Vanguard has struck a deal with HelloWallet, a financial wellness service, to help employees save more for retirement by addressing the money pressures and behaviors that stand in their way.
HelloWallet provides personalized, unbiased guidance to individuals on managing their debt, spending wisely and maximizing their company benefits. Vanguard hopes the service will get employees more engaged in managing their finances.
HelloWallet uses behavioral economics and the psychology of decision-making, paired with technology, to look at an individual’s debt, spending and savings behaviors. It then provides guidance on how to make appropriate decisions around those areas.
“Vanguard’s research and years of experience with millions of investors have shown that most employees simply want someone to tell them what to do. While we will continue to provide educational content and calculators to participants as important sources of guidance, HelloWallet is based on a deep understanding of an individual's needs, preferences, and behaviors, which results in more personal guidance,” said Amy Cribbs, head of Vanguard Participant Experience.
Employee members currently access the service through HelloWallet’s website and mobile app. Members input their goals and priorities and add their financial information, including income, bank accounts, credit cards, retirement plans, medical and other insurance, and investments. HelloWallet creates budgets and analyzes trends in members’ financial behavior to recommend how they can make the most of their financial opportunities, including their 401(k), prioritize financial decisions, and identify ways to stretch their paycheck further.
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies. As of December 31, 2013, Vanguard managed more than $2.45 trillion in U.S. mutual fund assets.