The convergence of wealth & retirement: A $40 trillion market for advisors
See how integrating wealth management and retirement planning can help your firm tap into a $40 trillion market opportunity.
By
Betterment Editors
Published
The convergence of wealth & retirement: A $40 trillion market for advisors Jul 2, 2025 9:00:00 AM See how integrating wealth management and retirement planning can help your firm tap into a $40 trillion market opportunity. If you’re looking to grow your wealth management firm’s client base, serving retirement plan participants might just be the key to unlocking greater growth potential. The opportunity by the numbers: According to the most recent Betterment Retirement Readiness Report, 79% of employees say their employer offers a 401(k) plan. Valued at $40 trillion, retirement assets are 32% of all U.S. household financial assets, according to the ICI. The National Association of Plan Advisors reported that 74% of 401(k) participants would welcome professional help managing their accounts. The opportunity is clear for growth-minded advisors: A multi-trillion-dollar market of consumers is actively seeking professional financial guidance. In this article, we explore this growth opportunity along with how to overcome the challenges that come with it. Key benefits for advisors: Integrating wealth management and retirement planning The convergence of wealth management and retirement planning offers two benefits. Benefit 1: Use retirement planning as a growth engine for your firm Many plan participants are eager to work with financial advisors. According to a 2024 study by American Century Investments, over half use a financial advisor, and among those who don’t, 39% plan to do so in the future. At Betterment, we found in our Retirement Readiness Report that 21% would consider switching jobs to one that offers access to a live financial advisor. Engaging with retirement plan participants can be a powerful way for advisors to expand their client base. A 2024 Capital Group study found that high-growth wealth managers were: More likely to have 25% or more of their AUM in defined contribution plans 23% more likely to have a strategy for transitioning plan participants into prospects for their practice. Additionally, the study found that advisors can uncover a $1 million prospect for every 10 meetings they have with participants in medium to large plans. If you’re not already serving retirement plans, restructuring your firm to do so can be a gateway to growth. Plan participants have complex financial lives, and many will welcome advice on how to manage their overall wealth. Benefit 2: Manage clients’ full financial picture On the wealth management side of your business, clients look for holistic advice. Their retirement nest egg is part of their wealth, after all. Your current wealth management clients likely have sizable assets in their retirement plans and could benefit from your advice on portfolio allocation and management. Whether they’re switching jobs, starting a business, or reallocating funds, you can help them make informed decisions across their entire financial life. Vanguard’s “How America Saves 2025” report found that average plan participant account balances increased by 10% in 2024, reaching an all-time high of $148,153. CNBC reported that about two-thirds of rollover investors hold cash unintentionally because the funds are initially placed in a cash account. You have the opportunity to position your firm as a one-stop resource for financial wellness, retaining clients by helping them manage their entire financial life. How to overcome the challenges of managing wealth and retirement clients Serving wealth and retirement plans usually requires restructuring your firm. Below are three potential obstacles and how our team at Betterment can help you overcome them. Challenge 1: Provide holistic financial planning at scale The challenge: Serving multiple retirement plans simultaneously, each with dozens or even hundreds of participants, can make retirement planning at scale overwhelming for your firm without the right platform. How Betterment helps: Receive dedicated support from day one to streamline plan management—so you can focus on growing your business. A Senior 401(k) Onboarding Associate will be your dedicated point of contact to help you onboard new clients and offer ongoing support. You’ll also be assigned a 401(k) Client Success Manager, who will be your go-to contact for any questions, along with helping you set goals, manage plan changes, navigate Form 5500 filings, and create tailored education for plan participants. Challenge 2: Staying on top of regulatory compliance The challenge: Staying compliant takes work—and plenty of time. You’ll not only need to stay on top of legislative and regulatory changes related to retirement plans, but also your firm’s compliance and legal policies. How Betterment helps: We are your 3(16) administrator, handling compliance testing, taking on time-intensive work, and preparing audit packages and 5500s. We have a team of compliance experts with ASPPA, NAPA, and IRS designations, plus 50+ years of combined compliance experience. Challenge 3: Managing technologies to serve retirement plans The challenge: Serving retirement plans will require your firm to adopt new technologies to automate planning, compliance, and communications at scale. Trying to piece a tech stack together by yourself can take your valuable time away from serving clients. How Betterment helps: Our all-in-one dashboard helps you track plan metrics, generate custom reports, and get participant-level data with just a few clicks. Use our tools and technology to easily convert participants to new clients, building relationships to offer holistic financial planning to meet their evolving needs. Plus, for self-employed clients, we offer a streamlined, all-digital solo 401(k). And our mobile app lets your clients see their full financial picture on the go, branded with your firm’s logo, reinforcing your value between meetings. Grow your firm with a 401(k) solution built for advisors An easy-to-use platform with customizable investment options and white glove support for you and your clients. Flexible, customizable plan design and investment options Dedicated advisor and client support for administrative needs An all-in-one platform to service clients across retirement and wealth
See how integrating wealth management and retirement planning can help your firm tap into a $40 trillion market opportunity.
