This whitepaper by Everest Group explores the urgent need for modernization in the U.S. retirement plan industry, especially in the wake of fee compression, regulatory shifts, and changing participant expectations. It outlines how legacy, mainframe-based recordkeeping systems are constraining innovation, personalization, and operational efficiency. With a forward-looking lens, the paper maps out industry-wide challenges and the strategic opportunity presented by digital and cloud-first transformation.
Why Modular Cloud-First Transformation Is the Future
The paper emphasizes two distinct modernization paths, “big-bang” end-to-end system replacement and “modular, progressive” upgrades, while advocating for the latter due to its agility and cost efficiency. It makes a compelling case for a microservices-based, cloud-native approach that allows phased improvements, quick wins, and better control over outcomes. Providers that prioritize a customer-centric, scalable, and future-proof tech architecture stand to gain significant advantages in participant experience, speed to market, and operational agility.
