Features: Vestwell offers the following:
- For financial advisors, the company provides a simpler way for advisors to scale their retirement business with a white labeled, plug and play solution. Advisors can create proposals in minutes, use off the shelf or custom models, and offload fiduciary responsibilities to Vestwell who also handles rebalancing and behind-the-scenes operations. The Vestwell platform is fully white-labeled.
- For employers, Vestwell combines technology with human advice to facilitate the creation and running of a retirement plan. The platform offers employers streamlined administration, fiduciary oversight, flexible investment options, custom plan designs, and transparent pricing.
Basic pricing
: Vestwell charges a management fee ranging from 0.16% to 0.60% of the client’s total net assets under management.For more information, read the research on Vestwell provided by WealthTech Club.
Financial Engines
Financial Engines is a B2B/B2C company founded in 1996. The company has launched an online advice platform intended to transform the way people plan, save, and invest for retirement, regardless of their wealth or expertise.
Features
: Financial Engines offers the following:- Financial planning based on unique goals.
- Investment management of 401(k) plans, IRAs, and taxable accounts.
Basic pricing
: Financial Engines charges the following fees:- $25 per plan per year for online advice.
- up to 0.75% of AUM quarterly for professional management of IRAs.
- up to 120 bps on AUM for its Personal Advisor service (with a minimum annual fee of $900).
Empower Retirement
Empower Retirement is a B2B/B2C retirement services provider formed in 2009. The corporation focuses on helping people achieve financial independence, and offers clients investment advisory, financial planning, and consulting services.
Features
: Empower Retirement provides the following services:- For individuals, retirement services to find the best options and strategies.
- For employers, a better retirement experience for employees.
- For financial professionals, financial software tools and guidance, relationship management, training, plan administration, etc.
Basic pricing
: Empower Retirement charges from 0.35% to 1.0% of AUM for advisory services.Human Interest
Human Interest (formerly Captain401) is a B2B company whose platform enables small businesses to set up 401(k) plans to their employees.
Features
: Human Interest offers the following services:- Automated administration, including creating employee accounts and processing contributions.
- Investment advising, i.e. helping employees to understand how much to contribute and how to allocate their assets.
Basic pricing
: Human Interest charges the following fees:- Employers pay a base price of $120 per month and $4 per employee per month.
- Employees pay 0.50% of their account balance per year.
FeeX
FeeX is a B2C software company founded in 2012 with a focus on bringing transparency to retirement accounts. FeeX has developed technology to capture, normalize, analyze and compare various financial products, including 401(k), 403(b), 401(a), 457, PSP, and IRA plans.
Features
: FeeX provides automated and personalized in-depth analysis for retirement accounts, scans accounts for hidden fees, and offers advice on how fees can be reduced or even eliminated.Basic pricing
: FeeX does not charge system users; instead, it has referral arrangements with financial service providers who compensate FeeX for referring users.Ubiquity Retirement + Savings
Ubiquity Retirement + Savings is one of the first flat-fee-for-service, small-business plan providers. Founded in 1999, the company introduces savings plans such as 401(k) and HSAs and helps small companies and employees save for a more financially secure and healthy future.
Features
: Ubiquity Retirement + Savings helps small and startup firms and their employees benefit from tax-deferred retirement savings. The offering includes Safe Harbor plans, Pre-tax and Roth contributions, and customizable options for incentivizing key employees.Basic pricing
: The company offers the following pricing options:- $215 per year for employers with no full-time employees other than the business owner and spouse.
- $115 per month for small businesses and startups looking for simplicity, low fees, and tax savings.
- $165 per month for businesses owners who want to maximize their tax savings at lowest possible fees.
Bottom Line
When choosing a digital retirement service provider, several aspects are worth considering in addition to services and cost. These include projections modeling, the level of investor interactivity, and the ability to make changes to the plan and goals. Moreover, users of a retirement software platform may need technical support, so it helps if the technical support team has financial expertise as well to being able to help users with their issues.
Vasyl Soloshchuk, CEO and co-owner at INSART, FinTech & Java engineering company. Vasyl is also author of the WealthTech Club blog, which conducts research into Fortune and Startup Robo-advisor and Wealth Management companies in terms of the technology ecosystem.