If you’re looking to grow your wealth management firm’s client base, serving retirement plan participants might just be the key to unlocking greater growth potential.
The opportunity by the numbers:
- According to the most recent Betterment Retirement Readiness Report, 79% of employees say their employer offers a 401(k) plan.
- Valued at $40 trillion, retirement assets are 32% of all U.S. household financial assets, according to the ICI.
- The National Association of Plan Advisors reported that 74% of 401(k) participants would welcome professional help managing their accounts.
The opportunity is clear for growth-minded advisors: A multi-trillion-dollar market of consumers is actively seeking professional financial guidance.
In this article, we explore this growth opportunity along with how to overcome the challenges that come with it.
Key benefits for advisors: Integrating wealth management and retirement planning
The convergence of wealth management and retirement planning offers two benefits.
Benefit 1: Use retirement planning as a growth engine for your firm
Many plan participants are eager to work with financial advisors. According to a 2024 study by American Century Investments, over half use a financial advisor, and among those who don’t, 39% plan to do so in the future.
At Betterment, we found in our Retirement Readiness Report that 21% would consider switching jobs to one that offers access to a live financial advisor.
Engaging with retirement plan participants can be a powerful way for advisors to expand their client base. A 2024 Capital Group study found that high-growth wealth managers were:
- More likely to have 25% or more of their AUM in defined contribution plans
- 23% more likely to have a strategy for transitioning plan participants into prospects for their practice.
Additionally, the study found that advisors can uncover a $1 million prospect for every 10 meetings they have with participants in medium to large plans.
If you’re not already serving retirement plans, restructuring your firm to do so can be a gateway to growth. Plan participants have complex financial lives, and many will welcome advice on how to manage their overall wealth.
Benefit 2: Manage clients’ full financial picture
On the wealth management side of your business, clients look for holistic advice. Their retirement nest egg is part of their wealth, after all.
Your current wealth management clients likely have sizable assets in their retirement plans and could benefit from your advice on portfolio allocation and management. Whether they’re switching jobs, starting a business, or reallocating funds, you can help them make informed decisions across their entire financial life.
- Vanguard’s “How America Saves 2025” report found that average plan participant account balances increased by 10% in 2024, reaching an all-time high of $148,153.
- CNBC reported that about two-thirds of rollover investors hold cash unintentionally because the funds are initially placed in a cash account.
You have the opportunity to position your firm as a one-stop resource for financial wellness, retaining clients by helping them manage their entire financial life.
How to overcome the challenges of managing wealth and retirement clients
Serving wealth and retirement plans usually requires restructuring your firm. Below are three potential obstacles and how our team at Betterment can help you overcome them.
Challenge 1: Provide holistic financial planning at scale
- The challenge: Serving multiple retirement plans simultaneously, each with dozens or even hundreds of participants, can make retirement planning at scale overwhelming for your firm without the right platform.
- How Betterment helps: Receive dedicated support from day one to streamline plan management—so you can focus on growing your business. A Senior 401(k) Onboarding Associate will be your dedicated point of contact to help you onboard new clients and offer ongoing support. You’ll also be assigned a 401(k) Client Success Manager, who will be your go-to contact for any questions, along with helping you set goals, manage plan changes, navigate Form 5500 filings, and create tailored education for plan participants.
Challenge 2: Staying on top of regulatory compliance
- The challenge: Staying compliant takes work—and plenty of time. You’ll not only need to stay on top of legislative and regulatory changes related to retirement plans, but also your firm’s compliance and legal policies.
- How Betterment helps: We are your 3(16) administrator, handling compliance testing, taking on time-intensive work, and preparing audit packages and 5500s. We have a team of compliance experts with ASPPA, NAPA, and IRS designations, plus 50+ years of combined compliance experience.
Challenge 3: Managing technologies to serve retirement plans
- The challenge: Serving retirement plans will require your firm to adopt new technologies to automate planning, compliance, and communications at scale. Trying to piece a tech stack together by yourself can take your valuable time away from serving clients.
- How Betterment helps: Our all-in-one dashboard helps you track plan metrics, generate custom reports, and get participant-level data with just a few clicks. Use our tools and technology to easily convert participants to new clients, building relationships to offer holistic financial planning to meet their evolving needs. Plus, for self-employed clients, we offer a streamlined, all-digital solo 401(k). And our mobile app lets your clients see their full financial picture on the go, branded with your firm’s logo, reinforcing your value between meetings.
Grow your firm with a 401(k) solution built for advisors
An easy-to-use platform with customizable investment options and white glove support for you and your clients.
- Flexible, customizable plan design and investment options
- Dedicated advisor and client support for administrative needs
- An all-in-one platform to service clients across retirement and wealth
Want to see it in action? 