New Alliance Designed to Help Hewitt Clients’ Participants Plan for Retirement In Light of
LINCOLNSHIRE, Ill and PALO ALTO, Calif., March 30, 2009 – Hewitt Associates and Financial Engines today announced their alliance to deliver integrated retirement advisory services. The new offering is designed to help participants in Hewitt's clients' plans improve their chances for a more secure retirement. Through the alliance, participants in plans administered by Hewitt will receive a suite of independent, objective advisory services, which include a personalized retirement evaluation, online investment advice and managed accounts. These jointly delivered services help participants reach their retirement goals by providing advice on savings, investing and retirement income planning.
The joint offering between Financial Engines and Hewitt combines Financial Engines' advisory services with Hewitt's robust participant experience. Financial Engines' retirement income forecast–which provides an estimate of income in retirement and keeps participants focused on their long-term goals–will be included in the Hewitt participant site. The Hewitt-Financial Engines solution will also enable Financial Engines' advisors to implement savings decisions on behalf of participants in Hewitt-administered plans and allow them to take effect immediately. Also, participants can receive decision support regarding elections between traditional 401(k) contributions and Roth 401(k) contributions.
"We're seeing strong demand for our retirement administration services. Leading companies rely on Hewitt to provide them with unbiased consulting on their 401(k) plans and the tools to help them build the most effective plans for their participants," says Alison Borland, Hewitt's Leader of Retirement Outsourcing Product Strategy. "Hewitt believes offering investment advice and managed accounts to employees adds an important element of decision support to plan design, addressing the diverse needs and preferences within the population. By aligning with a top leader in the space to provide a unique and comprehensive solution, we are providing a compelling offering for large plan sponsors that ultimately will benefit them and their employees."
Hewitt and Financial Engines' complementary expertise and strong commitment to independence and objectivity will help large plan sponsors deliver retirement help to participants at this crucial time. Recent research from Hewitt shows that the need for retirement help has never been greater. According to Hewitt, the gap between the amount of money U.S. employees currently have saved and what they need to save in order to maintain their standard of living in retirement has increased greatly due to the slowed economy. In fact, Hewitt analysis shows that a typical 55-year-old employee with a current average 401(k) savings rate of 10 percent of pay will need to save an additional 12 percent each year until age 65, or work for two more years, just to replace what was lost in 2008.
"The market downturn has made it clear that American workers need retirement help more than ever. It's encouraging to see more companies making advisory services available to their employees," says Larry Raffone, Executive Vice President of Financial Engines. "We look forward to working closely with Hewitt to serve their clients. Together we are committed to helping employees with all of the key decisions that need to be made as they plan for and transition into retirement."
About Hewitt Associates
Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt consults with companies to design and implement a wide range of human resources, retirement, investment management, health management, compensation, and talent management strategies. As a leading outsourcing provider, Hewitt administers health care, retirement, payroll, and other HR programs to millions of employees, their families, and retirees. With a history of exceptional client service since 1940, Hewitt has offices in 33 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visit www.hewitt.com.
About Financial Engines:
Financial Engines is a leading independent investment advisor committed to providing everyone the trusted retirement help they deserve. The company helps investors with their total retirement picture by offering personalized retirement plans for saving, investment, and retirement income. To meet the needs of different investors, Financial Engines offers both online advice and professional management. Cofounded in 1996 by Nobel Prize-winning economist Bill Sharpe, Financial Engines works with America's leading employers and retirement plan providers to make retirement help available to millions of American workers. For more information, please visit www.financialengines.com.