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Capital Group Unveils New Access to ICanRetire® for Small Businesses

On January 23, 2025, Capital Group announced a significant expansion of its ICanRetire® program, making it available to financial advisors for small business owners. This unique employee engagement initiative aims to boost retirement access for employees of small enterprises, complementing the company's existing 401(k) solutions, PlanPremier® and RecordkeeperDirect®. This strategic move not only assists these businesses in enhancing their retirement offerings but also provides a competitive edge for financial advisors seeking to broaden their client base.

Creating Opportunities for Small Businesses

The ICanRetire® program is designed to foster greater engagement and participation among employees regarding their retirement plans. Capital Group has recognized that retirement planning represents a pivotal market opportunity, especially in a landscape where many small business employees find themselves without adequate retirement savings options. Dana McCollum, President of Retirement Plan Services at Capital Group, emphasizes the importance of simplifying the retirement planning process for both financial advisors and their clients. “By integrating ICanRetire with our small business retirement plans, advisors acquire a powerful tool to attract new clients,” McCollum stated.

The initiative enables advisors to present ICanRetire alongside either the bundled PlanPremier plan or the more flexible RecordkeeperDirect solution tailored for startups and smaller businesses. These offerings not only provide essential services but also enhance the overall retirement savings potential for employees. The financial advisors' ability to help small business owners effectively manage these plans can lead to increased participation and contribution rates without incurring extra costs.

Enhancing Participation and Outcomes

Research indicates a substantial benefit to financial advisors specializing in retirement planning. According to industry findings, those advisors have been shown to manage more than double the assets compared to their peers who do not focus on retirement solutions. Furthermore, it's reported that 97% of broker-dealer-based advisors oversee some retirement assets, with a majority actively seeking more support from asset managers to reach additional clients. Employing the ICanRetire program can significantly boost a financial advisor’s ability to engage clients effectively. Data reveals that employees who interact with the ICanRetire platform are 3.4 times more likely to enroll in their company-sponsored retirement plan and 1.5 times more likely to increase their contribution rates.

The success of this program has already been witnessed in employers utilizing American Funds Target Date Retirement Series, where ICanRetire has provided a much-needed platform for enhancing employee engagement and participation.

About Capital Group

Founded in 1931, Capital Group is home to American Funds and has since been dedicated to delivering solid results for long-term investors through high-conviction portfolios and rigorous research methods. With over $2.8 trillion in assets under management as of September 30, 2024, Capital Group maintains a unique structure that enables independent decision-making among its investment professionals, thus ensuring that each investment group's strategies align with the best interests of their clients.

In summary, Capital Group's expansion of the ICanRetire® program for small businesses is poised to reshape the retirement savings landscape for countless employees, offering vital resources and support for financial advisors to enhance their practices. This initiative not only glorifies retirement planning but also serves as a crucial pillar for small businesses aiming to provide better financial futures for their employees.