Schwab Retirement Plan Services Inc. launched a new 401(k) plan designed to lower costs, simplify investing and help workers better prepare for retirement. Called the Schwab Index Advantage, the plan integrates 401(k) features in a unique way to help workers save and invest for retirement.

"It's time to rethink the 401(k) plan and pay closer attention to workers who, now more than ever, are worried about their retirement savings, are often confused by their plan's complexity and may be missing out on the help they need to save and invest for retirement," said Jim McCool, executive vice president and head of Institutional Services at Schwab. "With Schwab Index Advantage we are developing a new alternative for employers and their employees by focusing on the two things that really matter: low cost and independent advice. No major 401(k) provider has offered this type of approach, until now."

To help drive costs down, Schwab Index Advantage provides index mutual funds with low operating expenses instead of the often more expensive actively managed mutual funds found in most 401(k) plans. Focusing on simplicity, the program includes a professional, independent advisory service that develops a savings and investment program with the goal of increasing savings for individuals at retirement. The program also includes an interest-bearing, FDIC insured savings feature through Schwab Bank.