PensionBee, a leading online retirement provider, announced the launch of Simplified Employee Pension (SEP) IRAs in its digital platform. This offering provides a best-in-class retirement solution designed for self-employed individuals.
The launch comes at a critical time as the gig economy continues its rapid expansion. By 2025, gig workers are expected to make up nearly 50% of the U.S. workforce. This structural shift in employment patterns has created an urgent need for retirement solutions tailored to non-traditional workers, as traditional employer-sponsored retirement benefits become inaccessible to a growing segment of the workforce.
Self-employed Americans consistently report lower levels of retirement preparedness. Only about 13% of self-employed individuals in single-person businesses participate in retirement plans, compared to nearly 72% of traditional employees. Fewer take advantage of SEP IRAs, highlighting a significant opportunity gap.
“Pursuing your passions should not come at the expense of future retirement security,” said Romi Savova, CEO of PensionBee. “The addition of SEP IRAs to our platform allows us to empower self-employed Americans who may not have access to traditional retirement plans. Everyone deserves to plan for and enjoy a happy retirement.”
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Unlike traditional employees, self-employed Americans lack access to employer-sponsored retirement plans, automatic enrollment, and employer matching contributions that typically boost retirement readiness. This structural disadvantage affects millions of entrepreneurs and independent contractors who represent a growing segment of the American workforce. In response, self-employed individuals are more likely to claim Social Security early, potentially reducing lifetime retirement income.
Beyond individual benefits, PensionBee’s SEP IRA offering addresses a critical economic need. Small businesses represent over 99% of all U.S. businesses and create approximately two-thirds of new jobs. Despite this, reports show that one in five small business owners don’t have any retirement savings, and the majority have saved less than $50,000.
By providing modern retirement solutions for single business owners, PensionBee not only supports individual financial security but strengthens the economic foundation of American entrepreneurship.
PensionBee’s SEP IRA allows individual account owners to contribute up to 25% of their income, significantly higher than Traditional IRA limits, creating a powerful vehicle for retirement wealth accumulation. This higher contribution ceiling enables entrepreneurs to make up for periods of variable income and accelerate their retirement savings during profitable years.
PensionBee’s SEP IRA offers a complete solution for self-employed individuals:
- Consolidation of existing accounts: Users can transfer old retirement accounts (Roth IRA, Traditional IRA, or 401(k)) into one manageable account
- Higher contribution limits: SEP IRAs allow contributions of up to 25% or $70,000 of income, maximizing tax-advantaged savings
- Human Support: Easy setup and management with dedicated human support
- Retirement planning tools: PensionBee’s in-app retirement calculator allows users to model various scenarios to work toward savings goals
The SEP IRA offering is available immediately to all self-employed individuals and single business owners. PensionBee users can begin the setup process now with dedicated BeeKeepers available to guide them through account creation.
The addition of SEP IRAs represents a significant milestone in PensionBee’s mission to democratize retirement planning for all Americans, regardless of employment status. The company plans to continue expanding its offerings to address the evolving needs of today’s diverse workforce, with additional features and educational resources specifically designed for self-employed savers planned for later this year.
PensionBee‘s SEP IRA is the latest addition to a robust offering of retirement account types, including Traditional, Roth and Safe Harbor IRAs.
Source: BusinessWire
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