Consultants expand services, embrace tech and pursue new markets to stay ahead of client needs.
Retirement consultants are reshaping their approach as growth demands, emerging technologies and shifting participant expectations transform the advisory landscape.
BlackRock’s 2025 Read on Retirement survey of 303 plan consultants shows an industry leaning into expanded service models, deeper participant engagement and a broader range of investment solutions as competitive pressures intensify. And while consultants across experience levels continue to prioritize client service and participant support, the ways they deliver on those goals are becoming more varied.
Millennial advisors are driving much of the change and are more than twice as likely as their Gen X counterparts to add new retirement plan services over the next one to two years, reflecting a growth-oriented mindset. Many expect to enhance their investment selection capabilities, expand educational offerings for plan sponsors and strengthen plan design support to help differentiate their practices and win new defined contribution business.
The blurring of wealth and retirement planning is also reshaping prospecting strategies. Business owners account for roughly 30% of high-net-worth clients, creating openings for consultants who can support both company retirement plans and personal financial needs. According to the survey, retirement plans often provide a natural entry point for broader wealth conversations.
AI use to increase
Technology is playing a greater role as well, and while only 14% of consultants use AI today, 57% say they plan to adopt it within the next year. Most expect AI to streamline client service tasks, boost business development and ease operational burdens.
Participant-focused programs are evolving in response to heightened financial anxiety with education on market volatility and inflation the most commonly offered wellness feature, surpassing income-planning tools and Social Security guidance, which ranked higher in previous years.
Investment preferences are also changing as market conditions challenge retirement readiness. Median savings rates have fallen from 12% in 2022 to 10%, and emergency savings have declined as well.
Against that backdrop, consultants say interest in active management is rising. Just over half believe active managers can consistently outperform, and most focus on fees, diversification and manager skill when evaluating these strategies.
Every plan sponsor surveyed feels responsible for helping participants generate and manage their retirement income but only 45% of consultants currently recommend an income-focused solution. Concerns about fees and communication hurdles continue to slow broader adoption, despite strong saver demand for income options.
Private markets growth
Interest in private markets continues to build, though many advisors acknowledge they are still climbing the learning curve.
Only 32% say they have a strong understanding of private markets, and 68% do not feel they possess high-level expertise. However, 27% expect to incorporate private-market exposure into defined contribution plans in the future, most likely through target-date funds and managed accounts.
The report concludes that “It’s all of our work to lead the way,” reflecting that as market complexity grows and participant needs expand, consultants are being pushed to innovate, broaden their capabilities and deliver more holistic support. How they respond will shape the next phase of retirement planning and the outcomes savers experience in the years ahead.