Illustration by Michael Witte
An estimated 5.4 million small U.S. businesses lack retirement plans, leaving many without a path to financial security, according to the DOL Pension Bulletin. At a time when the defined contribution retirement system struggles with the persistent challenges of expanding access, increasing participation, driving engagement and improving retirement outcomes, a new wave of technology-driven solutions is emerging, according to KWP Growth Partners, a strategic retirement planning advisory firm that collaborates with providers, advisors and fintech innovators.
The $10 trillion retirement plan market is “at a crossroads,” said Lisa Kottler, KWP’s partner of strategic growth and innovation. “Nearly 90% of employers still don’t offer a 401(k). At the same time, technological capability is exploding. AI, machine learning, and embedded finance tools are finally making it possible to scale retirement benefits to the broader workforce. If incumbents and innovators don’t act now, we risk falling further behind.
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
