According to a press release, the consultation is accessed by calling a toll-free number and is offered by Wachovia’s retirement plan specialists. The consultants will engage in conversations with employees to determine if they are enrolled in the plan and on track to replace 80% of their pre-retirement income at the time of retirement.
“As numerous studies have shown, inertia or plan complexity result in a lack of action, which results in participants not reaching their required savings level. We believe that a live retirement consultation will give participants a snapshot of what they need to do to improve retirement income projections — and this will, over time, become a motivator for preparing for the future,” said Joe Ready, Executive Vice President and head of Wachovia Retirement Services, in the announcement.
Wachovia said that in June, it conducted a pilot to determine the impact of a free retirement consultation offering to plan participants, and the results show most employees are not on track to save for their retirement:
- Of the 736 free retirement consultations offered, 43% of participants accepted the consultation (318);
- Of those who accepted the consultation, only 8% were “on track” to recreate 80% of their pre-retirement income; and
- Forty percent took action and either enrolled, increased deferrals, or changed allocations.
More information is at http://wachovia.com/401k .