Vestwell selected to power seventy-five percent of states with retirement programs, serving over three million people
NEW YORK, NY, June 2, 2022 - Vestwell, the modern fintech engine powering savings and investment programs for small businesses and individual savers across the country, today announced the Commonwealth of Virginia has selected it as the program administrator for RetirePath VirginiaSM. The partnership will provide Virginians with access to a workplace retirement plan through their employer and marks Vestwell’s fifth selection to administer state-facilitated retirement programs. Once all state programs are live, Vestwell is expected to power over three million savers.
“There’s a monumental shift happening in the retirement industry,” said Aaron Schumm, Founder and CEO of Vestwell. “We’re seeing more and more states playing a central role in closing the retirement savings gap across the country. We’re proud to partner with states like Virginia who are pioneering the way small businesses and their employees will achieve a secure financial future.”
Today, one in four adults in the United States do not have any retirement savings. States and their private-sector partners have proven to effectively serve small business employers with an affordable and user-friendly savings solution for their employees.
In April, Vestwell won a bid to power Colorado Secure Savings Program and New Mexico Work and $ave. Vestwell also powers Oregon, Maryland, and Connecticut’s state retirement savings programs. Virginia is the latest state to select Vestwell as its state retirement program administrator.
State legislation directs Virginia529SM to establish and oversee the RetirePath Virginia program. As part of that process, Virginia529 selected Vestwell as the program administrator and BlackRock as the primary investment manager for RetirePath Virginia. Vestwell, in partnership with BNY Mellon, will provide recordkeeping, custodial services, and customer support to participating RetirePath Virginia employers and employees.
“There is a growing retirement savings gap in Virginia,” said Virginia529 CEO, Mary Morris. “Our partnership with Vestwell and BNY Mellon combines the strengths of three organizations — the nimble approach of an innovative fintech, the stability of one of the oldest banks in the country, and the experience of the country’s largest 529 program — to provide a user-friendly, cost-effective, secure and reliable platform to address that gap. RetirePath Virginia is a logical expansion of the Virginia529 mission, boosting access and promoting financial wellness to even more Virginians.”
“Vestwell is the only fintech company that partners with state governments to offer a personalized savings experience, spanning across all savings vehicle verticals, while leveraging smart learning and modern APIs to reduce the administrative burden for states and small businesses alike,” said Douglas Magnolia, President of Vestwell. “Our experienced team, along with our modern, state-of-the-art platform sets us apart from competitors, which is why we have been selected to be the engine behind seventy-five percent of the state-run retirement programs that will be launched soon, making savings more affordable and accessible for millions of Americans across the country.”
RetirePath Virginia’s pilot program is scheduled to begin in early 2023 and phased enrollment will start by July 1, 2023. RetirePath Virginia will be simple to administer and fee-free for employers. Employee participation will be voluntary. To learn more about RetirePath Virginia, visit Virginia529.com/retire.
Vestwell’s modern technology sits at the intersection of financial services, payroll providers, and state partnerships, and is expected to achieve three times the client growth for the second year in a row in 2022. The firm now administers six state-facilitated retirement programs, has strategic partnerships with BNY Mellon, Franklin Templeton, and Morgan Stanley, and recently signed an exclusive agreement with Patriot Payroll.
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.
Virginia529 makes education more accessible and affordable for families and individuals. With more than $97 billion in assets under management and 3 million accounts as of March 31, 2022, Virginia529 is the largest 529 plan available. Two flexible, affordable, tax-advantaged programs–Invest529SM and CollegeAmerica®–and early commitment scholarship program SOAR Virginia®–assist students of any age in reaching their higher education goals. For more information on Virginia529’s college savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials. These include information on Virginia529 programs, investment objectives, risks, charges, expenses and other important information; read and consider them carefully before investing. All investments are subject to risk, including the possible loss of the money you invest. Virginia529 encourages prospective participants to seek the advice of a professional concerning any financial, tax or legal implications related to opening an account. For residents of states other than Virginia: before investing, you should consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protections from creditors that are only available for investments in that state’s qualified tuition program. ©2022 Virginia College Savings Plan. All Rights Reserved.