Building the Bridge to Wealth
The Bridge to Wealth is under construction.
Advisors are struggling to convert retirement plan relationships into wealth management clients, according to new research from Cerulli Associates and Morningstar. Just over 10% of advisors’ wealth clients come from DC plans today, even though 90% of advisors are looking to grow their wealth practice.
Based on a survey of 338 financial advisors and 22 interviews with advisory-firm executives and advisors, this white paper is arguably the first in-depth look at where the industry stands on the widely touted Bridge to Wealth, or the systematic sourcing of wealth clients via retirement plans. The research finds pockets of success but no fully functioning, working system at scale. It examines which types of firms and advisors are furthest along, what’s holding others back, and what it will take to build a bridge that works for advisors, firms, recordkeepers, and the plan participants who need help managing with their accumulated assets.
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