The retirement planning landscape is becoming increasingly complicated and challenging. Inflation, market volatility, and changing customer expectations are increasing the strain on plan administrators and recordkeepers.

Smart plan sponsors are turning to specialized service providers to help them maximize plan efficiency and ensure the best possible outcomes for their participants. These advisors provide expertise in retirement benefits analysis, fee benchmarking, compliance consulting, financial wellness programming, and asset allocation strategies.

Retirement plan administration solution for the future

Retirement plan administrators must be able to anticipate and adapt to changing economic conditions to ensure long-term success. Technologies such as cloud computing, data analytics, and automated processes are helping reduce the cost burden and improving plan design.

You must ensure there are a few essential features in your retirement plan administration solution to be future-proof:

1. Automation: Automation is critical to keeping retirement plan administration on track amidst the rising number of plan participants. Automating repeat processes allows you to quickly and accurately process vast volumes of complex participant data. In addition, the retirement plan administration system must automatically adjust to changing ERISA and DOL compliance rules and take corrective action.

2. Compliance & Regulatory Support: Maintaining ever-changing retirement industry regulations can be challenging. But staying compliant with federal laws such as ERISA and IRS requirements is mandatory for recordkeepers and plan administrators to avoid penalties. Therefore, a future-proof retirement plan administration solution should be able to track, manage, and update all necessary compliance requirements.

3. Scalability: The US retirement industry is growing with Defined Contribution (DC) plans investments exceeding $10 trillion and 401(k) plans reaching $7 trillion in 401(k) plans. As the number of plan participants and volume of assets grows, scalability is essential for a retirement plan administration solution. A modern retirement administration solution should be able to seamlessly scale up or down depending on your clients’ needs.

4. Accessibility & Security: The changing demographics of the retirement plan industry demands self-service features and personalized plan advisory. Retirement plan administrators must provide participants secure access to their plan accounts over a digital platform. It should be intuitive and easily accessible with an internet connection. The platform should also provide mobile access so users can easily review information, make changes, and view balances. In addition, Robo-advisors and 24X7 customer support features will ensure a better customer experience.

5. Analytics & Insight: Comprehensive analytics tools can help retirement plan administrators to gain better insight into 401(k) plan performance. You can use them to manage risk exposures and identify opportunities for improvement. The plan administration solution must use advanced technology, including AI and ML algorithms, to analyze data gathered from various sources.

Make the right choice

Congruent’s CORE is the ideal retirement plan administration solution for recordkeepers and plans administrators looking to stay ahead of the curve. The platform is designed with a futuristic approach to seamlessly managing 401(k) plans. From efficiently managing daily operations to keeping track of regulatory changes, our AI-driven platform meets the growing needs of the retirement plan industry.

Offering a suite of advanced features, Congruent’s CORE 2.0 is built in the Cloud to provide an efficient and secure platform.

With Congruent Solutions as your retirement plan administration partner, you can rest assured knowing that you have invested in the future of retirement planning. Contact our experts today.

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