Schwab Introduces Real Life Retirement™ Services – Practical Advice, Tools and Services for Americans Nearing Retirement

Recent Survey of 55-64 Year-Olds Shows 58% Not Delaying Retirement Despite Current Economic Conditions – But Are Looking for Help on Making the Transition

Monday, January 26, 2009 5:45 am PST



Public Company Information:


SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab & Co., Inc. announced the launch of Real Life Retirement™ Services, a new offering providing practical help for people making the transition to retirement. Many people transitioning to retirement are asking themselves: Can I afford to retire? How are my expenses likely to change? When should I take Social Security? What’s the best way to generate monthly income? Schwab’s Real Life Retirement™ Services provides answers to these questions.

“We have a different point-of-view from other financial firms in how we approach retirement. For most people, retirement isn’t about hang-gliding or hitting the golf course every day. People dream of balance – enjoying a comfortable lifestyle, covering healthcare costs, spending time with family and friends, and making sure they won’t run out of money,” said Mark Jamison, vice president, Charles Schwab. “We chose to build a service that addresses real life challenges people are facing today, which typically don’t involve a life sailing around the world,” he added.

Preparing for retirement has never been more challenging than it is today, particularly for those looking to retire within the next 10 years. Despite the challenges, many remain focused on their original retirement timelines, and are searching for help in making the necessary adjustments. In a pulse survey Schwab conducted Jan. 7 through Jan. 14, 2009, several ongoing concerns about retirement surfaced. One in four (26%) adults surveyed ages 55-64 do not know whose advice to trust when it comes to retirement planning. Additionally, 33% of 55-64 year olds indicated they are confused about weighing the immediate marketplace alongside their long-term goals.

Schwab Real Life Retirement: A Practical Approach

Ongoing discussions with investors, focus groups, an online community, and proprietary market research led to the creation of Schwab Real Life Retirement Services.

First Step: A Personal Retirement Conversation

To kick-start the conversation, Schwab provides a retirement consultation that is complimentary. This consultation with a Schwab professional provides practical advice for the years leading up to and making the transition to retirement and covers:

  • Options to close the gap between expected income and expenses
  • Portfolio recommendations focused on potential income while also allowing for growth potential to help savings last longer
  • Recommendations on ways to generate income from your savings
  • Guidance on which investments to draw down first to generate additional income
  • Support making the decision on when to consider taking Social Security based on age, work and income needs

Solutions for Income Generation

From CDs to bonds to annuities, Schwab can help find investments to meet retirement income needs including:

  • Access to the new Schwab Income Mutual Fund Select List™ — which helps to easily find mutual funds designed to provide income (to help cover expenses) plus growth (to help assets last)
  • Assistance with fixed income investing available during regular trading hours, along with Schwab’s main toll-free assistance hotline available 24 hours a day, seven days a week
  • An annuity cost comparison tool to help clients with exchanges
  • Manage your income and consolidate your accounts with the help of a rollover concierge

Dedicated Online Destination

Schwab is unveiling a dedicated site for those making the transition to retirement — The site features real questions from real people, and was built based on concerns shared by clients. Within the site, visitors will find:

  • Inspiration from peers discussing their own retirement
  • A place to ask questions and share their own experiences
  • A peer comparison and other retirement planning tools
  • Questions and answers from Schwab market experts
  • Video commentary on retirement issues from Schwab consultants

“We know making the transition to retirement is a dramatic mind-shift for many people: preparing to live off the money they have spent a lifetime accumulating. This presents an enormous challenge that tugs at both their practical and emotional sides, especially in this market environment when people are suddenly rethinking what their retirement might look like. We have these kinds of conversations every day with our clients, and that is why we created this service,” said Jamison.

About the Study

Schwab commissioned a national telephone Omnibus survey Jan. 7 through Jan. 14, 2009. The survey consists of 1,000 adults 18 years of age or older in the contiguous U.S.A. An omnibus is a shared cost data collection vehicle. All omnibus interviews are conducted using computer assisted telephone interviewing (CATI) system. An unrestricted random sampling procedure (RDD) will be employed in the selection of households for telephone interviewing.

Completed interviews are weighted by four variables: age, sex, geographic region, and race, to ensure reliable and accurate representation of the total population, 18 years of age and older.

The number of people surveyed in each age bracket is as follows: 18-34 years old, 303; 35-44 years old, 186; 45-54 years old, 195; 55-64 years old, 148; and 65+ years old, 164.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost

Charles Schwab & Co., Inc., receives remuneration from fund companies participating in the Mutual Fund OneSource® service for record keeping and shareholder services and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.4 million client brokerage accounts, 1.4 million corporate retirement plan participants, 447,000 banking accounts, and $1.1 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,, 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 its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (0109-7691)

© 2009 Charles Schwab & Co., Inc. All rights reserved. Member SIPC


Charles Schwab
Matt Hurwitz, 415-636-3700
Jennifer McClellan, 212-704-4567

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