BlackRock Inc. is partnering with Human Interest, a 401(k) startup, to expand access to retirement plans for small and medium-sized businesses across the U.S., and is making a minority investment in the San Francisco-based company.
The asset manager is also leading a financing round to support Human Interest's next growth phase, the firms said in a press release on Friday.
Human Interest, which offers 401(k) plans to small and midsize businesses, says it uses technology to make setting up and administering a retirement plan easy and affordable. The company, founded in 2015, has seen over 400% growth in customers and revenue since the initial closing of its last announced financing in 2021.
BlackRock's investment will help the business continue to enhance its capabilities and mature its operational processes and infrastructure, while BlackRock shares its experience and expertise, the companies said.
AARP found that about 57 million people — nearly half of employees ages 18 to 64 in the private sector — lack access to an employer-provided pension or retirement savings plan, according to the release. Small and medium-sized businesses that don't offer retirement plans due to high costs, complexity and administrative burden account for much of the issue, the firms said.
