Aon said its pooled employer plan (PEP) has reached $5bn in live and committed U.S. 401(k) assets since launching in 2021. The platform now covers more than 130 employers and 100,000 eligible workers.
Managing a standalone 401(k) has become increasingly difficult for employers. Regulatory pressure, fiduciary risk, and administrative overhead weigh heavily, with more than 700,000 U.S. firms handling these plans independently.
Research shows that one in four employers view compliance complexity, resource constraints, and time demands as key barriers to expanding benefits.
That challenge is driving demand for PEPs. Aon reports participating companies cut 401(k) workloads by 50–75% after joining its plan.
Lower costs, streamlined oversight, and reduced liability risk make pooled plans attractive to organizations under pressure to modernize benefits.
Rick Jones, senior partner in Aon’s Wealth Solutions group, said employers adopting pooled platforms “see immediate advantages, including lower costs, significantly reduced administrative workload and improved governance, all of which deliver better experiences for their teams and stronger outcomes for employees.”
Employers see immediate advantages from these pooled platforms, including lower costs, significantly reduced administrative workload and improved governance, all of which ultimately deliver better experiences for their teams and enhanced outcomes for employees.
Rick Jones, senior partner in Wealth Solutions for Aon
The scale of the Aon PEP also creates direct value for participants. With billions in combined assets and more than 100,000 participants, the plan delivers lower fees and access to a wider range of investment options. Aon reported an 11% increase in enrollment within the first year and a 5% boost in contribution levels after two years.
Beth Jackman, director of global benefits at Atmus Filtration Technologies, said pooled arrangements ease the burden on employers and reduce perceived risks for participants: “Without the pressure to maintain internal bench strength or worry about liability, organizations can shift responsibility to providers like Aon, which monitor plans far more effectively than most individual employers could.”
Jennifer Brasher, head of Aon Wealth Solutions in North America, said the company is setting the standard for scale in pooled retirement plans.
We are witnessing a fundamental shift in how retirement benefits are delivered in the U.S. As more organizations embrace PEPs, Aon is leading this transformation and enabling employers of all sizes to offer sustainable retirement security.
Jennifer Brasher, head of Aon Wealth Solutions in North America
The momentum underscores how demographic changes, rising employee expectations, and fee sensitivity are reshaping retirement benefits. With its $5bn milestone, Aon has signaled that pooled models are gaining traction as a scalable alternative to the traditional 401(k).
