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Defined contribution plans provide workers with a tax-advantaged way to save for retirement. What happens to that money after they retire is an important question for advisors to ask. A majority of near-retirees (56%) expect to move workplace savings elsewhere when they retire, according to a 2026 retirement planning survey from Allspring Global Investments.1 Developing service offerings around 401(k) and other DC plans could help you to expand your financial advisor client base.
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What 401(k) Plan Participants Want
According to the Allspring survey, 70% of near-retirees say they desire two things: income protection and control of their investments. They don’t want to have to choose between competing goals, but they don’t all have the same vision for retirement. For instance, the survey found that 27% of retirees waited until after age 65 to retire, while 16% eventually returned to work.
The survey also sheds light on how investors with different buyer personas perceived their retirement needs:
| Priority | Investor Focus |
|---|---|
| Safety, predictability and access | 25% of respondents want complete security for investing retirement savings. |
| Real return | 54% are highly confident that equities will provide the returns needed to reach their goals. |
| Tax efficiency | 92% would be moved to take action with regard to their investments if doing so would yield greater tax savings. |
Additionally, 34% of near-retirees are interested in basic annuities; that increases to 66% if the remaining balance can be passed on to heirs. The data provides important clues for advisors seeking to add more 401(k) and DC plan participants to their book of business.
Individuals who invest for retirement at work want reassurance that the money they’ve saved will not run out as they age. They’re curious about guaranteed income products, like annuities, and they’re also interested in reducing their tax burden so they can keep more of the wealth they’ve grown. Above all, they want to have the final say over what happens with their investments but they’re not averse to asking for help. That’s where a professional advisor comes in.
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From Plan Participant to Client
Not every advisor has access to advice-hungry DC plan participants. But advisors hoping to work with retirees shouldn’t overlook the value of solidifying their advising relationship while their clients are relatively young.
“Research shows that if a person already has a trusted financial advisor relationship during their working years, they are likely to continue that relationship into retirement,” writes David Kennedy, senior analyst for retirement research at Cerulli Associates, in an email to SmartAsset.
That’s reinforced by the Allspring survey, which found that the more often near-retirees use an advisor, the more likely they are to roll their retirement savings out of their workplace plan when they separate from their employer. An established relationship gives advisors an opportunity to help clients evaluate whether to leave savings in the workplace plan, roll them into an IRA or pursue another available option.
Age makes a difference. For instance, only 27% of early-career plan participants reported working with an advisor, according to the survey. At the mid-career stage, 48% of participants work with an advisor, while 68% of later-career investors do so. Once they actually retire, the number of 401(k) and DC plan participants who work with an advisor rises to 73%.
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What Advisors Should Know About This Client Base
When possible, financial advisors should consider establishing relationships with clients early, even years before retirement. Here are additional ways to tap this financial advisor client base:
Lean Into Referrals
Referrals, either from current clients or centers of influence, can provide a direct connection to 401(k) plan participants who need help managing their investments. Kennedy says that, “Having a system for asking (for) referrals from existing clients and, to the extent it is applicable, leveraging their firm’s DC client base, are the ‘paths of least resistance’ to establishing those new relationships.”
A mix of strategies could lead to more referrals. For instance, you might develop a strong referral program, host client events to show your appreciation or simply ask clients if they know anyone who could benefit from your services. Networking, both virtually and in-person, can help you build centers of influence with other financial services professionals who may be willing to trade referrals with you.
Invest in Lead Generation and Marketing
Advisors who are looking to expand their client base should also consider investing in how they prospect and market their services to potential clients. For example, a digital marketing plan can be a wise investment if you’re able to broaden your reach without significantly expanding your budget. Social media, an advisor website and an email newsletter are some cost-effective ways to promote your business online.
You may also consider a service that combines lead generation with marketing automation. SmartAsset AMP is a subscription-based, holistic marketing suite that connects fiduciary advisors with prospective clients and provides tools to manage outreach. Automated email and text campaigns help advisors stay in touch with prospects who need more time before deciding whether to work with them.
