Just one in 10 of advisors’ wealth clients originate from a retirement plan relationship
October 6, 2026, BOSTON—New research from Cerulli Associates and Morningstar finds that just over 10% of advisors’ wealth clients, on average, come from the “Bridge to Wealth,” a systematic approach to converting defined contribution (DC) plan participants into wealth management clients. While this has been of greater interest for wealth managers that are seeking new avenues of organic growth, advisor adoption still lags in scalability and efficiency.
As firms increasingly view retirement plans as a source of future wealth management growth, advisors face several structural barriers to building a scalable strategy. According to the research, advisor capacity constraints, high-touch engagement models, asset minimums, fragmented technology, and limited access to participant data all make it difficult to connect participants with the advice they need.
“Growing a wealth management practice organically can be very challenging, so advisors may be missing out on warmer leads that exist within DC plans whom they already have relationships with,” says Chris Bailey, director at Cerulli Associates.
Five Key Pillars
To provide a roadmap toward a stronger, more effective Bridge to Wealth, the research identifies five key pillars that retirement industry decision-makers must focus on:
- Strong Advisor Buy-In: Advisors have been hesitant to work with DC plans because they view them as lower-margin, operationally complex, and difficult to source. Without the plan relationships in place, there is no bridge to cross.
- A Scalable Process: Nearly 40% of advisors are not starting or growing a wealth management practice because they don’t have the time to prospect for wealth clients in their DC plans. They recognize the Bridge to Wealth opportunity but struggle to scale it, as traditional relationship-based prospecting is time-intensive and difficult to replicate.
- A Comprehensive Support Ecosystem: Financial advisors surveyed by Cerulli agree that they need more resources from their firms to better execute on the Bridge to Wealth. They cite prospect identification (43.7%) and client conversion (53.4%) as two of the most valuable forms of support their firms can provide.
- Foundational Technology: While technology is essential to scaling the Bridge to Wealth, advisors report that they often lack the time and resources to assess and deploy new tools.
- Accessible and Actionable Participant Data: Advisors need better access to participant data and clearer guidance on how to use it effectively.
“Advisors don’t need convincing that the Bridge to Wealth is worth building. They need the tools to build it without adding headcount or hours,” says Brock Johnson, president of Morningstar Retirement. “That’s why we collaborated with Cerulli—to pinpoint where the industry stands and where advisors are getting stuck. This research tells us exactly where the gaps are, and it will shape how we deliver services, data, technology, and support to help advisors and their firms execute.
As firms look to retirement plans as an effective source of wealth management growth, the path forward will vary based on their business model, client base, and capabilities. The white paper explores several models that firms are using to approach this challenge and provides practical insights for building a more scalable participant-to-client strategy. Read the full white paper here.
These findings and more are from Cerulli’s white paper: Building the Bridge to Wealth, released in partnership with Morningstar Investment Management LLC.
ABOUT CERULLI ASSOCIATES
For over 30 years, Cerulli has provided global asset and wealth management firms with unmatched, actionable insights.
Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.
ABOUT MORNINGSTAR, INC.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $375 billion in assets under management and advisement as of June 30, 2026. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on LinkedIn @Morningstar.
