Financial Engines Launches Broader Retirement Planning Help
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401(k) Investors Get Access to Personalized Retirement Plans that Provide Advice on Investments, Savings and Retirement Income

PALO ALTO, Calif., June 3, 2009 – Financial Engines, a leading provider of independent retirement help, today announced the Financial Engines® Retirement Plan, a personalized statement that gives individualized advice to participants on investments, savings and retirement income.  The Retirement Plan is designed to give 401(k) participants a comprehensive roadmap to address key retirement decisions.

The introduction of the Retirement Plan is part of a wide-ranging effort at Financial Engines to broaden the scope of retirement help it offers employees at different phases of their lives.  Financial Engines will provide advice and management on investing, savings and retirement income decisions as 401(k) investors plan for, transition into and enter retirement. This initiative is part of the company's commitment to provide America's workers with Retirement Help for LifeSM services. 

The recent market downturn has reduced retirement account balances and shaken investors' confidence.  It is estimated by the Investment Company Institute that $2.1 trillion dollars in retirement assets were lost by investors from September 30, 2007 to September 30, 2008.1   According to EBRI's annual Retirement Confidence Survey (RCS), the number of workers who feel very confident about retiring has fallen to 13% - the lowest it has ever been in the survey's nineteen year history.2  The RCS also found that 44% report that they simply guess at how much they will need for a comfortable retirement.

"Investors are emerging from the initial shock felt after the market declines of 2008 and want to know where they stand and what they need to do to achieve their retirement goals," says Ken Fine, Executive Vice President of Marketing, Financial Engines.  "Through the Retirement Plan we address the key decisions 401(k) investors face and help them navigate their way to a more secure retirement." 

The Retirement Plan was inspired by features currently available in the company's online advice service.  Wanting to get more help readily into the hands of employees, Financial Engines Retirement Plan provides a personalized printed statement for participants who have their retirement account professionally managed.

"Financial Engines is once again extending the availability of independent and affordable retirement help and making it readily accessible to more 401(k) investors," continued Fine.  "The introduction of the Retirement Plan is just the beginning as we continue our efforts to help investors address more of their retirement planning needs." 

The Financial Engines® Retirement Plan

The Retirement Plan helps employees understand where they are in terms of their retirement and is organized to address three key areas in retirement planning: investments, savings and retirement income. 

Investments

The Retirement Plan gives the participant the fund by fund changes that Financial Engines plans to make in their account.  This section also incorporates information on the participant's tax-deferred and taxable accounts.  With this total-household view of the participant's savings and holdings, Financial Engines optimizes the retirement account it manages.   

Savings

The Retirement Plan also provides advice on how much a participant should be saving for retirement and what an increase in savings could mean in terms of increased employer match.  The plan takes a total portfolio savings approach, and includes savings to Roth 401(k), as well as reflects contributions to IRAs and other tax-deferred accounts.

Retirement Income

Finally, the Retirement Plan answers the ultimate retirement question, "How much am I going to have in retirement?"  The statement includes a personalized forecast that provides a realistic view of how much a participant's portfolio might be worth at retirement and the likelihood that the participant will achieve their retirement goal.  The Retirement Income section also covers how much a participant's investments, Social Security and other pension sources could produce in terms of annual income. Finally, if a participant is not on track to achieve their goals, they are reminded that they have access to a licensed investment advisor representative who can work with them to help improve their outlook.

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.

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Financial Engines® and Retirement Help for LifeSM are trademarks or service marks of Financial Engines, Inc. Advisory and sub-advisory services are provided by Financial Engines Advisors LLC, a federally registered investment adviser.

 


1.  Investment Company Institute, The U.S. Retirement Market, Third Quarter, 2008, page 11.  The U.S Total Retirement Market was valued at a little over $18 trillion dollars at the end of Q3 2007.  The value declined to $15.9 trillion by the end of Q4 2008.

2.  EBRI's 19th Annual Retirement Confidence Survey, 2009.