Vestwell Raises $385M to Power Modern Savings Infrastructure Across America

"With 42% of full-time workers lacking access to employer-sponsored retirement plans and the median American holding just $955 in retirement savings, the nation faces a $50T savings gap that threatens the financial security of tens of millions of workers. This access divide hits small business employees particularly hard - while 82% of workers at large companies have retirement plan access, that figure plummets below 50% for those at firms with fewer than 100 employees."

"Vestwell has emerged as the connective infrastructure powering this transformation, operating the platform behind more than 40 government programs while simultaneously serving financial advisors, payroll providers, and employers through its API-driven recordkeeping system. The company now administers over $50B in assets for more than 2M active savers, recently acquiring nearly 30,000 additional plans through its Accrue 401k purchase and expanding beyond traditional retirement into emergency savings, education accounts, and ABLE programs."

"States have responded by creating 17 mandated auto-IRA programs covering millions of previously excluded workers, but these initiatives require modern infrastructure capable of handling complex payroll integrations, compliance automation, and scalable recordkeeping across fragmented employer bases."

America faces a severe retirement crisis with 42% of full-time workers lacking employer-sponsored retirement plans and median savings of just $955. The gap disproportionately affects small business employees, where plan access drops below 50% compared to 82% at large companies. States have created 17 mandated auto-IRA programs to expand coverage. Vestwell provides the infrastructure powering these government initiatives and serves financial advisors, payroll providers, and employers through API-driven recordkeeping. The company administers over $50B in assets for 2M active savers and recently expanded through acquiring Accrue 401k plans and diversifying into emergency savings, education accounts, and ABLE programs.

Read at Alleywatch