The missing link: How managed accounts help advisors deliver a true end-to-end retirement plan offering

Because no two participants are alike.

By Joshua Forstater 

For the majority of Americans, long-term savings begins in the workplace. Which is why there is a massive opportunity for retirement plan advisors to add value beyond setting companies up with a quality 401(k). In addition to building the right plan design with the right investments for the company, many advisors want to help participants better engage with their plans. And because no two participants are alike, managed accounts are a great way to get there.

So why, despite having been around for almost two decades, are managed accounts only now gaining significant attention?

For perspective, in 2009, only 26% of defined contribution plans offered a managed account option. Just 10 years later, that number was up to 66%. And according to a recent Vestwell survey, 27% of advisors said they plan on incorporating managed accounts into their offering in the next 12 months, which does not account for advisors who already offer them.

That said, it’s worth noting that while the focus is high, participant adoption remains low.