Retirement plan administrators and record keepers are looking to business process outsourcing and integrated compliance solutions as a way of improving efficiency and boosting growth, according to financial services technology firm SunGard, which identified a number of key trends impacting the retirement services industry.

“Retirement plan administrators and record keepers need improved efficiency, better access to information, and innovation to help grow the business rather than just sustain the business. As a result, many are looking to business process outsourcing and integrated compliance solutions to help streamline operations, and advisor tools to help participants meet their retirement income goals,” said Mike Rogalski, president of SunGard's wealth and retirement administration business.

As a rising number of Americans struggle to save for retirement, plan administrators and record keepers face increasing business costs, continuing regulatory change, and pressure to differentiate their offerings. 

SunGard said that retirement record keepers are seeking managed service offerings to help control costs, scale businesses efficiently, and simplify and streamline retirement plan administration.

In order to reduce the cost of compliance and help employers meet their increased responsibilities amid regulatory change, retirement plan administrators will look to provide standardized fiduciary, compliance and reporting solutions, SunGard said.

Discussing the role of advisors in retirement planning, SunGard said: "As advisors play a larger role in individuals’ retirement planning, retirement administrators will invest in data, analytics and productivity tools to help advisors enhance service to participants."

SunGard believes that with the majority of Americans unprepared to fund their retirement, providers are placing a higher priority on offering retirement readiness support, including income projection tools and guaranteed income products.

The firm concluded that record keepers and advisors will seek growth through innovation by engaging younger participants, while the larger retirement plan providers will look globally to achieve growth in new markets such as Latin America, Asia and the Middle East.