Retirement Plan Savings Rates Double for 401(K) Participants Using Schwab Managed Account and Advice Services

Retirement Plan Savings Rates Double for 401(K) Participants
Using Schwab Managed Account and Advice Services 


SAN FRANCISCO, Jan. 24  /PRNewswire-FirstCall/ -- 401(k) plan participants save
more when they receive personalized advice, based on the first-year results of
Schwab Corporate Services' managed account and advice offerings. Individuals
using the services more than doubled their average savings rate to 9.57 percent
of eligible income in 2004. In addition, 84 percent of these same individuals
enrolled in managed accounts that provide ongoing account monitoring and
automatic rebalancing.

Schwab Corporate Services, a leading provider of workplace financial benefits,
offers personalized managed account and advice services at no extra cost to
401(k) plans serviced by Schwab Retirement Plan Services, Inc. (SRPS).*

Participants have access to personalized advice either online, by phone or in
person, including recommendations specific to the core investment fund choices
available in their retirement plan and specific recommended savings rates.
Participants also have the option to elect managed accounts with annual
rebalancing. The advice, including the managed account feature, is provided by
a third party, GuidedChoice(TM), Inc., an innovator in the development and
delivery of investment advice.**

"We know that when it comes to retirement planning, many individuals aren't
sure how much they need to save or how to invest. We offer those answers and
the opportunity to discuss them with an investment professional. Clearly, many
of our participants prefer this type of one-on-one relationship. We're
gratified that our approach is encouraging them to take action," said Trish
Cox, chief operating officer for SRPS.

Cox noted that previously, the average savings rate for these participants was
4.57 percent, well below the overall average for Schwab's 401(k) participants
(7.15 percent) and the national average (7.0 percent).***

"Our goal has always been to help plan sponsors get their employees to and
through retirement. By making the commitment to offer personalized advice
without charging additional fees, we broke new ground and removed key barriers
to effective retirement investing," said Jim McCool, president of Schwab
Corporate Services. "Our first-year results only deepen our conviction that
advice services should be standard in every 401(k) plan."

About Schwab Corporate Services

Schwab Corporate Services (SCS) provides services to retirement plan sponsors
and participants through Schwab Retirement Plan Services, Inc. (SRPS), The
Charles Schwab Trust Company (CSTC), and Charles Schwab & Co., Inc. SCS also
provides equity compensation plan services and other financial and retirement
services to corporations and executives. SRPS provides recordkeeping and
related services with respect to retirement plans. CSTC, a California
state-chartered trust company, provides trust and custody services to
retirement plan sponsors. Charles Schwab & Co., Inc. (Member SIPC) is a
registered broker/dealer, offering the Schwab Personal Choice Retirement
Account(R) (PCRA), as well as other brokerage and custody services to its
customers. These entities are affiliates of each other and are wholly owned
subsidiaries of The Charles Schwab Corporation. Total client assets in
employer-sponsored retirement plans at Schwab equaled $131 billion at the end
of December 2004. The Charles Schwab Corporation (NYSE / Nasdaq: SCH), through
Charles Schwab & Co., Inc. (member SIPC), U.S. Trust Corporation (member FDIC),
CyberTrader(R), Inc. (member SIPC) and its other operating subsidiaries, is one
of the nation's largest financial services firms. (0105-3698)

* "At no extra cost" means that there is no cost for service outside the fees
paid to SRPS and Charles Schwab & Co., Inc. (CS&Co.) for recordkeeping and
related services, including trustee and custodial fees paid to The Charles
Schwab Trust Company.

** The GuidedChoice(TM) service and the investment advice are formulated and
provided by GuidedChoice Asset Management, Inc. (GuidedChoice). GuidedChoice is
not affiliated with, nor is it an employee or agent of, CS&Co. or SRPS. The
GuidedChoice service is available to participants enrolled in plans that use
the recordkeeping and related services of SRPS. Availability subject to
regulatory requirements. Plan sponsors must elect to make the GuidedChoice
service available. Availability may be limited due to plan type and plan
provisions. Participant access to the GuidedChoice service is facilitated
through SRPS's affiliate, CS&Co. Neither CS&Co. nor SRPS supervises, makes
recommendations with respect to, or takes responsibility for monitoring the
advice provided to participants by GuidedChoice. These entities are affiliates
of each other and are wholly owned subsidiaries of The Charles Schwab
Corporation.

*** National Defined Contribution Council; Defined Contribution Market Insights
2003. 

DATASOURCE: Charles Schwab



CONTACT:  Mike Peterson, [phone], or ; or

Lindsay Tiles, [phone], or , both of Charles

Schwab



Web site:  http://www.schwab.com/ 

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