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Vestwell Retirement Trend Report Showcases Demand For Savings in 2023

Vestwell Retirement Trend Report Showcases Demand For Savings in 2023

New York, New York – January 30, 2023 – Vestwell, a leading small business retirement provider and individual savings platform, today announced the results of its fourth-annual Retirement Trends Report. The 2023 survey highlights key trends in the retirement industry from financial advisors, employees, and small businesses.

Vestwell’s Retirement Trends Report showcases that small business employers across the country are looking to expand their benefits offerings to meet the demand from their employees who seek access to additional savings opportunities. The report found that an overwhelming majority of employees surveyed rank employer-sponsored retirement programs and employer matching as high priority.

“Regulatory tailwinds and advanced technologies have enabled a monumental shift in the industry, expanding retirement access to small businesses and savers that are historically difficult to reach,” said Aaron Schumm, founder and CEO of Vestwell. “Gaining a deeper understanding of their needs and saving priorities supports our business and our advisor community to personalize offerings and better serve our clients.”

Financial wellness was a key theme throughout the survey, with both employers and employees seeking additional savings benefits through the workplace. An overwhelming majority of both small business employers and employees (90%) are interested in utilizing the support of a financial advisor to guide them through their options. In fact, 47% of employers believe that advisors add the most value when educating employees about 401(k)s and investment decisions.

“It’s clear that small business owners see the value that the expertise of a financial advisor can bring to their business. In today’s competitive market, it’s essential for small businesses to attract and retain top talent. Working with a financial advisor not only sets these businesses up for success, they can also support the growth of their benefits offerings as their businesses grow,” added Schumm.

The survey found that financial advisors are expecting significant practice growth in the small plan 401(k) market in the coming year. 40% of advisors anticipate their practice to significantly grow as a result of the rapid expansion of the small plan market, due to state mandates, tax incentives, and other factors. More than half (55%) of financial advisors surveyed are utilizing managed accounts to better serve their clients and 18% of advisors who do not currently offer managed accounts intend to introduce them in the next year. Many advisors are also looking to expand their offerings to include new savings vehicles. 46% of advisors are interested in health savings accounts (HSAs), 529 plans (32%), and emergency savings accounts (19%) in 2023. Nearly a third of employers are also looking to expand their employee benefits, with the overwhelming majority (66%) interested in offering HSAs.

“Financial advisors have an incredible opportunity to harness the momentum in the industry for their own practice growth. We’re seeing those who offer personalized investment options, such as managed accounts, and look to expand their offerings with college, health, and emergency savings will have a significant competitive advantage,” added Schumm.

Vestwell conducted a series of surveys in the summer and fall of 2022 to identify the ways in which technology and new savings products are transforming the retirement industry. The firm surveyed nearly 1,300 employees, 500 advisors, and 250 small business owners across the country. 

To learn more about the Vestwell Retirement Trends Report, please visit our website.

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About Vestwell

Vestwell is the modern fintech engine powering savings and investment programs for small businesses and individual savers across the country. We’re helping to close the savings gap by offering a flexible, cost-effective, modern solution to save for the critical aspects of life -retirement, education, and healthcare. Vestwell currently powers nearly 25,000 small businesses, over a million savers, and $27 billion in assets in all 50 states. To learn more visit vestwell.com.

Media Contact

Nicole Wood at nicole.wood@vestwell.com