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In the world of investment sales, growth is the name of the game Right now, defined contribution retirement plans, especially 401(k)s, are where the momentum is.
While many sales teams zero in on institutional consultants, wirehouses, and RIAs, few have built a dedicated strategy around one of the largest and fastest-growing channels out there: the $12 trillion 401(k) market.
If you’re distributing investment products and looking for scalable, long-term AUM, it’s time to start paying attention.
As of Q1 2025, the U.S. retirement market has reached an estimated $43 trillion in total assets. Of that, defined contribution plans, primarily 401(k)s, account for $12.2 trillion (source). That’s nearly 30% of the entire retirement landscape.
Today, there are over 715,000 active 401(k) plans supporting more than 70 million participants. And the market is only expanding, thanks in part to new state-run auto-enrollment programs that make retirement plans more accessible for small businesses and underserved populations.
In this article we’ll discuss why 401(k) plans are becoming a hot topic for investment sales. By the end of this, you’ll have a better understanding.
Despite its scale, the 401(k) space remains surprisingly under-penetrated by investment sales teams. While many firms have well-defined approaches to RIAs or consultants, far fewer have invested in a true strategy for defined contribution plans.
That’s a missed opportunity.
Selling into 401(k)s is different. It’s complex, relationship-driven, and highly specialized. Success hinges on understanding the full ecosystem: plan sponsors, recordkeepers, retirement consultants, RIA aggregators, and increasingly, pooled employer plans (PEPs).
The complexity is real, but so is the reward. There are fewer wholesalers in this space, which means less competition and more potential for sticky, recurring AUM.
Understanding who to call is only part of the puzzle. You also need to understand what’s being sold.
Historically, mutual funds have dominated the 401(k) world, especially in small and mid-sized plans. But in recent years, Collective Investment Trusts (CITs) have taken center stage. These low-cost, flexible investment vehicles are now a top choice for large plan sponsors and institutional consultants looking to scale efficiently.
As of early 2025, over $7 trillion in assets are held in CITs, up a staggering 65% from 2024. Even more notable: 84% of all 401(k) plans now offer CITs (source).
If your firm isn’t distributing products through CITs, or at least thinking about it, it’s time to reassess your approach.
There’s plenty of buzz in the market about alternatives, private wealth, and family offices. But let’s not overlook one of the most scalable, consistent, and growing asset channels out there.
Here’s a snapshot of today’s defined contribution landscape:
This growth is fueled by legislation like SECURE Act 2.0, increased retirement access for small businesses, and a larger shift toward retirement readiness across the country.
It’s a strategic market where few are selling, but many are buying. If you know the right players, and bring the right vehicles, you’re positioned to capture long-duration, scalable flows.
This is where Dakota Marketplace comes in.
Our 401(k) plan data helps investment sales teams:
Whether you’re selling into defined contribution or defined benefit plans, Dakota Marketplace makes it easier to get the information you need, fast. All within a Salesforce-native platform designed for distribution teams.
Want to learn more? Book a Demo of Dakota Marketplace.
Written By: Morgan Holycross, Marketing Manager
Morgan Holycross is a Marketing Manager at Dakota.
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