A recently released LIMRA study on ERISA 403(b) plans highlights that this $485 billion market is one that advisors and providers focused on 401(k) plans should consider. While 403(b)s — about two-thirds of which are sponsored by health care and higher educational institutions — are becoming more like 401(k) plans, there are subtle differences that providers or advisors thinking of entering this market should be aware of. Even health care and higher ed plans look and feel different.
As the mid-size and large 401(k) market becomes saturated — with fewer plans making changes and fewer “blind squirrel” advisors servicing plans, the ERISA 403(b) market might be a good opportunity.
