Human Interest is introducing a new, faster way for small and medium-sized businesses (SMBs) to purchase and design a new 401(k) plan, in what it says is the “latest step to address problems that have prevented businesses and employees” from saving for retirement.
The San Francisco-based 401(k) and 403(b) provider is now offering Fast Track 401(k), a streamlined process aimed at SMB owners who may be intimidated by industry jargon and costs associated with setting up a retirement plan. A study last year by ShareBuilder 401k found that among 500 small business owners, 24% did not offer a retirement plan because they believed 401(k)s were too costly.
“We spent months researching the needs and challenges of first-time 401(k) buyers and learned that most grapple with anxiety and indecision when required to answer a long series of convoluted questions with little knowledge or confidence,” said Kristina Wallender, chief experience officer at Human Interest, in a statement. “We’ve created a simplified experience that replaces 401(k) jargon with common language, guides users to commonly chosen plan options, and provides contextual guidance to help administrators make confident choices. With Fast Track 401(k), we’ve removed the hurdles that prevent small businesses from starting a new plan.”
Among the features offered with Fast Track 401(k) include recommendations on plan designs that are currently in compliance with industry regulations, transparent pricing, and built-in investment advice, according to a release from Human Interest. According to the provider, its new process should only take 10 minutes for SMB plan sponsors to complete.
The latest feature offered by Human Interest comes after the company announced a cash incentive in June aimed at motivating participants to save for retirement. According to the company, its 3% cash back reward is directed to participants earning $60,000 or less and who have just started saving for retirement.
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