March 28, 2017 – Some view an enhanced participant experience as the “next battleground” for retirement plan record keepers.
Two of the largest retirement plan record keepers, Empower Retirement and Fidelity Investments, are growing their health-savings-account businesses, at a time when such accounts are becoming more popular and providers are feeling the pressure to compete on offering participants more holistic financial services.
Empower on Tuesday announced a partnership with the company Optum, a health-plan administrator, to offer HSAs to the retirement provider’s clients beginning this summer.
Participants with such accounts will be able to view their 401(k) and HSA balances in one online portal, and receive some financial-planning guidance around the funding of their retirement and health accounts, said Ed Murphy, the president of Empower Retirement, which administers $475 billion in retirement plan assets.
Fidelity, the largest record keeper of defined-contribution plans, already offers an integrated portal to view health and retirement balances, but only to its largest clients – those with more than 2,000 benefits-eligible participants.
Later this year, at an unspecified time, Fidelity will “begin offering HSAs to select employers with greater than 50 employees,” Eric Dowley, senior vice president of Fidelity’s HSA business, said.
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