Betterment and Zenefits unite to provide retirement resources for small businesses

Betterment for Business, a 401(k) provider, has teamed up with people operations platform Zenefits to offer small and mid-sized businesses better quality retirement savings plans.

Saving enough for retirement has long been a challenge for employees and the COVID-19 crisis has only exacerbated this issue. However, despite the economic strain presented by the pandemic, 74% of employers say helping employees secure their retirement is still a top priority, according to the TIAA Retirement Insights survey.

Through this partnership, Zenefits’ employer clients will have access to Betterment’s 401(k) plan, as well as a suite of employee financial wellness tools like personalized advice, managed accounts, goals-based investing portfolios, no-fee checking and high-yield cash accounts and additional retirement accounts like IRAs.

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“Zenefits has such a strong focus on financial wellness for small and mid-sized businesses, which have largely been ignored by the retirement industry, yet employ almost half of the U.S. workforce,” says Kristen Carlisle, general manager of Betterment for Business. “Coupling with Zenefits can really help these startups and small to medium sized businesses feel secure and reduce [their] administrative burden [when] providing benefits to their employees.”

Access to more sophisticated financial wellness and retirement tools can be limited for these employers, Carlisle says. Betterment’s 401(k) pairs with personalized financial advice that can help employees achieve a more secure retirement.

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“It really comes down to making sure that employees have access to more than just a 401(k),” she says. “It's really about advice and personal planning. Employers are recognizing that they play a critical role in making these benefits accessible.”