Engaging Participants in their Retirement Goals
Industry surveys conducted over the past few years consistently show that retirement plan participants are not particularly engaged when it comes to their retirement account. When asked, many don't know if their current strategy will achieve their desired outcome at retirement. Historical web usage data collected by Schwab RT also show that they rarely log into their account. When they do, they check their account balance and account performance, review their account statement, and in some instances, respond to life events like a hardship or borrowing funds. Participants also rarely take advantage of guidance and advice features when offered by their plan as an elective service.
To address these challenges, Schwab RT's alliance with Envestnet Retirement Solutions helps you provide proactive retirement progress reporting to retirement participants that is integrated with an interactive online guidance and advice tool. The objective of this comprehensive push and pull solution is geared to help plan participants clearly see if they are on track for retirement, and take action to improve it.
Suggesting a Better Strategy
Envestnet’s K4 Plan Goals® tool analyzes the investment holdings and participant data from the Schwab RT recordkeeping system and delivers the summary results of their personal retirement strategy onto a special Retirement Progress "gadget" that can be placed on the participant's home page.
The summary results show the participant's chance of success, based on a specific contribution rate, investment risk, retirement age, and their projected monthly income at retirement. The objective is to help drive awareness, make the information relatable, simple to understand, and engage participants to take action.
A sample Retirement Progress gadget appears below:
Taking Action Is Easy
When appropriate, the participant can take action by following the Improve Your Outlook link to the K4 Plan Goals website.
While on the K4 Plan Goals site, the participant can view their full retirement progress report and make adjustments to their retirement assumptions. With K4 Plan Goals, each strategy combination is analyzed for both satisfaction and success based on the participant's unique set of objectives and priorities. The result is the participant's optimal solution—the one complete strategy with the greatest satisfaction and acceptable probability of success. K4 Plan Goals patented technology combines that success and satisfaction to solve for the four key retirement variables at the same time in a complete strategy without frustrating iteration by the participant.
If a participant accepts the suggested guidance or implements the advice strategy, K4 Plan Goals prepares the necessary transaction instructions on behalf of the participant and passes them to Schwab RT for processing.
For more information about Envestnet Retirement Solutions, visit www.envestnet.com.