Promotional strategies to watch for
Promotions are a smart way to get employers’ attention—we like them too!
But if it sounds too good to be true, it probably is. Some look generous upfront, only to hide costs or conditions that surface later. Knowing what’s underneath the offer helps you choose a partner built for the long game.
Fully “Fee-Free” Plans
Plans may appear free to the employer, but participants often bear the cost through variable asset-based fees (AUM). Additionally, short contract terms mean that pricing can increase after the first or second year, making costs unpredictable.
Discounted Startup Fees
Providers may waive setup fees initially, only to increase monthly base or per-participant fees later, offsetting the perceived savings.
Technology or Marketing Credits
Some providers offer credits for tech integrations, employee education, or engagement tools. While these may seem like a perk, they often come with conditions, limited duration, or require ongoing spending, and before long, you realize how difficult they are to actually claim.
“No Transaction Fees” Claims
Some providers promote “no transaction fees” as a differentiator, but the reality is that these costs are often recovered elsewhere - commonly through higher asset-based fees or bundled charges that impact all participants. At Vestwell, we believe transaction costs should be paid only by those who make them, not spread across everyone in the plan.
In addition, some recordkeepers require the inclusion of their own proprietary fund products in the investment lineup. This can increase costs for participants compared to benchmark alternatives and may present a potential fiduciary risk for the plan sponsor.
Why transparency matters
When pricing is clear, participation increases.
At Vestwell, we see transparency not just as a pricing strategy, but as a responsibility.
- Employers can confidently budget.
- Advisors can recommend plans without hidden conflicts.
- Payroll providers can trust their savings partner to elevate their brand and strengthen client loyalty.
- And savers can know that their hard-earned money is actually working for them—not against them.
At Vestwell, we see transparency not just as a pricing strategy, but as a responsibility.
Avoid letting unexpected costs stack up
We understand how important it is to manage costs effectively. That’s why Vestwell’s pricing model helps sponsors avoid the mounting variable fees often seen with other providers. As setup charges, price increases, and fluctuating participation rates of eligible employees add up elsewhere, Vestwell keeps your costs predictable and under control.
