6 industry execs on what to expect in 2016
December 30, 2015 by Nick Thornton
We look ahead to 2016 by asking six retirement industry executives what they see coming in the defined contribution plan space.
One trend we’ve seen is that of consolidation, which analysts confirm.
“Recordkeeping costs for sponsors and participants are half what they were 10 years ago,” says Brooks Herman, head of data research at BrightScope, an analytics firm that tracks the defined contribution space.
“Going forward, providers’ margins are going to be paper thin,” he added.
Fee compression and technology innovation—two factors that are not independent of each other, notes Herman—will continue to drive the industry.
And that will propel more consolidation. Only time will tell how much more.
“At some point recordkeeping fees will hit a bottom,” says Herman. “It will always cost some money to administer 401(k) plans. From there, it becomes a question of which providers have the power to scale.”
We asked six executives in top retirement industry companies their views of what’s ahead for 2016. Click HERE to read…
