401GO is launching a program that will match financial advisors with plan sponsors who offer 401(k) plans.
GoConnect is part of a larger, multi-faceted practice management initiative “aimed at adding value beyond 401(k) recordkeeping,” the retirement plan provider said in a statement. Some of these initiatives will include benchmarking, lead generation, and marketing consulting services.
Stan Smith, chief growth officer at 401GO, and who will be leading the new platform, believes the firm’s affiliations with 401(k) plan sponsors and advisors presents an opportunity for it to provide better connections with both partners. While 401GO works with advisors as their primary distribution channel, it also collaborates with businesses who are establishing their own retirement plans without an advisor.
“Given 401GO’s role in the fintech ecosystem — working closely with both 401(k) plan sponsors and financial advisors — we are in a great position to know which pairings are most likely to succeed and produce real synergies,” he said.
Findings from a 401(k) Literacy Study by Pontera in 2024 found that participants who work with a financial advisor feel better informed and contribute more to their retirement savings.
They surveyed showed that 90% of advised respondents believe their 401(k) allocations are aligned with their overall financial plan, versus 75% of non-advised respondents. Furthermore, 66% of advised participants contribute the maximum to their workplace account, compared to 40% among non-advised.
Another study by Northwestern Mutual reported that 75% of Americans who work with an advisor say they expect they’ll be ready for retirement, compared to 45% of employees who have not sought out financial advice.
“It’s been shown that providing employees access to a financial advisor results in a significant increase to 401(k) contribution and participation rates,” Smith added. “In addition, making that benefit available improves employee recruiting and retention. Everybody associated with these partnerships benefits.”
Founded in 2019 and headquartered in Sandy, UT., 401GO specializes in retirement planning solutions for small and medium sized businesses (SMBs).