On Thursday, Betterment’s 401k business announced a partnership with Lumity, a modern employee benefits and health insurance marketplace.
Betterment will serve as Lumity’s preferred 401k partner, allowing Lumity clients to provide their employees with access to Betterment’s retirement plan and financial wellness tools.
Lumity customers will also receive a discount on their monthly plan participant fee for two years—” an added financial benefit and part of Betterment’s commitment to increasing transparency and accessibility to retirement planning,” according to the companies.
As mid-sized businesses scale, a key method to support workers and attract talent is to provide a high-quality, cost-effective employee benefits package, they add.
In partnership with Betterment, Lumity “is making it simple for employers to find and offer a great 401k that lets employees plan for retirement in full view of their other financial goals.”
Financial, physical health in COVID
Supporting employee health, both financially and physically, has increased over the past year. A 2020 survey from PWC found that finances are the top source of stress in many employees’ lives, and millions of Americans continue to struggle with medical debt, an issue that only deepened during COVID-19.
The financial and health issues that many consumers have faced during the pandemic have made it clear to businesses that top-notch retirement planning and health insurance benefits are two areas well worth investing in.
“COVID-19 has increased financial, physical, and emotional stress for many employees, and employers are tuned into this as they consider their benefits strategy. During our planning sessions with our clients for 2022 benefits, financial wellness is front and center, so the partnership between Betterment and Lumity made perfect sense,” Amit Ahluwalia, National Employee Benefits Practice Leader at Lumity, said in a statement. “Betterment brings transparency to the 401k business in the way that Lumity delivers transparency to benefits insurance. Between our two companies, there’s a great alignment of values and shared commitment to deliver a better benefits experience to employers and employees.”