Retirement Advisors: Unlocking Small Business Opportunities in the 401(k) Market
Retirement advisors have a significant small business opportunity emerging from state mandates and increasing plan complexity.
Aaron Tallen, VP and Head of Distribution Operations and 401 Defined Contributions at Security Benefit, emphasizes the growing demand for expert help in the 401(k) market. He attributes this trend to:
- State mandates encouraging small business owners to adopt personalized retirement plans like SEP, SIMPLE, solo K, and small 401(k)s instead of relying on government-run alternatives.
- A 60% increase in small business retirement plan adoption since 2019, according to HR platform Gusto, showcasing the market's growth.
- A surge in consolidation, with small business owners turning to advisors for guidance compared to benefitting from competing brokerages or advisory firms.
Tallen highlights the importance of advisors' understanding the unique needs of small business owners to capture this growing market segment.