Simple questions lead to a custom plan with
clear actions to help participants reach financial goals
Schwab Retirement Plan Services announced today the launch of an
interactive, online dashboard designed to help retirement plan
participants save and invest. My Financial Guide walks participants
through a financial health assessment using straightforward
questions most workers can answer without having to look at their
financial records. The guide helps create a custom plan with clear
steps to work toward their specific goals.
“My Financial Guide was developed through extensive research and
user testing to give workers the power to take control of their
financial situations on their own terms,” said Nathan Voris,
Director, Schwab Retirement Plan Services. “We know workers want
help with their finances, but many are confused by industry jargon
and find it difficult to start the planning process. This
interactive experience was designed to help meet their expressed
needs and complement other educational resources and tools we
provide to employers who want to offer competitive benefits and
help employees save and invest for the future.”
Workers take control of their finances
Schwab Retirement Plans Services’ annual survey of 401(k)
participants found that workers want more help saving and planning
for retirement1. Six in ten participants (61%) think their
financial situation warrants professional advice this year, an
increase from 50% in 2020. My Financial Guide responds to these
needs with modules on critical topics that retirement plan
participants frequently want help addressing, including:
- Emergency Savings - educates participants on why
preparing for the unforeseen is an integral step toward achieving
financial goals
- Debt - teaches participants how to manage debt and build
repayment strategies
- Insurance - details how participants can protect
themselves and their finances from the unexpected
- Estate Planning - explores ways to help guide how a
participant’s assets are handled when the time comes
Each topic can be accessed independently so that employees can
work on the financial areas they care about most, at their own
pace. Modules cut through financial jargon to help provide
education as well as simple next steps. For example, the insurance
checklist contains definitions of basic terms in addition to
considerations for major insurance types and step-by-step guides to
explore coverage options to help determine if they meet financial
goals.
“My Financial Guide covers critical areas that employees say
they want help with from their workplace, delivered through a
modern, intuitive user experience that reflects our commitment to
digital innovation that drives engagement,” continued Voris.
Designing around employee needs
Working with experts in Schwab Digital Services’ Innovation Lab,
teams conducted extensive user testing to see financial challenges
through the eyes of real participants. Three critical insights
emerged from this process:
- Workers’ financial lives change over time, so the support they
receive should too.
- Many workers feel they are not worthy of a financial plan,
which they view as difficult to make.
- Workers prefer support on their own terms, meaning where, when
and how it best fits their goals and lifestyle.
My Financial Guide prompts users to provide information such as
marital status and household income that drives customized visuals,
next steps and goal setting. For example, the landing page includes
a prominent “Small steps for you” section, designed to help workers
make incremental progress towards their financial goals without
becoming overwhelmed.
Behavioral economics drives much of the guide’s interactivity.
The Emergency Savings module, for example, helps encourage
participants to take action by drawing on goal gradient theory,
which shows that motivation increases as individuals believe they
are closer to achieving a goal. Participants see their emergency
savings goal mapped out with a percentage progress bar, monthly
savings amount, and the next six-month milestone. They can use
sliders to shorten the timeframe further to see monthly goals and
progress. Even if long-term progress is small, being on the verge
of a short-term success may help keep participants motivated.
At the end of each module, participants receive a personalized
checklist of next steps based on their inputs and can check on
their guide periodically to track progress against goals and update
their information in response to any major changes. My Financial
Guide also includes options for participants to obtain financial
coaching and get connected with tools, additional guidance, and
resources beyond their workplace plan to help address broader
financial goals.
“Many workers prefer a do-it-yourself planning option if the
interface is intuitive and the next best actions are clear,” said
Voris. “We also know that workers often don’t have the time or
resources to complete the planning process on their own. My
Financial Guide’s modular, personalized approach incorporates human
coaches so that participants can receive support the way they want
it while focusing on improving their financial health.”
In addition, clients of Charles Schwab & Co., Inc. who have
brokerage accounts can receive a complimentary financial plan2 for
needs beyond their workplace plan.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at aboutschwab.com. Follow us on
Twitter, Facebook, YouTube, and LinkedIn.
Disclosures
1 2021 401(k) Participant Study. June 2021. This online survey
of U.S. 401(k) participants was conducted by Logica Research for
Schwab Retirement Plan Services, Inc. Logica Research is neither
affiliated with, nor employed by, Schwab Retirement Plan Services,
Inc. The survey is based on 1,000 interviews. Survey respondents
were actively employed by companies with at least 25 employees,
were 401(k) plan participants and were 21-70 years old. For past
surveys, respondents were 25 to 70 years old, so for comparing 2021
results to previous waves, the data was rebased on those aged 25 to
70. Survey respondents were not asked to indicate whether they had
401(k) accounts with Schwab Retirement Plan Services, Inc. All data
is self-reported by study participants and is not verified or
validated. Respondents participated in the study between April 1
and April 15, 2021.
Outcomes are not guaranteed.
2 Schwab Plan is available to clients at no cost, but any
investments you ultimately make may incur costs such as advisory
fees.
Schwab Retirement Plan Services, Inc. and Charles Schwab &
Co., Inc. (“Schwab”) are separate but affiliated companies and
subsidiaries of The Charles Schwab Corporation. Schwab Retirement
Plan Services, Inc. provides recordkeeping and related services
with respect to retirement plans. Brokerage products and services
are offered by Charles Schwab & Co., Inc.
Through its operating subsidiaries, The Charles Schwab
Corporation (NYSE: SCHW) provides a full range of securities
brokerage, banking, money management and financial advisory
services to individual investors and independent investment
advisors. Its broker-dealer subsidiary, Charles Schwab & Co.,
Inc. (member SIPC, www.sipc.org), and affiliates offer a complete
range of investment services and products including an extensive
selection of mutual funds; financial planning and investment
advice; retirement plan and equity compensation plan services;
compliance and trade monitoring solutions; referrals to independent
fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles
Schwab Bank, SSB (member FDIC and an Equal Housing Lender),
provides banking and lending services and products. More
information is available at www.schwab.com and
www.aboutschwab.com.
© 2021 Schwab Retirement Plan Services, Inc.
(0821-1SJZ)
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Mike Peterson Charles Schwab 330-908-4334
mike.peterson@schwab.com
Carly Taylor The Neibart Group 718-801-8206
SchwabRPS@neibartgroup.com
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