Vanguard is partnering with HelloWallet to offer financial education to employees within 401(k) plans that the Valley Forge, Pa.-based investment company administers, a firm spokesperson confirmed today.

The nearly 40-year-old firm with more than $2 trillion in U.S. and international mutual funds said that it expects participating employees will benefit from the “financial wellness service” by saving more for retirement.

Vanguard spokeswomen Linda Wolohan stated that the investment company will offer this service to employees of companies that it to administer their 401(k) plans. There are no projections on future subscriptions to the service, but is expected to “appeal to a lot of companies,” she said in an email.

HelloWallet, based in Washington, D.C., is a company that helps to offer guidance “that aligns corporate spending with human capital needs,” according to the Jan. 22 announcement. It is backed by Morningstar, Inc., TD Fund, Grotech Ventures and Revolution LLC.

“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,” Vanguard Head of Participant Experience Amy Cribbs said. “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.”

The personal guidance component, which incorporates “behavioral economics and the psychology of decision-making,” includes the gamut of employee spending practices.

“HelloWallet creates budgets and analyzes trends in members’ financial behavior to recommend how they can make the most of their financial opportunities (e.g., 401(k) plan, health savings account, flexible spending account, or insurance), prioritize financial decisions, and identify ways to stretch their paycheck further,” the joint-statement said Wednesday.

The service will be available through HelloWallet’s website and mobile app.

“This partnership will allow us to provide more Americans with the guidance necessary to increase their monthly savings, pay off debt faster, and improve their use of health and retirement benefits,” said Matt Fellowes, HelloWallet founder and CEO.

Register or login for access to this item and much more

All Employee Benefit News content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access