Penelope aims to help 60 million Americans build bright financial futures and generational wealth with employee retirement platform
On a mission to enable every small business to build bright financial futures for their owners and employees, Penelope announced the launch of its 401(k) platform, giving small business owners an affordable and accessible way to help their employees plan and invest for retirement.
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Ted Benna, widely known as the “father of the 401(k)” who pioneered its mass adoption in the late 1970’s and is an advisor to Penelope said, “I’ve helped a lot of small businesses in my lifetime, as well as running my own business, and for many of them, the idea of offering a 401(k) was out of reach, expensive and confusing, filled with jargon and too time consuming. Now there is a better way. Penelope provides plans that are easier to understand and economically make sense for small businesses and startups.”
One in four Americans have no retirement savings and, amongst those who do, many are not saving enough for retirement. With Social Security projected to be depleted by 2034, there is a crisis brewing for many Americans. California, Illinois and Oregon now mandate that small businesses offer a qualified retirement plan, with several states introducing similar legislation.
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“As the daughter of immigrant business owners, I watched my parents work tirelessly to provide for our family and their employees. Their sacrifices over several decades enabled us to participate in the American dream, but there were still many barriers for them to invest in their retirement,” said Jean Smart, CEO and Founder of Penelope. “After spending my career in financial services, I wanted to take what I learned about savings, retirement products and generational wealth building to disrupt an outdated model that doesn’t work for most people. Saving through a Penelope 401(k) is the first step to becoming an investor, for your own retirement and for the next generation,” said Jean Smart, CEO and Founder of Penelope.
A low-cost 401(k) subscription model, Penelope’s technology platform automates employee investing, streamlines costs and paperwork, and provides practical savings tools for employees. Built specifically for micro and small businesses, Penelope eliminates the hidden fees and complexity of a traditional employer 401(k) plan. As a Pooled Employer Plan (PEP), multiple small businesses can join forces, decreasing fiduciary liability and reducing the administrative burden. Penelope aims to revolutionize generational wealth building at scale, initially focused on companies with less than 100 employees, and over time the goal is to broaden our product features and serve larger companies, individuals and solopreneurs.
“Penelope has created a scalable solution to create accessible retirement savings vehicles for millions of Americans who own or work for small businesses and startups. Their new fintech product serves a largely untapped segment of the market that is growing and trying to build the assets they need to be able to retire”, says Austin Clements, Managing Partner at Slauson & Co, a venture capital firm focused on early-stage startups driven by its mission of economic inclusion, and an early investor in Penelope.
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