Betterment Widens Solo 401(k) Push Through Osaic and HUB Advisors

Why It Matters

The expansion targets a massive untapped retirement market, offering advisors a scalable, low‑friction product that can boost fee revenue and client retention. It also aligns with SECURE 2.0 incentives and state mandates, accelerating retirement savings for freelancers and sole proprietors.

Key Takeaways

• 9 million self‑employed lack solo 401(k) plans.
• Betterment expands solo 401(k) to Osaic’s 10,000 advisors.
• Only 15‑18% of self‑employed have solo 401(k) now.
• Platform fee based on AUM; no setup cost for advisors.
• Solo 401(k) max deferral $24,500, catch‑up for 50+.

Pulse Analysis

The solo 401(k) market has long been a niche, hampered by paperwork and limited distribution channels. Yet more than 80% of the roughly 9 million self‑employed Americans operating as sole proprietors or freelancers remain uncovered, according to Federal Reserve data. This gap represents a $200 billion‑plus retirement savings opportunity, especially as SECURE 2.0 expands contribution limits and state retirement mandates tighten. Advisors who can offer a streamlined, digital solution stand to capture a share of this latent demand.

Betterment’s move to partner with Osaic and Hub International leverages the sheer scale of those networks—about 10,000 advisors collectively—to bring its solo 401(k) directly to the front line. The product’s all‑digital design eliminates the traditional administrative burden, while a platform fee tied to assets under management aligns costs with client growth. By not requiring custodial migration of non‑solo‑401(k) assets, Betterment lowers the barrier for advisors to adopt the offering, positioning the firm as a flexible retirement‑plan partner.

For the broader advisory ecosystem, the rollout signals a shift toward modular, advisor‑first retirement products that can serve as entry points to more complex multi‑employee plans. As freelancers and gig workers increasingly seek tax‑advantaged savings, advisors equipped with a simple solo 401(k) can deepen relationships, generate recurring revenue, and differentiate themselves in a crowded market. Betterment’s $65 billion AUM base provides the credibility and infrastructure to scale this initiative, potentially reshaping how retirement solutions are delivered to America’s growing self‑employed workforce.