Get more! Sign up for PLANSPONSOR newsletters.
Benefits January 24, 2005
Schwab: K Plan Advice Helps Beef up Deferrals
January 24, 2005 (PLANSPONSOR.com) - K plan
participants using managed account and advice offerings from
Schwab Corporate Services more than doubled their average
savings rate to 9.57% of eligible income in 2004, according
to a Schwab news release.
Reported by Fred Schneyer
The news release said that 84% of these participants enrolled in managed accounts that provide ongoing account monitoring and automatic rebalancing. Schwab Retirement Plan Services, Inc. (SRPS) offers managed account and advice services at no extra cost to Schwab K plans.
Participants in Schwab plans have access to personalized advice online, by phone or in person, including recommendations specific to the core investment fund choices available in their plan and specific recommended savings rates, the company said. Participants can also elect managed accounts with annual rebalancing. provided by GuidedChoice.
“We know that when it comes to retirement planning, many individuals aren’t sure how much they need to save or how to invest. We offer those answers and the opportunity to discuss them with an investment professional. Clearly, many of our participants prefer this type of one-on-one relationship,” said Trish Cox, SRPS chief operating officer, in the news release.
Cox noted that previously, the average savings rate for these participants was 4.57%, well below the overall average for Schwab’s 401(k) participants (7.15%) and the national average (7%).
« Global Funds Grow, Domestic Shrink as Trends Continue in December