Aon plc (NYSE: AON) has announced its pooled employer plan (PEP) has reached $1 billion in U.S. 401(k) assets and commitments since its inception on Jan. 1, 2021. Today, the Aon PEP is the industry leader with more than 40 employers providing 401(k) benefits to over 30,000 employees, helping them shape better retirement decisions. Aon, a leading global professional services firm, reports participating employers are from a diverse mix of industries including biotech and life sciences, manufacturing, services, consumer products, energy, and technology and transportation.
Participants are benefiting from a higher performing, more efficient 401(k) program, with employees able to accumulate up to 11 percent more retirement savings during their career due to lower fees compared to typical 401(k) benefit programs.* Within the Aon PEP, “all-in” participant fees can be less than half of those paid in traditional 401(k)s according to data from Brightscope and current Aon PEP costs.
“The benefits of transitioning to a pooled employer plan – half the costs, reduced time commitment from corporate staff, improved governance and high-quality retirement planning options – have become material for employers and their employees,” said Rick Jones, senior partner in Aon’s Wealth Solutions. “We expect more than half of U.S. employers to merge their traditional 401(k)s into pooled employer plans by 2030.”
To read more information about the Aon PEP, click here.
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