Schwab pension plan services says it has launched a new financial planning service for workplace retirement savings plans.
My Financial Guide, as the new service is called, allows plan members to assess their financial health through a questionnaire. According to Schwab, most workers will be able to complete without looking at their financial records. The questions cover information such as household income and marital status, depending on the business.
The platform then offers a personalized step-by-step plan to achieve specific financial goals, Schwab explains.
The guide includes educational modules on topics such as emergency savings, debt management, insurance and estate planning, according to the company. In each case, Schwab says, employees can explore each topic without financial jargon and receive a personalized selection of options on how to achieve their goals.
Schwab put together My Financial Guide after what it says is extensive user testing to identify the top financial challenges among 401 (k) participants.
The guide exploits behavioral economics for its interactivity, such as relying on ‘goal gradient theory’ – the concept that the motivation of individuals increases as they move closer to achieving a goal, according to Schwab.
The guide also gives attendees the option of receiving additional financial coaching or advice, as well as leveraging resources beyond their work plan, according to the company.
Schwab adds that customers of Charles Schwab who have brokerage accounts can also receive a free financial plan beyond their work plan needs.
“Many workers prefer a do-it-yourself planning option if the interface is intuitive and the next best actions are clear.” Nathan Voris, director of Schwab Retirement Plan Services, said in a statement. “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 and personalized approach incorporates human coaches so participants can receive support as they wish while focusing on improving their financial health.
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