Over the past six years, 50 investment management companies have opted out of providing 401(k) plans, and more will continue to consolidate or exit the business, according to New York Life Investment Management (NYLIM). Scale, money and resources to keep the business afloat are the key factors prompting providers to leave.

"The landscape of the business is forever changing, and the nature of keeping up with everything is costly," said Geoff Bobroff, president of Bobroff Consulting in East Greenwich, R.I. Unless a provider is able to sustain assets and grow the business, then it is hard and not worth the effort, he said.

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