Evolving Technology Can Drive Retirement Plan Innovation

For many individuals, the path to retirement is not linear. Life gets in the way. Investment needs and objectives evolve. Saving for retirement is impacted by competing financial priorities, from credit card debt to the cost of college, and individual circumstances vary widely.?

Savings strategies, asset allocation choices and retirement income plans arguably have the biggest impact on individual retirement outcomes. Yet, investors’ needs are so diverse that customization is necessary, driving plan sponsors and advisors to seek better solutions.

Luckily, technological advancements are making cost-effective, personalized retirement solutions more compelling, impactful and widely available. Technology is rapidly evolving to create retirement planning experiences with flexibility to add strategies and help improve outcomes for retirement plans and end investors.?

Widespread adoption of “auto-features” and the use of asset allocation-based defaults have meaningfully moved the needle in terms of retirement preparation for the “typical” participant. The latest technology can help us customize the investing experience.

Today we announced an agreement to acquire NextCapital Group, a digital retirement advice provider. We already work closely with NextCapital within our Workplace Retirement Solution offering, and we look forward to introducing its capabilities to the other relevant parts of our business. This transaction underscores Goldman Sachs Asset Management’s commitment to being the partner of choice for retirement plans and their sponsors, advisors and participants.?

We believe personalized investment experiences are a critical evolution in retirement planning. Millions of participants in employer-based defined contribution plans have made clear that they seek professionally managed solutions that take into account their specific situations. Even with seemingly endless choices of investment options for inclusion in plan menus, few services provide retirement plan investors something in between a diversified fund and a full-fledged advisor relationship.

NextCapital’s open-architecture managed account and digital advice solution provides integrated account aggregation, analytics, planning and portfolio management, and allows partners to customize advice methodology.?

We want to combine Goldman Sachs Asset Management’s leading position across the spectrum of investment capabilities and as the largest outsourced chief investment officer (OCIO) in the US with NextCapital’s managed account solution to deliver the personalization that we think will drive the future of retirement savings.

Upon close, we believe retirement plans and participants will benefit from technological advances that foster a personalized, engaging experience and democratize access to services once reserved for larger customers.?

Goldman Sachs is fortunate to have many of the pieces that help plan sponsors, advisors and participants have better retirement outcomes. We believe NextCapital will help us pull all of this together in a tech-forward, cost-effective, personalized way that combines the best of Goldman Sachs with NextCapital’s platform partners, plan sponsors and their advisors to help today’s investors achieve their retirement goals.?