Rethinking retirement planning: My Virtual Coach

With so many trends influencing human behavior—digitization, increased distractions, multi-tasking on multiple devices—we knew there must be a better way to simplify retirement planning, make it less daunting and empower people to take action. The answer? My Virtual Coach.

The best kind of innovation isn’t just written up in business magazines or recognized at industry events. It’s felt in the lives of real people.

For proof, look no further than My Virtual Coach, a virtual-assisted, interactive enrollment and education tool that is making it easier than ever for 401(k) plan participants to save for retirement.

”We know that when it comes to saving for retirement, inertia and complexity get in the way,“ says Jerry Patterson, senior vice president of retirement and income solutions. ”People want to make good choices, but they don’t always know what actions to take.”

And, let’s face it, inertia and complexity aren’t the only things that get in the way. Our increasingly digital lives make it hard for people to sit through meetings—the traditional method for enrolling in a 401(k) plan.

My Virtual Coach works to solve all that. Turning education upside down with a little humor delivered in a web-based interactive and personalized conversation is changing behavior by making complex topics and decisions less scary and easier to understand. Covering topics like “Why should I enroll?” “How much should I consider saving?” and “What investment options are right for me?” participants are able to take action as they go, allowing them to start saving in as little as five minutes. And they can do it from any device, whenever and wherever they choose.

The tool leverages data from multiple sources and combines it with what the individual tells us along the way to deliver a personalized retirement planning experience unique to each participant. The clarity and confidence My Virtual Coach provides, in turn, helps individuals make better decisions about retirement savings.

The result? More people saving more for retirement. Nearly half of those who use the tool for enrollment defer 10 percent or more. The average pre-tax deferral for 401(k) participants using My Virtual Coach enrollment is 7.6 percent. That sits well above the 4.91 percent average deferral for first-year enrollment via traditional enrollment methods.^* And even above the 6.78 percent average deferral via new online quick enroll methods. In addition, by using My Virtual Coach, one third of participants choose a voluntary annual increase in their deferral.

“My Virtual Coach provides easy steps so people can understand, make decisions and take action.” says Joleen Workman, assistant vice president of retirement and income solutions. “It’s all about making it easy and giving people confidence that there is a clear path to progress.”