Growing Number of DC Participants Convert to Wealth Clients
The convergence between wealth management and retirement planning is accelerating, as seen by more retirement plan participants converting into broader wealth management clients.
Findings from Advisor Insight, an advisor benchmarking service from FUSE Research Network, shows that 62% of advisors said they’ve converted at least 6% of defined contribution (DC) plan participants into wealth management clients.
Further, among advisors who manage over $500 million in assets, 41% turned over 15% of participants into wealth clients. Among advisors managing under $100 million, 28% of advisors were able to convert that number of participants to wealth clients.
“Advisors are increasingly willing to serve a handful of DC plans — often 401(k) plans tied to existing business-owner clients — because participants represent one of the most efficient sources of new wealth relationships,” said Loren Fox, co-manager of Advisor Insight at FUSE Research Network. “In fact, 65% of advisors tell us converting plan participants is easier than acquiring clients through traditional marketing or referrals.”
Among one of the leading drivers of the shift is an increase in financial wellness programs by DC plan sponsors, the report notes. A growing number of employers have incorporated financial wellness strategies into their plans, from implementing personalized offerings to better attract and retain employees to providing help with debt management and childcare costs.
Institutions have also named financial wellness features as a top trend for plan sponsors in 2026, including strategies that improve on participant experiences.
Research from FUSE shows that nearly 60% of advisors to its survey now offer holistic financial advice or one-on-one consultations to participants in the DC plans they advise.
“Financial wellness has changed the advisor-participant relationship,” Fox said. “Once advisors are helping employees with budgeting, debt or retirement income planning, conversations naturally expand to non-plan assets. That’s why we’re seeing retirement and wealth advice increasingly merge into a single client strategy.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.