Vestwell, the modern Fintech engine powering savings and investment programs for small businesses and individual savers, recently announced that 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.”
Aaron Schumm, Founder and CEO of Vestwell, said:
“There’s a monumental shift happening in the retirement industry. 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.”
Virginia529 CEO, Mary Morris, said:
“There is a growing retirement savings gap in Virginia. 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.”
Douglas Magnolia, President of Vestwell, remarked:
“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. 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.”
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.”
As noted in an update shared with CI, Vestwell “is the modern fintech engine powering savings and investment programs for small businesses and individual savers across the country.”
They’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.”
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.”