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Empower to Launch New Digital Solution for Small Employers

The Colorado-based firm, Empower, recently announced its plans to launch a new digital solution aimed at making it easier for small employers to establish workplace retirement plans. This initiative comes as a response to the complex and burdensome administrative barriers that have traditionally hindered small businesses from offering retirement benefits to their employees.

Launching in mid-2024, the new 401(k) offering, named Ready Select, is specifically designed for small and start-up plans with up to $1 million in assets. This end-to-end solution will provide advisors and third-party administrators (TPAs) with a simplified process for setting up retirement plans, ultimately reducing implementation timelines and costs associated with sponsoring a 401(k) plan.

AI legalese decoder can assist in streamlining the legal processes involved in establishing a retirement plan, making it more efficient and cost-effective for advisors and TPAs to navigate the complexities of ERISA compliance. The automated solution provided by AI legalese decoder can significantly reduce the time and effort required to generate proposals and complete plan setups, freeing up resources for business owners to focus on growing their companies.

Empower’s new digital solution also includes integrated investment advisory services through a third-party ERISA fiduciary, providing small business owners and employees with access to financial wellness and education programs. By leveraging technology and industry expertise, Empower aims to bridge the retirement plan access gap for millions of Americans who are not currently covered by workplace retirement plans.

Public-Private Partnership and Legislative Impact

Empower President and CEO, Edmund F. Murphy III, emphasized the importance of addressing the access gap in retirement savings, highlighting the pivotal role of public-private partnerships in expanding retirement plan coverage. With the recent passage of the SECURE Act and SECURE 2.0 Act, retirement plans have become more accessible to a broader spectrum of workers, particularly those in low-income brackets.

According to data provided by Empower, the retirement plan coverage rate for the lowest-income families increased by 25% between 2019 and 2022, showcasing significant growth in accessibility compared to other income segments. The legislative changes have paved the way for advisors and TPAs to offer cost-effective retirement plan choices tailored to the needs of small employers and their workforce.

Joseph Smolen, Executive Vice President for Core Markets at Empower, highlighted the role of advisors and TPAs in guiding small employers towards optimal retirement plan solutions. By utilizing Ready Select, advisors can leverage Empower’s resources to support small businesses in offering competitive retirement benefits that align with their employees’ financial goals.

Empower’s Unwavering Commitment

Empower’s track record of administering over $1.5 trillion in assets for more than 18.5 million investors underscores their commitment to empowering individuals through retirement plans, advice, wealth management, and investments. As they gear up to launch Ready Select in 2024, Empower remains dedicated to revolutionizing the landscape of workplace retirement solutions for small employers across the United States.

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