Pensions & Investments: Online Providers Filling a Void for Small-Employer 401(k)s
Dylan Telerski / 27 May 2019
54% of workers nationwide — or 82.2 million people — do not have access to a workplace retirement plan says the Center for Retirement Research at Boston College. When it comes to small businesses, the numbers are even grimmer.
With employers with less than 100 employees, 70% of them don’t offer a retirement plan. Robo recordkeepers and a new generation of 401(k) providers, including Ubiquity Retirement + Savings, are working to close this gaping hole in the U.S. retirement system.
“The new 401(k) providers have managed to automate everything from record keeping and plan administration to compliance testing and reporting, a level of automation and integration that more traditional record keepers haven’t been able to achieve. While traditional record keepers, too, have made huge investments in technology, they’re hampered by legacy systems that they’re reluctant to jettison.”
Ubiquity underwent a technology overhaul in 2016 and was built “from the ground up” using the Amazon web-services cloud, giving us access to an incredible amount of computing power, data storage, and secure infrastructure for a fraction of the cost.
“I don’t have to charge more because my infrastructure costs are lower,”
-Chad Parks, Founder and CEO of Ubiquity Retirement + Savings