Betterment's 401(k) Business Achieves Record 2020 Growth, Doubling Retirement Plan Count Through New Online 401(k) Purchasing Tool

NEW YORK, April 21, 2021 /PRNewswire/ -- Betterment's 401(k) business, the technology-led 401(k) provider, today announced record growth attributed to its new online sign-up tool. Since the product launch a year ago, over 300 businesses have bought 401(k) plans through their online workflow. Using the tool, employers may purchase a customized, high-quality 401(k) plan for their employee base directly through Betterment's 401(k) website in five minutes or less. Betterment's 401(k) business has now signed up almost 1,000 small to medium sized companies, with nearly 60% of total plan growth during the past year attributed to the online workflow.

The traditional 401(k) sales approach, which typically involves a series of calls or in-person interactions with salespeople, has long been a pain point for businesses looking to get a retirement plan up and running quickly. This lengthy sign-up process is often a deterrent to providing a 401(k), particularly for time-strapped small to medium business owners with no dedicated HR staff. Leveraging the expertise and best practices they've developed over five years of selling defined contribution plans, Betterment's 401(k) business was able to create an intuitive workflow that saves companies time and effort.

Betterment's online purchasing option, designed to be incredibly streamlined yet effective, allows employers to quickly navigate through a series of questions designed to create a 401(k) plan that is tailored to their unique organization, industry, and employee demographics. The result is a customer-first experience that automates plan selection without sacrificing the quality of service. Companies of any size, from those with as few as two employees to over 1,000 employees, can benefit from the streamlined, modern sign-up process — a first of its kind within the 401(k) space.

"Our goal is to use automated technology to simplify and improve every aspect of the 401(k) experience for both employees and employers — and that starts at plan sign-up. We designed the online tool to better serve customers of all sizes, and support hardworking small business owners so that they can give their employees access to high-quality benefits with less effort and at a lower cost," said Kristen Carlisle, General Manager of Betterment's 401(k) business. "At Betterment, we believe that every company deserves access to a great retirement plan, regardless of the size."

In addition to a great 401(k), employees also receive personalized, straightforward investment advice within an intuitive interface that can sync with their primary Betterment account. Betterment provides goals-based investing portfolios including socially responsible options, access to no-fee‡ checking and high-yield cash accounts, other retirement accounts like IRAs, and additional tools that make it easy for employees to save for goals outside of retirement. For plan sponsors, Betterment's 401(k) simplifies and fully manages employee retirement planning including client services, dashboards, custodial services, ERISA consulting, compliance, and Form 5500 preparation.

This comes on the heels of a busy period of momentum for Betterment's 401(k) business, which recently announced partnerships with Zenefits and Bennie that expand Betterment's commitment to making high-quality retirement savings plans simple and affordable for companies of any size. For more information or to sign your business up for a 401(k), visit www.betterment.com/401k.

About Betterment's 401(k) business
Betterment's 401(k) platform is built from the ground up with the needs of the modern employee in mind. It's selected by employers who want to offer their employees tailored and smart financial advice that will help them create a more secure future. Betterment's 401(k) platform is powered by Betterment's proprietary, smart technology that automates and optimizes asset allocation to enhance financial wellness. As a fiduciary that is independent of the funds it invests in, Betterment believes that everyone has the fundamental right to expert financial advice. Headquartered in New York City and created by the largest independent robo-advisor, Betterment's 401(k) platform is used by leading employers like Casper and Boxed. For more information, visit www.betterment.com/401k.

Betterment Checking
^‡ Checking accounts and the Betterment Visa Debit Card provided by and issued by nbkc bank, Member FDIC. Funds deposited into Checking are FDIC-insured up to $250k for individual accounts and up to $250k per depositor for joint accounts. Betterment Checking made available through Betterment Financial LLC. Neither Betterment Financial LLC, nor any of their affiliates, is a bank. Betterment Financial LLC reimburses ATM fees and the Visa® 1% foreign transaction fee worldwide, everywhere Visa is accepted. Checking accounts do not earn APY (annual percentage yield). Betterment Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.

Contact
Arielle Sobel
[email protected]

SOURCE Betterment for Business

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