Prepare for Decumulation vs. Accumulation
Advisors who want to support a client from asset accumulation (in working years) through the drawdown phase (in retirement) must keep in mind that the skills, partnerships and strategies are different in each phase. Advisors should be versed, or hire staff who are skilled, in everything from debt payoff and short-term savings strategies to retirement income, Medicare and Social Security.
You may consider earning one or more professional certifications to enhance your knowledge, which could make you more appealing to 401(k) and DC plan investors. For example, you might pursue a Retirement Income Certified Professional (RICP) or Certified Retirement Financial Advisor (CRFA) designation. Both can help you better serve retirement planning clients, though they differ in their focus and the requirements to earn each one.
Consider Your Target Asset Base
Many potential clients may not think they have sufficient assets to work with a financial advisor, according to Cerulli data. For example, they might assume that an advisor won’t work with them or that they don’t need an advisor’s help if they have $250,000 saved in their workplace plan.
Advisors who serve clients at that level of wealth, “may want to incorporate language that can signal their willingness to work with these clients and the value they could expect from an advice relationship,” Kennedy says. Targeting prospects with a lower threshold of investable assets could help you acquire those clients if other advisors expect a higher minimum AUM.
Weigh the Pros and Cons of M&A Strategies
Mergers and acquisitions can help you grow your client base overnight. You might buy a book of business or an entire advisory firm. Either option could help you acquire new clients who need help managing their 401(k) investments during their working years and beyond.
If you’re interested in buying a book of business, M&A marketplaces can help you find options that are relevant to your niche and budget. You may also talk to other advisors in your network who are thinking of retiring or who know someone that may be planning to leave the industry.
Keep in mind that this strategy isn’t foolproof; it generally requires a large outlay of cash to cover the purchase and the clients you acquire are not guaranteed to stay with your firm. Performing due diligence beforehand and working with the selling advisor to ease their clients into the transition could help improve retention rates once the sale is complete.
Frequently Asked Questions (FAQs)
Do 401(k) Plan Participants Need an Advisor?
A 401(k) plan participant does not need an advisor but there are some distinct advantages to working with one. An advisor can help investors decide what to do with their workplace savings once they retire, and help them evaluate different rollover options. They can also help clients evaluate investment choices, manage tax exposure and coordinate workplace savings with their broader retirement plan.
How Can an Advisor Market Themselves as a 401(k) Expert?
Advisors can market themselves as 401(k) plan experts by emphasizing their knowledge and skills, and crafting marketing messages that speak to the needs of investors who save in workplace plans. Offering free educational events, like virtual or in person seminars, is an opportunity to share that knowledge with prospects. They may also consider earning professional certifications, such as a Chartered Retirement Plans Specialist (CRPS) designation.
How Can Advisors Use Software to Manage Client 401(k) Plans?
Software can allow advisors to monitor and manage assets held away, including client 401(k) plans held at their employer. These tools can provide advisors and clients with a comprehensive overview of all assets managed, and allow advisors to monitor performance and fees. Advisors considering a software solution for 401(k) plan management should consider compliance specifications, features and cost.
Bottom Line
Working with retirement plan participants can help advisors build relationships that continue into retirement. Advisors can serve this client base by addressing current savings needs, preparing for retirement income decisions and helping clients evaluate their workplace plan options when they leave an employer.
Tips for Growing Your Financial Advisory Business
- Let us be your organic growth partner. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- Expand your radius. SmartAsset’s recent survey shows that many advisors expect to continue meeting with clients remotely following COVID-19. Consider broadening your search and working with investors who are more comfortable with holding virtual meetings or spacing out in-person meetings.
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Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- The Retirement Decisions Defaults Can’t Address . Allspring, https://www.allspringglobal.com/globalassets/campaigns/2026-retirement-study/2026-retirement-study.pdf.