The global Asset & Wealth Management (A&WM) landscape is evolving rapidly, as highlighted in our annual trend report. Despite high pension asset-to-GDP ratios in countries like the US and leading European nations, significant retirement plan gaps persist among small businesses, self-employed individuals, and part-time workers. In the US, nearly 47% of small businesses with up to 49 employees offer no retirement plan, while in Europe over one-third of respondents cite financial constraints as a barrier to retirement savings. This blog delves into the multifaceted opportunities in the retirement space—from policy initiatives and innovative product solutions to digital integration and holistic financial wellness programs—that are shaping the future of retirement planning.
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Global Asset & Wealth Management Trends and Opportunities in 2025
Addressing the Retirement Gap
Even with global pension assets reaching an estimated $55.7 trillion in 2023, large segments of the workforce remain underserved. Research by Econsult Solutions for Pew Charitable Trusts forecasts an annual income shortfall of over $7,000 for many elderly households by 2040. Such disparities are not merely statistics; they represent a real challenge for millions of individuals who face an uncertain retirement. The lack of adequate retirement plans—particularly among small businesses—underscores the urgent need for innovative strategies that extend coverage and build long-term financial resilience.
Policy Initiatives and Market Reforms
Recognizing the critical gaps in retirement security, policymakers in the US and Europe are implementing robust reforms. The US Secure 2.0 Act of 2022 and Europe’s Pan-European Pension Product (PEPP) are two key initiatives designed to widen access to retirement plans. These policies promote the adoption of innovative solutions such as State Facilitated Retirement Programs (SFRPs) and Pooled Employer Plans (PEPs), which aim to cover underserved populations by reducing administrative burdens and costs. Regulatory efforts are complemented by increasing government pension expenditure, with the US pension expenditure rising from 5.3% of GDP in 2000 to 6.7% in 2024, signaling a broader commitment to addressing retirement inadequacies.
Innovative Product-Driven Solutions
In response to the pressing need for broader retirement coverage, retirement providers are driving innovation in product offerings. Personalized retirement solutions are becoming a key differentiator in the market. In the US, asset managers are rolling out products like personalized target date funds (TDFs), dynamic Qualified Default Investment Alternatives (QDIAs), and advisor-managed accounts (AMAs) that cater to the unique trajectories of individual savers. Similarly, European providers are emphasizing drawdown strategies within Defined Contribution (DC) plans, along with enhanced digital tools that improve plan portability and participant engagement.
Product innovation not only helps bridge the retirement gap but also creates long-term wealth-building opportunities. Providers are increasingly focusing on strategies that deliver personalized advice and tailor-made investment solutions, thereby promoting a more engaging and secure retirement experience.
Transitioning from Defined Benefit to Defined Contribution Schemes
The shift from Defined Benefit (DB) to Defined Contribution (DC) schemes is no longer optional but necessary due to demographic, economic, and regulatory pressures. As DB schemes become strained by aging populations—especially in countries like the Netherlands and Ireland—DC models are emerging as the sustainable alternative. These schemes offer more predictable costs for businesses and shift the investment risk directly to the employee, while also promoting transparency and individual ownership of retirement outcomes.
Investor engagement has taken a new dimension in this transition. Emerging trends such as auto-enrolment programs, Master Trusts, and automated decumulation strategies are gaining traction, ensuring that participants not only save, but also manage their retirement funds in a more informed and proactive manner.
Digital Platforms and Integration of Payroll Systems
Technology is revolutionizing the retirement space by simplifying and streamlining the integration between payroll and retirement platforms. Leading financial firms such as BlackRock, Manulife, and Goldman Sachs are investing heavily in digital record-keeping solutions that cater specifically to underserved markets—especially plans with assets under $50 million. These digital recordkeepers are forging strong partnerships with Human Capital Management (HCM) and payroll providers, fostering an ecosystem where onboarding new clients is seamless.
Digital platforms now provide a one-stop solution that integrates payroll, retirement, wealth management, and HR services. This integration not only simplifies administration for employers but also delivers an enhanced user experience for employees, allowing for real-time access to retirement benefits and personalized financial insights.
A Holistic Approach to Retirement Readiness
Beyond traditional retirement planning, the US retirement landscape is shifting toward a holistic view of financial wellness. Today’s workforce demands broader financial support that extends well beyond just 401(k)s. According to the 2024 Employee Financial Wellness study by Bank of America, 59% of employees live paycheck to paycheck, and only 34% have emergency savings. For younger workers, student debt further complicates financial stability.
In response, employers are integrating comprehensive financial wellness programs that cover budgeting, debt management, and retirement planning. These initiatives aim to reduce financial stress, improve productivity, and ensure better long-term retirement outcomes. Partnerships with financial wellness platform providers—such as Envestnet, Enrich, and Gradifi are expanding the reach and effectiveness of these programs, empowering employees through personalized coaching, mental well-being support, and educational resources.
Conclusion: The Future of Retirement is Inclusive and Tech-Enabled
The retirement space is undergoing a profound transformation, driven by policy reforms, digital innovations, and a holistic approach to financial wellness. With emerging product innovations, the shift from DB to DC schemes, and the rapid integration of digital platforms, the opportunities to secure a better retirement future are abundant. By addressing the glaring retirement gaps and enhancing both access and engagement, asset managers and retirement providers are poised to build a more inclusive, secure, and sustainable retirement landscape.
Evalueserve’s AWM offerings empower retirement providers by integrating payroll, retirement, wealth management, and HR services through advanced analytics and digital solutions. Our innovative tools facilitate personalized planning and operational efficiency, ensuring long-term financial security for all stakeholders.
Embrace these opportunities in the retirement space to pave the way for a future where financial wellness and retirement readiness go hand in hand, ultimately ensuring that everyone has the chance to retire with confidence and stability.
