Ascensus routes flagged 401(k) participants to the plan’s own advisor

Ascensus has begun routing 401(k) participants to the financial advisor who already serves their employer's plan. The recordkeeper's new workplace-to-wealth platform flags participants at job changes, rollovers and retirement, then hands them to the incumbent plan advisor. Ascensus, based in Dresher, Pennsylvania, administers more than $1.3 trillion for more than 16 million savers. It unveiled the platform late last month, InvestmentNews reported today.

One partner firm is going live on the program now. Dan Morrison, president of retirement at Ascensus, told InvestmentNews he expects "somewhere in the realm of 18 to 20 partners" live by this time next year.

In a joint Cerulli and Morningstar study of 338 advisors who serve defined contribution plans, 10.2% of those advisors' wealth clients came from their DC plan relationships. Even so, 91.2% of the advisors said growing their wealth practice is at least a moderate priority. Among those who ranked it lower, 37.8% said they lack the time to prospect for wealth clients inside their plans, the most common reason the study cites.

Ascensus also pointed to Cerulli's U.S. Retirement End-Investor 2025 report, which found that 63% of active 401(k) participants have no financial advisor. Morrison called the opening "a massive opportunity on both sides" and said AI advances give the firm more behavioral data than it has had before, making it a "force multiplier" for identifying participants who need help.

Ascensus sends the participant to the plan's existing advisor, not to the highest bidder. The plan sponsor hires that advisor, and Morrison said the sponsor is "effectively endorsing you then to provide advice at the plan level."