DRESHER, PA—Ascensus, a retirement and government savings plan administration firm, recently announced that it now manages over $1 billion in assets across state-facilitated retirement programs. This milestone underscores the growing importance of such programs in helping small business employees save for their future in a tax-advantaged way, often for the first time.
Ascensus serves as the program administrator for two major players in this burgeoning sector: CalSavers and Illinois Secure Choice. These programs are part of a pioneering group of eight state-facilitated auto-IRA (Individual Retirement Account) programs aimed at bridging the retirement savings gap for workers who lack access to employer-sponsored plans. Impressively, Ascensus oversees 75% of the accounts and assets within this niche, highlighting its dominant role in the industry.
Peg Creonte, president of Ascensus Government Savings, expressed enthusiasm over reaching this financial landmark. “Reaching the $1 billion mark in assets is not just a numerical achievement; it represents nearly 650,000 individuals embarking on their journey to financial security in retirement,” she stated. The rapid growth of these programs, which saw assets more than double since early 2023, reflects a concerted effort between Ascensus and its state partners, Illinois and California, to make retirement savings accessible to more Americans.
The surge in program participation can be attributed to an influx of newly registered employers, signaling a broader acceptance and recognition of the importance of offering retirement savings options. Programs like CalSavers and Illinois Secure Choice, which launched in 2018 and 2019 respectively, have demonstrated remarkable growth within six years of operation.
Ascensus’s role in this sector is part of its broader commitment to facilitating savings across various platforms. The company administers more than 154,000 retirement plans, 44 529 education savings plans, and 23 ABLE savings plans, serving over 14 million savers in total. Besides retirement solutions, Ascensus offers nonqualified retirement plan solutions, corporate- and bank-owned life insurance, fiduciary, and total rewards services.
The significance of Ascensus’s achievement goes beyond the numbers. It highlights a shift towards inclusivity in retirement planning, particularly for employees of small businesses who have traditionally been left out of the retirement savings conversation. By providing a structured, state-facilitated pathway for retirement savings, Ascensus and similar initiatives are playing a crucial role in addressing the retirement savings crisis in the United States.
As state-facilitated retirement programs continue to gain traction, they offer a promising model for expanding retirement savings access to millions of Americans. This development could have profound implications for the financial wellness of the nation’s workforce and the overall economy, emphasizing the need for innovative solutions in bridging the retirement savings gap.
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