401(k) Real Talk Episode 188: April 15, 2026

Greetings and a warm welcome to this week's edition of 401k Real Talk. This is Fred Barstein, contributing editor of wealthmanagement.com's RPA channel and CEO at Trrow TPSU and 401k TV. I review all of this week's stories and select the most important and interesting ones, providing open, honest, and candid discussion you will not get anywhere else.

So, let's get real. First story, the recent Cerulei DC report reflects plan sponsors changing priorities and the pressure it puts on recordkeepers dealing with declining margins and growing expectations. A whopping 27% of plans are expected to conduct a formal recordkeeper search while 55% will benchmark fees and services.

By the time they go to RFP, it may be too late for the incumbent. Some providers are responding by embedding workers and staying open on weekends, and many are attempting to leverage AI and create personalized participant experiences. The definition of outcomes is shifting from just improvement account balances to overall financial wellness with more plans asking how record keepers are helping.

Meanwhile, McKenzie reported that planned services for larger the larger mega market profit margins are just 3%. Next story, a WTW study about the use of AI by health and benefit professionals shows that while interest is high, implementation is low. The current use of AI is focused on timely and targeted employee communications, data analytics and insights and decision support.

The biggest barrier is execution. 71% reported limited or no access to AI skills and resources with many concerned about risks and data privacy. Just 1% are deploying an AI roadmap.

Early adopters come from larger organizations with greater resources focused on narrow use cases leveraging third parties while keeping guard rails in place. Most do not see AI as a way to decrease headcount. Rather, they see it as a way to increase productivity, shift workers to higher value tasks, and deal with shrinking teams.