(Photo: Friends Stock/Adobe Stock)
The pandemic has accelerated the use of technology and reshaped the way businesses operate across industries, including the retirement ecosystem. According to a new report by Vestwell, a cloud-based digital recordkeeper, 85 percent of advisors place a greater emphasis on the technology used to run their business today than they did prior to the pandemic.
Vestwell said the majority of existing 401(k) plans are run on outdated recordkeeping technology built in the 1980s. This technology lag can lead to higher costs, administrative headaches and inflexible plan design while creating a barrier to entry for small businesses that might be considering establishing a plan for their employees.