Schwab Provides Tips to Spring Clean Finances and Dust Off Retirement Accounts

As Economy Gets Back on Track, Schwab Helps Investors of All Ages Do the Same

Wednesday, April 28, 2010 5:00 am PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW
"At Schwab we offer the resources and guidance to help investors get back on track for retirement, devising a plan that suits their lifestyle and expectations and also closes the gap in savings goals through discipline and smart portfolio management."

SAN FRANCISCO--(BUSINESS WIRE)--Investors find it hard to “walk the talk” when saving for retirement, according to the recent quarterly Real Life Retirement pulse survey from Charles Schwab. Nearly three in ten investors believe they should contribute 10 percent of their income to retirement, yet twice that number of investors – 60 percent – are allocating less. Additionally, 20 percent of those surveyed are saving nothing for retirement.

“We work with clients of all ages who feel they are behind or perhaps not where they should be when it comes to retirement savings. What we tell them is that one key to successful preparation is finding the common ground between realities and dreams,” said Schwab Financial Consultant Darsi Ringer. “At Schwab we offer the resources and guidance to help investors get back on track for retirement, devising a plan that suits their lifestyle and expectations and also closes the gap in savings goals through discipline and smart portfolio management.”

Real Life Retirement Tips for All Ages

Ringer offers basic retirement tips to help investors of all ages get back on track:

Twenties

  • Set your 401(k) contribution to at least 10 percent of your gross income beginning with your first job
  • Resist the temptation to cut back on saving for retirement, regardless of what’s going on elsewhere in your life
  • Put any bonuses or raises you get into your retirement savings

Thirties

  • Make saving for retirement a priority, even as you also save for other goals, such as a house or your children’s college education. There are no loans or financial aid options to help pay for retirement
  • Track your spending, find ways to cut back on expenses and save more for retirement
  • Put any bonuses or raises you get into your retirement savings

Forties

  • Contribute the maximum-allowed amount to your 401(k) or other employer retirement plan
  • After you contribute the maximum to your 401(k), consider the benefits of contributing to a traditional or Roth IRA
  • Put any bonuses or raises you get into your retirement savings

Fifties and Sixties

  • Take advantage of “catch-up” contributions to your retirement accounts
  • Consider retiring later or working part-time in retirement to help increase your income
  • Consider decreasing your exposure to stocks to help reduce the impact of market volatility on your portfolio

For More Information

Charles Schwab encourages individuals to take advantage of Schwab’s Real Life Retirement Services, which provides a realistic approach to retirement, not only offering key insight into actionable ways to save for and manage retirement savings, but also providing guidance on products and services and access to stories from Americans who have successfully moved into life’s third act. For more information please visit, www.schwab.com/RealLifeRetirement.

About The Study

The Charles Schwab Q1 Retirement Omnibus Survey was conducted by Kelton Research between January 26th and February 1st, 2010 using Random Digit Dialing of listed and unlisted numbers. Quotas are set to ensure reliable and accurate representation of the total U.S. population ages 18 and over. 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 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.8 million client brokerage accounts, 1.5 million corporate retirement plan participants, 768,000 banking accounts, and $1.49 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. Named "Highest in Investor Satisfaction with Self-Directed Services" by J.D. Power and Associates in 2009, 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. (0410-2617)

Contact:

Charles Schwab
Matt Hurwitz, 415-667-0480
matt.hurwitz@schwab.com
or
Edelman
Pablo Rodriguez, 415-486-3267
pablo.rodriguez@edelman.com

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