Press Release

401k Participant Survey Reveals Goal-Setting Drives Confidence In Retirement Planning

Survey Findings Consistent Even During the Bear Market

MINNEAPOLIS, October 24, 2002 -- American Express Retirement Services today announced the results of its 2002 Participant Satisfaction Survey, which found that participants who are confident in their retirement planning are more likely to have set a retirement goal.

The survey, which is sent out biannually nationwide to participants in retirement plans serviced by American Express Retirement Services, found that participants who say they have calculated the amount of money they will need to retire are 146 percent more likely to be “very confident” that they are doing a good job preparing financially for retirement than those who have not calculated a goal. The survey also found that participants in plans serviced by American Express Retirement Services had a higher likelihood of determining a retirement savings goal-52 percent of participants versus the Spectrem Group’s national benchmark of 32 percent.

“These results validate what we’ve been telling both our clients and their plan participants – that goal-setting contributes to higher confidence levels,” said John Baker, senior vice president of Client Services for American Express Retirement Services. “It’s a driving force behind much of our education efforts, and it’s gratifying to see that the number of our clients’ plan participants active in setting goals is above the norm. In a prolonged bear market like this one, confidence takes a hit. Setting a goal helps reinforce the long-term nature of 401k investing, the benefits of dollar-cost-averaging1 and asset allocation over a long period of time.”

The 2002 survey also found that 85 percent of participants are eager to receive additional, non-retirement financial services through the workplace. This is an increase from American Express’s 2000 survey that found 65 percent eager to receive additional, non-retirement financial services through the workplace.

“We’re not surprised that these findings support our strong belief that participants today are more eager than ever for their employers to support their entire financial wellness, not just their retirement needs,” said Baker. “Recent events in the market have made this even more urgent, and the numbers reflect that.”

The survey also measures overall participant satisfaction with plan features, services, investments and communications, and is designed to help plan sponsor clients study the satisfaction level and needs of their plan participants.

The participant satisfaction survey was mailed to over 10,000 randomly selected 401k plan participants, and the results were based on a 495 returned surveys-a return rate of 5 percent. The margin of error for the study results is plus or minus 4.5 percent at the 95 percent confidence level. To administer the survey, American Express Retirement Services teamed up with Spectrem Group, a recognized leader in information and strategic consulting within the investment services industry.

American Express Retirement Services, a service group of American Express Financial Advisors, is a provider of services for defined contribution and 401k plans with total combined assets of more than $29 billion and a participant base of more than 1 million as of June 30, 2002. Based in Minneapolis, they provide corporations, unions and municipalities nationwide with a complete package of financial education, recordkeeping and trustee services for qualified retirement plans.

###

401khelpcenter.com, LLC is not the author of this press release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this press release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.