US. Can AI relieve cost pressures on retirement plans?
The 401(k) plan market is undergoing a technology makeover, as fintechs offer providers new tools to lower the cost of the plans and boost profits.
With the fiduciary rule adding additional scrutiny to employer plans, traditional providers are under increased pressure to find the best and cheapest vehicles for clients. Startups like Newark, New Jersey-based Dream Forward claim their advisor tech will help lower administration costs and keep retirement plans profitable.
“Fees are going to come down overtime,” says Dream Forward CEO Grant Easterbrook. “Models are changing. It’s going to be a huge price adjustment for companies.”
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