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The Future in Retirement Plans

cohen

I was working for a third party administrator, some fellow employees thought I was crazy because I predicted that there would be some fee disclosure requirement as well as a backlash against revenue sharing. Now I only wish I had predicted the winning Powerball numbers instead.

 

As far as the future of retirement plans, I don’t see a disturbance in the force (obligatory Star Wars reference), but I see this:

 

A new fiduciary rule that will be far more stringent on brokers than the one that was just delayed.

 

Open multiple employer plans with plan providers serving as plan sponsors.

 

2-3 share classes for mutual funds offered in 401(k) plans.

 

A push for more investment advice offered to plan participants.

 

More emphasis on passive investments.

 

Mandatory auto enrollment and elimination of most vesting schedules.

 

Greater push to eliminate one year wait for employees to defer in a 401(k).

 

Further pressure to increase retirement plan coverage for all private sector employees.

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