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Smart savings, lasting impact: Why a cost-efficient 401(k) matters more than ever

This open enrollment, see how a transparent, low-fee 401(k) can help attract talent, save on costs, and build a stronger benefits foundation.

By Betterment Editors

Published Oct. 21, 2025

Smart savings, lasting impact: Why a cost-efficient 401(k) matters more than ever Oct 21, 2025 9:33:43 AM This open enrollment, see how a transparent, low-fee 401(k) can help attract talent, save on costs, and build a stronger benefits foundation. Key takeaways Open enrollment season is a chance to strengthen your benefits and show employees you’re invested in them. A cost-efficient 401(k) helps form the foundation of financial wellness for both employees and employers. Lower fees can mean faster growth for savings and greater transparency for plan sponsors. Automation reduces administrative burden and compliance risk, freeing HR to focus on people. A modern, low-cost 401(k) helps attract and retain talent while reinforcing a culture of care. We like to think of open enrollment season as a company’s annual wellness checkup. It’s when employees review benefits, make updates, and—intentionally or not—evaluate how much their employer is investing in them. That’s especially important now. Health costs are rising fast: U.S. employers expect a 5.8% jump in health insurance costs in 2025.Those increases come on top of already difficult trends in premiums, deductibles, and out-of-pocket burden. For plan sponsors, it’s a good time to reassess your benefits offerings. After all, benefits can influence your ability to attract top talent, stay for the long haul, or return to the job hunt. And few benefits make a bigger impression than your 401(k) plan. Why a cost-efficient 401(k) is the foundation of financial wellness If your company were a home, your 401(k) would be part of its foundation—something solid and well-designed, built to support the floors that come after it. The same is true of a cost-efficient 401(k): It provides structure and stability for your employees’ financial futures, while helping your business stand on solid financial ground. And just like any well-built home, it’s the details that matter. With a 401(k), that includes things like low fees and transparent pricing, flexible plan design, automation, compliance, and support when you need it. Lower 401(k) fees mean more value for every dollar High plan fees can quietly eat into employees’ savings and employers’ budgets alike. But with a cost-efficient 401(k), your contributions and your employees’ can grow faster. Betterment at Work focuses on transparency—no hidden fees, no surprise markups—so both sponsors and participants can see where their money goes and how it’s working for them. Automated 401(k) administration saves time and reduces errors Running a 401(k) shouldn’t feel like constant maintenance. Betterment at Work can help you stay on top of payroll syncing, compliance requirements, and plan administration—to free up time for your HR team to focus on people, not paperwork. And our Hassle-Free Compliance Guarantee means you can count on a smooth audit season. How a cost-efficient 401(k) helps boost employee retention Today’s employees aren’t just comparing salaries—they’re comparing overall experiences. And much of that boils down to employee benefits. A modern, low-cost 401(k) shows you’re invested in their future. Think of your plan like a blueprint for financial wellness. By offering additional benefits, like an employer match, you’re underlining your commitment to your team and their financial future. Our modern platform and low-fee structure is designed for employees who want to see their money work as hard as they do. And for employers, it’s a sign of fiscal responsibility—proof that you’re building something meant to last. Efficiency is empathy: Building better 401(k) plans for people and business Offering a cost-efficient 401(k) is about improving outcomes—not just reducing expenses. Lower fees can help increase employee retirement savings, while streamlined administration reduces workload and compliance risk. This Open Enrollment, evaluate whether your plan’s structure, fees, and technology are helping both your employees and your organization achieve better results.

This open enrollment, see how a transparent, low-fee 401(k) can help attract talent, save on costs, and build a stronger benefits foundation.

Key takeaways

Open enrollment season is a chance to strengthen your benefits and show employees you’re invested in them.
A cost-efficient 401(k) helps form the foundation of financial wellness for both employees and employers.
Lower fees can mean faster growth for savings and greater transparency for plan sponsors.
Automation reduces administrative burden and compliance risk, freeing HR to focus on people.
A modern, low-cost 401(k) helps attract and retain talent while reinforcing a culture of care.

We like to think of open enrollment season as a company’s annual wellness checkup. It’s when employees review benefits, make updates, and—intentionally or not—evaluate how much their employer is investing in them.

That’s especially important now. Health costs are rising fast: U.S. employers expect a 5.8% jump in health insurance costs in 2025.Those increases come on top of already difficult trends in premiums, deductibles, and out-of-pocket burden.

For plan sponsors, it’s a good time to reassess your benefits offerings. After all, benefits can influence your ability to attract top talent, stay for the long haul, or return to the job hunt. And few benefits make a bigger impression than your 401(k) plan.

Why a cost-efficient 401(k) is the foundation of financial wellness

If your company were a home, your 401(k) would be part of its foundation—something solid and well-designed, built to support the floors that come after it.

The same is true of a cost-efficient 401(k): It provides structure and stability for your employees’ financial futures, while helping your business stand on solid financial ground. And just like any well-built home, it’s the details that matter. With a 401(k), that includes things like low fees and transparent pricing, flexible plan design, automation, compliance, and support when you need it.

Lower 401(k) fees mean more value for every dollar

High plan fees can quietly eat into employees’ savings and employers’ budgets alike. But with a cost-efficient 401(k), your contributions and your employees’ can grow faster.

Betterment at Work focuses on transparency—no hidden fees, no surprise markups—so both sponsors and participants can see where their money goes and how it’s working for them.

Automated 401(k) administration saves time and reduces errors

Running a 401(k) shouldn’t feel like constant maintenance. Betterment at Work can help you stay on top of payroll syncing, compliance requirements, and plan administration—to free up time for your HR team to focus on people, not paperwork.

And our Hassle-Free Compliance Guarantee means you can count on a smooth audit season.

How a cost-efficient 401(k) helps boost employee retention

Today’s employees aren’t just comparing salaries—they’re comparing overall experiences. And much of that boils down to employee benefits. A modern, low-cost 401(k) shows you’re invested in their future.

Think of your plan like a blueprint for financial wellness. By offering additional benefits, like an employer match, you’re underlining your commitment to your team and their financial future.

Our modern platform and low-fee structure is designed for employees who want to see their money work as hard as they do. And for employers, it’s a sign of fiscal responsibility—proof that you’re building something meant to last.

Efficiency is empathy: Building better 401(k) plans for people and business

Offering a cost-efficient 401(k) is about improving outcomes—not just reducing expenses. Lower fees can help increase employee retirement savings, while streamlined administration reduces workload and compliance risk. This Open Enrollment, evaluate whether your plan’s structure, fees, and technology are helping both your employees and your organization achieve better results.