If your business doesn’t offer workers a 401(k) plan, maybe now is the time

The retirement savings landscape is undergoing significant transformations. Financial institutions are striving to expand the market by encouraging more employees to invest in 401(k) plans and similar savings accounts. As people are living longer in retirement, their retirement savings need to endure for a more extended period. Moreover, an aging population could strain public sector retirement programs like Social Security.

However, the Trump administration is promoting new savings accounts for children, indicating a shift in priorities. Jeff Schneble, CEO of Human Interest, a digital 401(k) program administrator catering primarily to small and midsize companies, has been contemplating various scenarios in his role. Human Interest offers a comprehensive retirement solution, boasting greater automation and reduced administrative burdens for participating companies.

Schneble recently discussed his vision for the future of retirement with Inc.'s Mike Hofman. He joined Human Interest as a board member and later became the CEO, joining a company at a modest scale with a few employees and $200,000 in revenue. Schneble was drawn to the opportunity to build a substantial and significant company, as retirement savings are essential for everyone due to longer retirement spans and the need for financial security.

Initially, Human Interest focused on digital marketing to test the product's viability, primarily targeting small businesses with fewer than 100 employees. The company's goal was to create an offering that facilitated easy enrollment and usage for these businesses. Over time, Human Interest grew to become the market leader in first-time 401(k) plan sales, accounting for 37% of such plans in the country.

Although businesses at various stages of growth can benefit from offering retirement plans, Human Interest primarily serves smaller companies. The company's customer base is diverse, ranging from one-person businesses to large organizations, such as Amazon delivery drivers who have 100,000 participants in their retirement plan.