Charles Schwab and AARP Announce New Relationship to Help AARP Members Make More Informed Financial Decisions

Relationship Makes Schwab Financial Guidance Services Program Available to AARP Members

Monday, January 31, 2011 5:30 am PST

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW
"Our members tell us that achieving financial security is their top goal along the way to living their best lives. This new program will give them easy access to straightforward information and financial guidance from a familiar source in a pressure-free setting to help them with their goals and dreams."

SAN FRANCISCO--(BUSINESS WIRE)--Financial services firm Charles Schwab & Co., Inc. and AARP today announced plans for Schwab to launch a new financial guidance services program for AARP members. The program, AARP | Financial Guidance Services provided by Charles Schwab, will provide AARP’s millions of members nationwide access to special offers on some of Schwab’s financial guidance services.

AARP provides financial education and information through many local and national programs as well as brochures and on aarp.org. AARP’s financial education efforts will be enhanced by the new Schwab relationship, which provides AARP members with access to guidance and services covering many different financial situations.

John Wider, president and CEO of AARP Services, Inc., AARP’s for-profit subsidiary, said, "Our members tell us that achieving financial security is their top goal along the way to living their best lives. This new program will give them easy access to straightforward information and financial guidance from a familiar source in a pressure-free setting to help them with their goals and dreams."

Key benefits to AARP members through the program include complimentary financial consultations, educational seminars throughout Schwab’s network of more than 300 branches, and a program fee rebate on Schwab Managed Portfolios, a professionally managed, diversified portfolio of mutual funds designed for a range of investment strategies. AARP members will also have access to a dedicated toll-free number at Schwab and content online.

“We are in the midst of a challenging economy that has disrupted how many Americans are thinking about and planning for their retirement. Their need for information and access to resources is greater than ever, and through this program, we hope to be able to help many of AARP’s members prepare for retirement on their own terms,” said Ben Brigeman, executive vice president for Charles Schwab.

A recent survey of Americans 50 and older fielded by Schwab shows gaps between financial information received and action taken among those on the verge of retirement. While 67 percent say they know what they need to know to manage their finances successfully, just 10 percent say they feel prepared for planning and saving for retirement.

Additional findings from the survey include:

  • Just forty-seven percent of respondents say they are handling their financial future actively
  • More than half (53 percent) think their most challenging financial issues are in their future
  • Another 31 percent say they still have a lot to learn about managing their finances successfully; in fact, 55 percent say they have learned more from their mistakes than from their financial successes
  • More than six in ten (61 percent) of those surveyed would prefer to have options/opinions tailored to their situation when it comes to seeking financial advice

About the Survey

The Charles Schwab Retirement Advice Survey was conducted by Kelton Research between December 15-20, 2010 using Random Digit Dialing of listed and unlisted numbers. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.9 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

The Schwab-AARP Relationship

Charles Schwab & Co. Inc. (“Schwab”) offers certain financial guidance services to eligible AARP members (the “Program”). Schwab is an independent registered broker-dealer not affiliated with AARP or any of its affiliates. All brokerage services are performed by Schwab. AARP endorses the Program, but is not a registered broker-dealer and does not provide brokerage services or financial advice and cannot recommend or endorse specific investments in connection with the Program. For the first new account opened at Schwab by an AARP member, Schwab pays AARP a one-time royalty fee for the use of AARP intellectual property (name, logo and mailing list). These fees are used for the general purpose of AARP and do not increase any fees, commissions, charges, or expenses paid by you to Schwab. Please contact Schwab directly for details.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.0 million client brokerage accounts, 1.5 million corporate retirement plan participants, 690,000 banking accounts, and $1.57 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com.

Follow us on Twitter: @charlesschwab

About AARP

AARP is a nonprofit, nonpartisan organization, with a membership, that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.1 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; AARP VIVA, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

About AARP Services, Inc.

AARP Services, Inc., founded in 1999, is a wholly-owned taxable subsidiary of AARP. AARP Services manages the provider relationships for and performs quality control oversight of the wide range of products and services that carry the AARP name and are made available by independent providers as benefits to AARP’s millions of members. The provider offers currently span health products, financial products, travel and leisure products, and life event services. Specific products include Medicare supplemental insurance; credit cards, auto and home, mobile home and motorcycle insurance, life insurance and annuities; member discounts on rental cars, cruises, vacation packages and lodging; special offers on technology and gifts; pharmacy services; legal services; and long-term care insurance. AARP Services also engages in new product development activities for AARP and provides certain consulting services to outside companies. (1210-7654)

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6590373&lang=en

Contact:

Charles Schwab
Matt Hurwitz, 415-297-4199
matt.hurwitz@Schwab.com
or
AARP
Nancy Thompson, 202-434-2560
media@aarp.org

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Older Americans are concerned about their financial future. (Graphic: Business Wire)

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