A retirement plan consultant plays a critical role in helping businesses and individuals build compliant, sustainable retirement strategies in 2026. As regulations evolve under ERISA and SECURE Act 2.0, expert guidance is no longer optional. In this guide, you’ll learn what a retirement plan consultant does, how they add value, what they cost, and how to choose the right one.
Key Takeaways
-
A retirement plan consultant helps design, manage, and optimize retirement plans for businesses and individuals.
-
Consultants reduce fiduciary risk by ensuring ERISA and SECURE Act 2.0 compliance.
-
Businesses often rely on consultants to coordinate with a retirement plan TPA and recordkeeper.
-
Fees vary by service model, ranging from hourly advice to AUM-based pricing.
-
Credentials like CFP®, ARPC®, and AIF® signal professional competence and trust.
-
The right consultant can improve employee participation and long-term retirement outcomes.
What Is a Retirement Plan Consultant?
A retirement plan consultant is a certified professional who advises employers or individuals on the structure, compliance, and performance of retirement plans. Their role bridges strategy, regulation, and long-term financial outcomes.
How consultants differ from TPAs and recordkeepers
While a retirement plan TPA or third party administrator retirement plans provider handles compliance testing and filings, consultants focus on plan strategy and fiduciary oversight. A retirement plan recordkeeper manages participant accounts and transactions, but does not typically provide unbiased plan design advice.
Who typically hires a consultant
Mid-sized businesses, nonprofits, and high-income individuals commonly work with consultants to navigate plan complexity, control costs, and align retirement benefits with workforce goals.
Why Does a Retirement Plan Consultant Matter in 2026?
Retirement plans are more regulated and scrutinized than ever. A consultant helps sponsors meet legal obligations while improving outcomes for participants.
Managing fiduciary and legal risk
Under ERISA, plan sponsors must act solely in the best interest of participants. According to the U.S. Department of Labor, fiduciary breaches remain one of the most common causes of retirement plan litigation. A consultant helps document prudent decision-making and fee benchmarking.
Supporting talent attraction and retention
Competitive retirement benefits are now a core part of compensation. Consultants help employers design plans that increase participation and deferral rates, especially among younger and diverse workforces.
How Does a Retirement Plan Consultant Work With Businesses?
Most business-focused consultants deliver structured, ongoing services tailored to employer size and workforce demographics.
Plan design and implementation
Consultants evaluate whether a 401(k), 403(b), SEP IRA, or defined benefit plan best fits the organization. They align eligibility rules, employer matches, and vesting schedules with business goals.
Compliance and vendor coordination
A consultant often acts as the quarterback between the employer, retirement plan TPA, recordkeeper, and investment providers. This reduces errors, missed deadlines, and regulatory exposure.
Investment selection and monitoring
Consultants help build diversified investment menus, monitor performance, and replace underperforming funds. This oversight supports fiduciary compliance and cost efficiency.
How Can Individuals Benefit From a Retirement Plan Consultant?
While many consultants focus on employers, individuals also rely on retirement expertise for personal planning decisions.
Retirement readiness and income planning
Consultants estimate future income needs based on lifestyle goals, Social Security timing, and longevity assumptions. This helps clients avoid under-saving or withdrawing too early.
Tax and withdrawal strategy
In 2026, tax efficiency is a major concern. Consultants advise on Roth conversions, Required Minimum Distributions (RMDs), and sequencing withdrawals to reduce lifetime taxes.
How Much Does a Retirement Plan Consultant Cost?
Fees vary widely based on service scope and complexity.
Common fee structures in 2026
-
Assets Under Management (AUM): 0.25%–0.50% for robo-advisors; ~1.0% for traditional advisors
-
Flat annual retainer: $2,500–$9,200
-
Hourly consulting: $200–$400 per hour
-
Per-plan setup fee: Starting around $3,000
Understanding value versus cost
Lower fees do not always mean better value. A skilled consultant can often offset their cost by reducing plan expenses, improving participation, and avoiding compliance penalties.
How Do Retirement Plan Consultants Compare to TPAs and Recordkeepers?
| Role | Primary Function | Fiduciary Advice |
|---|---|---|
| Retirement Plan Consultant | Strategy, oversight, fiduciary guidance | Yes |
| Retirement Plan TPA | Compliance testing and filings | No |
| Retirement Plan Recordkeeper | Account administration and transactions | Limited |
| CBIZ Retirement Plan Services | Bundled consulting and administration | Varies |
Many employers use all three, with the consultant ensuring alignment and accountability across vendors, including large providers like CBIZ retirement plan services.
What Mistakes Should You Avoid When Hiring a Retirement Plan Consultant?
Focusing only on credentials
Certifications matter, but experience with your plan type and industry is equally important.
Ignoring conflicts of interest
Some consultants receive compensation from product providers. Always ask whether the consultant acts as a fiduciary and how they are paid.
Overlooking communication and education
A technically skilled consultant who cannot educate employees or stakeholders may fail to deliver long-term value.
What Are the Long-Term Benefits of Working With a Retirement Plan Consultant?
The impact of good consulting compounds over time.
Better outcomes for employees
Plans with active consulting oversight often see higher participation rates and better investment diversification, improving retirement readiness.
Reduced risk and administrative burden
Consultants help employers stay ahead of regulatory changes, reducing stress and legal exposure while freeing internal teams to focus on core operations.
Conclusion: Is a Retirement Plan Consultant Worth It?
A retirement plan consultant is more than an advisor—they are a strategic partner in compliance, employee well-being, and long-term financial success. Whether you are an employer managing fiduciary risk or an individual planning retirement income, the right consultant can deliver measurable, lasting value. The next step is verifying credentials, understanding fees, and choosing a consultant aligned with your goals.
FAQs
Is a retirement plan consultant the same as a financial advisor?
No, a retirement plan consultant specializes in retirement plans and fiduciary oversight, while financial advisors often provide broader investment advice.
Do small businesses really need a retirement plan consultant?
Yes, even small employers face ERISA obligations, and a consultant can reduce compliance risk and improve plan design.
How do I verify a retirement plan consultant’s credentials?
You can confirm credentials through the FINRA Professional Designation Database or issuing organizations.
Can a retirement plan consultant act as a fiduciary?
Many consultants serve as ERISA 3(21) or 3(38) fiduciaries, but this should be confirmed in writing.
How often should a retirement plan be reviewed?
Most experts recommend a formal review at least annually, or sooner if regulations or workforce needs change.
