Bundled vs. Unbundled Retirement Plans: What You Need to Know

The bundled vs. unbundled conversation is usually framed around the plan sponsor. At The Asteri Collective, we think bigger.

When you put the Retirement Plan Consultant (RPC) at the center, the plan structure impacts everyone in the retirement ecosystem: advisors, recordkeepers, DCIOs, and sponsors. And when each role can do its best work, plans are stronger, service is smoother, and clients stay longer.

Asteri Collective member companies work with both bundled and unbundled providers, including some of the largest names in the industry. But we also know that, in the right circumstances, an unbundled structure allows every stakeholder to operate at their highest level.

Bundled vs. Unbundled: A Quick Refresher

A bundled plan consolidates recordkeeping, administration, compliance, and investments under a single provider. It’s streamlined and efficient for many situations, and bundled providers are important partners in the industry.

An unbundled plan separates these roles, allowing the plan sponsor (with the RPC’s guidance) to select best-in-class providers for each function. This approach creates flexibility, customization, and alignment across the ecosystem.

The RPC as the Conductor

Think of the RPC as the conductor of a symphony. The recordkeeper, advisor, and DCIO each play a different instrument. In an unbundled plan, the RPC isn’t just keeping time; they ensure every part of the ensemble plays together seamlessly, in tune with the plan sponsor’s goals.

Value for Each Stakeholder in an Unbundled Plan

For Recordkeepers: Stickier Plans, Fewer Service Bottlenecks

When an RPC is fully engaged in an unbundled arrangement:

  • We manage day-to-day plan sponsor questions, compliance issues, and operational needs so you’re not fielding every call.
  • We deliver clean, accurate data feeds that integrate with your systems, reducing rework and error correction.
  • Plans stay on your platform longer because they run smoothly, keeping them “sticky” in a competitive marketplace.

For DCIOs: The Freedom to Deliver the Best Investment Lineup

In an unbundled structure:

  • You aren’t constrained by a bundled provider’s proprietary menu or limited investment shelf.
  • You can place the right investments for the plan’s objectives, the advisor’s strategy, and the participant demographics.
  • The RPC’s plan design ensures the investment architecture is aligned with long-term goals, helping your products perform in the right environment.

For Advisors: More Control, Less Complexity

Advisors benefit from unbundling because:

  • You maintain control over the investment strategy without being forced into a bundled lineup.
  • The RPC handles technical plan design, compliance testing, and operational issues, freeing you to focus on relationships and results.
  • With the RPC coordinating across recordkeepers and DCIOs, you have a partner who ensures your strategy works in practice, not just on paper.

For Plan Sponsors: A Customized, Fully Supported Plan

Plan sponsors get:

  • A structure built for their specific needs, not just what fits in a bundled package.
  • An RPC who serves as the single point of contact, coordinating every moving part.
  • A team that anticipates issues, manages compliance, and keeps the plan evolving with the business.

Why This Matters in a Tech-Forward World

Data drives everything, and when it flows cleanly between stakeholders, everyone wins.

An RPC in an unbundled arrangement can work with recordkeepers to build efficient, integrated data-sharing processes. This isn’t a robo-platform, where human oversight is minimal. This is high-touch consulting powered by smart technology, automation where it helps, expertise where it matters.

The Bottom Line

Bundled providers are key partners, and in some cases, a bundled structure is the right choice. But when a plan, and its ecosystem, need flexibility, custom investment architecture, and high-touch coordination, an unbundled arrangement puts every player in the best position to succeed.

At The Asteri Collective, we place the RPC at the center of it all, acting as the conductor for the recordkeepers, DCIOs, advisors, and sponsors so the plan plays out in perfect harmony.