Schwab Retirement Plan Services says it has rolled out a new financial planning service for workplace retirement savings plans.
My Financial Guide, as the new service is called, lets plan participants conduct a financial health assessment via a questionnaire Schwab says most workers will be able to complete without looking at their financial records. The questions cover information such as household income and marital status, according to the company.
The platform then offers a step-by-step custom plan for reaching specific financial goals, Schwab says.
The guide includes educational modules on topics such as emergency savings, managing debt, insurance and estate planning, according to the company. In each case, Schwab says, employees can explore each topic without financial jargon and receive a customized selection of options on how to meet their goals.
Schwab put together My Financal Guide after what it says was extensive user testing to identify key financial challenges among 401(k) participants.
The guide taps behavioral economics for its interactivity, such as relying on “goal gradient theory” — the concept that individuals’ motivation rises as they get closer to achieving a goal, according to Schwab.
The guide also offers options for participants to receive additional financial coaching or guidance as well as tap resources beyond their workplace plan, the company says.
Schwab adds that clients of Charles Schwab who have brokerage accounts can also receive a free financial plan beyond their workplace 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 at 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, personalized approach incorporates human coaches so that participants can receive support the way they want it while focusing on improving their financial health.”
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