The push for a Unified Managed Household (UHM) continues to gain traction among managed account sponsors, with 52% citing it as a top priority in 2024, up from in 2022. While platform providers have made strides in enabling UMH solutions, sponsors still face resistance from advisors and significant technology integration hurdles, according to the Cerulli Edge – Americas Asset and Wealth Management Edition.
“Things become more complicated when considering how a UMH platform will optimize retirement income and whether Social Security and annuity options should be a part of the core capabilities,” said Scott Smith, director.
To drive adoption, platform sponsors aim to offer a more efficient and cost-effective approach to holistic portfolio management. However, evolving UMH programs present challenges, with 89% of sponsors citing concerns about integrating various technological enhancements and 42% struggling with legacy platform transitions.
“However, sponsors must develop a cohesive strategy on two fronts: technology integration and rollout and advisor engagement and adoption,” added Smith.
Beyond developing new features, ensuring seamless integration with existing systems remains a key hurdle. Some firms have found success by partnering with specialized technology providers rather than attempting to merge multiple proprietary systems. As the industry advances, firms must balance innovation with practical implementation to make UMH solutions viable for advisors and clients.
