Wealth Management Advisers Seek to Retain DC Plan Participants

The practices of providing retirement plan advice and wealth management are becoming increasingly “blurred.”

A white paper from Cerulli Associates and Morningstar Inc., “Building the Bridge to Wealth,”  published this morning, found that advisers, wealth firms and recordkeepers are investing heavily in strategies that turn defined contribution plan relationships into broader wealth management advisory opportunities.

“Some DC adviser practices are finding success with the Bridge to Wealth. These advisers are leaning into providing financial wellness services to plan participants through educational content, on-site 1:1 meetings, and making themselves available to answer questions as they arise,” wrote Chris Baily, director of retirement at Cerulli, in an email to PLANADVISER. 

A separate study from Crisil Coalition Greenwich, “Advised and Self-Directed: Winning the Hybrid Wealth Client,” also published this morning, found that affluent investors are increasingly combining adviser-led and self-directed accounts, signaling interest and demand for more flexible advice models that extend beyond traditional retirement planning.

As advisers seek ways to convert retirement plan participants into ongoing wealth management clients, Cerulli found that 63% of an unspecified number of surveyed advisers said they view leveraging DC plans for wealth client prospecting as at least a moderate priority.

The opportunity stems in part from an unmet demand for financial advice. While 40% of surveyed participants reported working with a financial adviser for ongoing financial planning, retirement planning and investment management, many participants without advisers remained interested in receiving guidance. Cerulli found 20% of participants without an adviser would like to hire one, while another 45% remain undecided.

Among participants without an adviser, 54% said they did not believe they were wealthy enough to work with one, while 31% said they did not know where to find an adviser. In addition, 67% said advisory fees are not worth the cost, per Cerulli.

Seeking Advice Beyond Retirement

Participants are also increasingly seeking support on issues that extend beyond retirement planning, including budgeting, emergency savings, home purchases and college funding. Cerulli found that more than 90% of participants identified maintaining a good quality of life and achieving financial peace of mind as at least moderate priorities, while 92% said retirement savings was a moderate or major priority. Advisers, meanwhile, see an opportunity to leverage existing retirement plan relationships to provide more holistic financial guidance.

“Not every participant is asking about rollovers or retirement income. Younger ones need help with budgeting, debt, funding education, and more. These advisers field these questions from participants and, if the participant asks about wealth management, are ready to have that conversation as well,” wrote Baily. 

The industry’s evolving approach also reflects changing investor behavior outside workplace retirement plans.

A separate report from Crisil Coalition Greenwich found that approximately 67% of affluent consumers have worked with a financial adviser, and 54% have used self-directed investment accounts, with roughly 22% maintaining both adviser-led and self-directed relationships.

While these “hybrid” investors are generally more price-sensitive and more willing to consider alternative advice models than clients who rely exclusively on advisers, the study found many are not abandoning professional advice altogether. Instead, investors increasingly appear to be seeking greater flexibility in how they engage with financial professionals.

For advisers, however, hybrid relationships can present both an opportunity and a challenge. According to the Crisil Coalition Greenwich report, advised clients who also maintain self-directed accounts were 67% more likely to consider switching or leaving their adviser, compared with clients who relied solely on adviser-led relationships. Hybrid investors also were three times more likely than adviser-only clients to say they were open to automated advice.

The Crisil Coalition Greenwich report also found that many hybrid investors say they are not opposed to holistic advice, but may be unconvinced of its value relative to its cost, highlighting the importance to advisers of clearly demonstrating the benefits of professional guidance.

Rethinking Client Relationships

The findings suggest advisers may need to rethink what constitutes a successful client relationship. Rather than expecting to manage all of a client’s assets through a single advisory account, firms may find greater success by positioning themselves as a central source of advice across a client’s entire financial picture, including assets held elsewhere.

Cerulli found advisers were taking different approaches to that challenge. Wealth-retirement hybrid advisers, which serve both retirement plans and wealth management clients, appeared to be among the most advanced in connecting the two businesses. These advisers frequently engaged participants through financial wellness programs, education sessions and one-on-one conversations designed to build long-term relationships.

“Firms recognize the opportunity to fuel organic growth, and for some providers the necessity, by bringing retirement and wealth management together,” wrote Baily. 

The report also found strong adviser support for expanding access to advice. More than 80% of advisers agreed that less-wealthy participants need access to financial planning and advice, although many said they lacked the services and solutions necessary to serve those participants at scale.

The Crisil Coalition Greenwich report was based on data from the Coalition Greenwich Voice of Client – 2026 Wealth Study, which collected data from 5,000 individual investors, including representation from the affluent, high-net-worth and ultra-high-net-worth households.