Your 401(k) Data Is Fair Game for Cross-Selling, for the Moment

Emerging litigation and calls for regulatory oversight are catching up to a retirement industry that increasingly relies on participant data to market financial wellness programs.

A growing number of U.S. employers are offering workers financial wellness programs that complement retirement planning and investment help with more basic tools, such as emergency savings and household budgeting. Many employers turn to their retirement plan service providers to do that work; those companies have the expertise and, importantly, access to employee data that can inform service needs and funding goals.

But several recent lawsuits contend that, when those third-party providers use a participant’s ...