SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab, a 401(k) provider to approximately 1.5 million company retirement plan participants, today released new insights into the growing number of employers providing their employees with value-added 401(k) plan features that help drive positive plan participation and savings behaviors.
“For many 401(k) investors, the 401(k) is their primary retirement savings vehicle, so it is important that employers continue to make available plan features that drive better participation, savings levels and outcomes”
According to data collected from 401(k) plans serviced by Schwab Retirement Plan Services, Inc. through the first half of 2010:
|Feature Adoption Rates (2005 through June 30, 2010)|
|Target Date Funds||57%||62%||70%||73%||75%||76%|
|Automatic Enrollment and Automatic Savings Increase||N/A||14%||24%||30%||35%||37%|
“For many 401(k) investors, the 401(k) is their primary retirement savings vehicle, so it is important that employers continue to make available plan features that drive better participation, savings levels and outcomes,” said Dean Kohmann, Charles Schwab vice president of 401(k) plan services. “The employers we work with understand this responsibility as evidenced by some significant increases in features like automatic enrollment, automatic savings increases, and professional guidance in the form of target date funds and one-to-one advice.”
Schwab Retirement Plan Services, Inc. provides recordkeeping and related services with respect to retirement plans and is a subsidiary of The Charles Schwab Corporation.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.9 million client brokerage accounts, 1.5 million corporate retirement plan participants, 813,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company 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; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com. (0810-5269)