Question: With the positive trajectory of state-run IRA programs over the past few years and new tax incentives provided by SECURE 2.0 for starting a 401(k) plan, what is the potential for the retirement plan industry?
Answer: Recent research from Cerulli Associates forecasts nearly 40% growth in the number of 401(k) plans by 2030, primarily based on the federal and state efforts that you mention. That translates to one million new plans. By comparison, Cerulli has estimated there were 668,419 total 401(k) plans as of the end of 2022. This is great news for the retirement plan industry, as the Boston College Center for Retirement Research statistics estimates that about 33% to 50% of private sector workers are not currently covered by a workplace retirement plan.
