Betterment at Work Builds on Its 401(k) Offering With Expanded Benefits

Betterment at Work, the 401(k) division of the digital wealth manager Betterment, announced a series of enhancements to its retirement plan offering on June 23, 2026. The updates aim to simplify plan administration for sponsors and expand savings tools for participants.

Eligible participants can now receive a 75-basis-point boost on the variable annual percentage yield (APY) of Betterment’s high-yield cash account through January 15, 2027. The cash account is available alongside Betterment’s investing accounts, allowing employees to build emergency funds while saving for retirement.

Platform and product enhancements

The centerpiece of the update is a redesigned plan sponsor dashboard. Based on customer feedback, the dashboard centralizes administrative tasks, payroll integration status, action items, and support. It also includes a new AI-powered benchmarking tool that compares a plan’s participation and contribution rates against national averages, helping sponsors identify areas for improvement.

Other improvements include mobile contribution management, letting participants adjust Traditional and Roth deferrals in a single screen, and the addition of OnPay to Betterment at Work’s network of more than 350 payroll integrations. The automated sync reduces manual data entry and supports compliance.

Betterment also highlighted the investment performance behind its platform. The firm’s Core Portfolio, which powers the 401(k) offering, achieved a composite annual time-weighted return of 10.06% over 10 years as of December 31, 2025, net of fees.

“Our portfolios are designed to help clients stay the course through changing market environments,” said Mindy Yu, Senior Director of Investing at Betterment. “That long-term track record reflects a disciplined focus on portfolio construction, ongoing optimization, and helping clients build wealth over time.”

Betterment at Work manages plans for growing businesses and is backed by the same technology that oversees more than $70 billion in client assets at Betterment.