In what the company is calling an “industry first,” San Francisco-based 401(k) provider Human Interest on June 6 announced it will offer a 3% “cash back reward” to participants making $60,000 or less who start saving for retirement.
“We are using the same rewards model that people enjoy in their daily lives, akin to cash back credit cards, to encourage employees to actively save for a healthy retirement.”
Human Interest CEO Jeff Schneble
Human Interest’s first-of-its-kind cash incentive is designed to increase participation rates in employer-sponsored retirement plans by helping to address near-term financial stressors.
The new incentive is available to all eligible participants on the Human Interest platform making at or below the U.S. median wage of $60,000, according to a press release from the company. The 3% cash back based on participants contributing at least 8% to their 401(k) over a 12-month period, with the minimum award being $100 and max being $250.
“We see the urgent need for more working Americans to save for retirement,” said Jeff Schneble, CEO of Human Interest. “We are using the same rewards model that people enjoy in their daily lives, akin to cash back credit cards, to encourage employees to actively save for a healthy retirement. That is why we are now the first and only retirement provider to offer a cash back program to incentivize individuals to save.”
In addition to the cash back incentive, all Human Interest plan participants will get access to “(k)ickstart,” a proprietary financial wellness curriculum to support their retirement savings journey. The (k)ickstart program provides useful tips and techniques to help participants save for the future and achieve a financially secure retirement.
The company cited research showing that employees are significantly more concerned about their immediate financial commitments than saving for the long term, and said that as a result, almost 80% of Americans do not have sufficient funds for retirement.
This week’s announcement adds to a list of industry-first moves claimed by the company, including eliminating transaction fees back in late 2020. Human Interest now has nearly 16,000 customers and $500 million in funding to date from investors including BlackRock, TPG’s The Rise Fund, and SoftBank Vision Fund. In January, BlackRock and Human Interest announced they would join efforts to expand access to retirement plans to small- and medium-sized businesses across the U.S. by way of BlackRock making a minority investment and leading a financing round to support the next phase of Human Interest’s growth.
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• BlackRock Invests in Human Interest