There’s no doubt that retirement planning in the U.S. is going through big changes. As savers and advisors adapt, it’s becoming more important to bring wealth management into the retirement conversation. Combining these services can strengthen relationships, boost retirement readiness, and improve the overall health of retirement plans—for everyone involved.
During our recent webinar, Offering wealth management to your plan participants, ERISA experts Fred Reish and Joshua Waldbeser explored this topic with Jaron Carmichael, Director of Retirement Group at Mercer Advisors, highlighting both the opportunities and the compliance considerations that come with this shift.
Plan sponsors and retirement plan advisors (RPAs) are increasingly recognizing the value of a holistic financial planning approach. By integrating wealth management services into their plan offering, workplace retirement plans can provide participants with a comprehensive view of their financial health, including investment options, estate planning, and other financial goals. Helping participants see their full financial picture not only gives them confidence in reaching their goals—it also improves long-term outcomes and reinforces the advisor’s value in the retirement planning space.
By offering both wealth management and retirement planning services, RPAs can build stronger, more comprehensive relationships with their clients. This holistic approach allows RPAs to address a broader range of financial needs, from retirement savings to estate planning and tax optimization. It also ensures that participants’ retirement goals are aligned with their overall financial strategy—which can result in better investment decisions, more efficient tax planning, and a more secure financial future.
“We primarily offer the service to our plan sponsor clients so that we can manage their 401(k) balances in line with their overall strategy as part of our wealth management offering," Carmichael said.
RPAs who provide a wide range of services can attract and retain more clients. If an advisor offers their clients a service that enables them to manage retirement assets holistically without needing to roll them over, then those assets stay in plan—contributing to AUM and overall plan health. This not only benefits the advisor but also provides clients with more resources and expertise to manage their financial futures.
According to Reish and Waldbeser, distinguishing between roles as a fiduciary for the plan and a provider of wealth management services is crucial in ensuring ERISA compliance. This can also involve:
Proper disclosure: Clear communication of the nature of the services provided and the fees associated with them.
Reasonable fees: Insurance that fees are reasonable and aligned with the value of the services provided.
Best interests: Always acting in the best interests of both the participants and the plan.
Carmichael said that when providing these services, he makes sure his clients clearly understand which role he’s serving in.
“We have a fiduciary responsibility to our retirement plan clients to retirement plan participants as well as to wealth, management, families, and individuals. So it's important to us that they understand the difference when we're serving as a fiduciary advisor to the plan, versus offering non-fiduciary education services to participants, versus giving fiduciary advice to plan participants and individuals. It's a matter of clarifying who is our audience and what hat are we wearing as we're talking to that audience," Carmichael said.
Technology plays a crucial role in managing participant accounts effectively while maintaining regulatory compliance. Secure and compliant technology platforms can help RPAs:
Manage accounts: Efficiently manage participant accounts and ensure data security.
Remain compliant: Stay up-to-date with regulatory requirements and ensure all actions are compliant.
When participants remain informed, advisors and retirement savers can move forward with shared clarity. It can be helpful for participants to understand the benefits and risks of rolling over into an IRA, as well as the differences between plan-level and participant-level fiduciary services.
Carmichael shared that a 401(k) plan sponsor he supported with comprehensive wealth management was so impressed with the service provided to his business that he asked Carmichael to become his personal advisor.
"He was thrilled to have a customized tailored solution that he didn't have to log into and manage and track and and have another to do item on his list. That's been a great success story for him and his family, as well as for the employees that we've engaged there," Carmichael said.
Reish and Waldbeser provided valuable insights on offering both plan-level and participant-level fiduciary services. They emphasize that it is permissible under ERISA as long as certain conditions are met, such as:
Reasonable and properly disclosed fees: Fees must be reasonable and clearly disclosed to participants.
No liability for plan sponsor: The plan sponsor must remain out of participants' arrangements.
Proper account access: RPAs must have proper access to participant accounts to avoid issues like misappropriation of plan assets and failure to supervise.
Waldbeser emphasized that the decision should ultimately be made by the participant, based on their own informed judgment.
"The plan sponsor is not liable for the participant's decision or the fees paid to the advisor for participant-level services, as long as the plan sponsor does not recommend, select, or contract with the advisor for those services," Waldbeser said.
The convergence of wealth management and retirement planning is more than a trend—it’s a strategic shift reshaping the advisor-participant relationship. As regulatory guidance evolves and technology enables secure, compliant account access, RPAs are uniquely positioned to deliver holistic financial advice that benefits retirement savers and plan sponsors. By embracing this integrated approach—and navigating ERISA requirements with care—advisors can strengthen their value, improve retirement outcomes, and lead the next generation of financial planning.
“What we’ve said today is you don’t need to [be limited to plan-level services]. The law supports providing multiple services. As long as you’re competent and your fees are reasonable," Reish said.