Cammack Retirement’s Jeffrey Snyder recently published a thoughtful list of trends likely to affect the retirement market.
Not only do these trends represent opportunities for advisors to grow and distinguish themselves in a commoditizing market, they are also really good discussion points with clients and prospects to position advisors as thought leaders.
Snyder’s key trends include:
1. More money will flow into 401(k)-type plans, especially from government plans — similar to what we saw in the shift from DB to DC 10 years ago.
2. Increased focus on behavioral finance and outcomes.
3. Fewer funds on investment menus.
4. More asset classes on investment menus.
5. A move to CITs, SMAs and less expensive funds like ETFs and index funds resulting from fee disclosure and closer scrutiny of fees.
6. Tough times for fixed income in a low interest rate environment with fewer providers and capacity issues driving up costs.
7. More types of investments in QDIAs, including managed accounts and custom TDFs.
8. Growing demand for guaranteed income at retirement.
9. Continued regulatory and legislative scrutiny — retirement is now a “page 1” issue.
I might also add continued industry consolidation and state-mandated auto-IRA plans as things to look for in 2015 that will affect our industry, as well as innovation in the small market through technology. What’s on your list? Share your thoughts in the discussion box below.
