Vestwell, a New York-based platform for the modern savings economy, has raised $385 million in Series E funding. The company delivers comprehensive, compliant savings solutions for retirement, education, healthcare, emergencies, student loans, and disabilities to employers, advisors, individuals, and governments. The capital will accelerate platform expansion and innovation in accessible savings.
Employer Savings Funding Surges
The timing aligns with consolidation in retirement fintech. Vestwell recently acquired Accrue 401k, adding nearly 30,000 plans. Meanwhile, competitor Savvy raised $72M in Series C funding in June 2024 to expand its IRA platform, while Origin secured $19M Series B in late 2024 for pooled employer plans.
Massive Retirement Savings Gap Persists
Over half of American workers lack access to employer-sponsored retirement plans, particularly in small and mid-sized businesses numbering over 30 million. Traditional solutions burden employers with high costs, compliance risks, and administrative complexity, leaving trillions in potential savings untapped. Government programs cover only a fraction, with 85% powered by platforms like Vestwell's.
All-in-One Platform Drives Adoption
Vestwell's end-to-end platform spans Safe Harbor 401(k), Solo(k), Pooled Plans, State Auto IRA, 529 plans, emergency savings, and ABLE accounts. Unlike single-product competitors like Savvy's IRA focus, Vestwell integrates retirement, education, and disability savings with payroll providers and TPAs for seamless deployment.
It supports multilingual access in 18 languages, targeting diverse workforces. This breadth enables 500K+ businesses across industries from construction to tech.
As part of its expansion:
"Vestwell is the backbone of the modern savings economy."
This positions it beyond retirement into holistic financial wellness.
Investors Bet on Scale and Compliance
The $385M Series E underscores investor confidence in Vestwell's compliance-first tech amid regulatory shifts like SECURE 2.0. It signals growth capital for acquiring capabilities like Accrue's 401k expertise, differentiating from pure software plays. Total assets now exceed $50B, serving 2M+ savers nationwide.
Retirement Market Hits Trillions
U.S. retirement assets total $38 trillion, with 401(k)s alone at $7.4T growing 10% annually. Pooled Employer Plans (PEPs) are exploding post-SECURE Act, attracting fintechs. Competitors continue funding chase: Savvy's $72M emphasizes state-mandated IRAs, contrasting Vestwell's employer-centric model serving all 50 states.
Vestwell powers over 85% of government retirement programs, highlighting market dominance in public sector.
National Expansion Accelerates
With the Accrue acquisition complete, Vestwell adds scale to its 500K+ business base. It launched a national ABLE Savings Initiative targeting millions with disabilities and rolled out 18-language support. These moves position it for broader adoption amid rising demand for inclusive savings tools.