100th Contract Signed for Financial Engines’ Income+

Business Wire

SUNNYVALE, Calif.--(BUSINESS WIRE)--

Financial Engines (FNGN), America's largest independent registered investment advisor, today announced that it has signed its 100th plan sponsor contract for the Income+℠ feature1, including 41 of the Fortune 500®. When all signed contracts are rolled out, Financial Engines will be able to serve the retirement income needs of 1.9 million plan participants with over $180 billion in retirement assets.2

As 78 million Baby Boomers face retirement3, more of America’s largest companies are offering Income+ to help participants turn their 401(k) savings into income that can last for life.4 To date, 45 plan sponsors have rolled out Income+, with more scheduled to go live in the coming months.5

“This milestone reflects plan sponsors’ strong desire to help near-retirees and retirees secure reliable retirement income,” said Jeff Maggioncalda, CEO of Financial Engines. “Income+ lets plan sponsors provide that critical help without changing their plan line-ups and gives participants flexibility and help from an advisor who can tailor a retirement income plan that meets their unique needs.”

Launched in January 2011 as an extension of the Financial Engines® Professional Management service, Income+ can protect near-retirees from big losses in anticipated retirement income as they approach retirement and generate steady monthly payouts to retirees from their 401(k) accounts that can last for life. Participants can choose when to start, stop or receive an additional payout, and they have access to objective help from a licensed, non-commissioned advisor. Participants pay no additional fees for the Income+ feature, and they can cancel at any time without penalty. And, for participants who choose to roll over their 401(k) when changing a job or retiring, Financial Engines’ Professional Management service, including the Income+ feature, is available for their IRA accounts.

For plan sponsors, the optional, out-of-plan annuity eliminates both the need for an in-plan annuity and default risk for the plan. Further, there is no regulatory uncertainty for plan sponsors, because, as a managed account, Professional Management with Income+ qualifies for ERISA and QDIA protections. Finally, there is no product conflict of interest as Financial Engines is a fiduciary and independent advisor.

An innovative solution to a complex and growing problem, the Income+ methodology recently received U.S. patent protection.6

About Financial Engines: (FNGN)

Financial Engines, America’s largest independent registered investment advisor, is dedicated to making high-quality retirement help available to everyone — regardless of how much money they have. We’re proudly independent, which means we don’t sell products, make money, or earn commissions based on our investment recommendations. The companies that choose to work with us offer our services to their workers as a valuable employee benefit.

Co-founded in 1996 by Nobel Prize-winning economist Bill Sharpe, Financial Engines currently offers personalized advice for saving, investing and living in retirement to millions of workers nationwide. Our strong ties with employers give us a unique opportunity to form direct relationships with their employees.

Some people love the challenge of investing. Others prefer to focus their time elsewhere, but everyone needs to plan for retirement. Whatever their interest level in investing, Financial Engines combines cutting-edge technology and a personal, human touch to help all types of investors reach their retirement goals.

All advisory services provided by Financial Engines Advisors, L.L.C., a federally registered investment advisor and wholly-owned subsidiary of Financial Engines, Inc. Results and signed contracts reflect both advised and sub-advised services. Financial Engines does not guarantee future results.

Forward-Looking Statements

This press release contains forward-looking statements, including those related to the anticipated features and benefits of our Income+ retirement income solution, employers’ interest in helping employees and the growth of our business, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, demand for and perceived benefits of our Income + services, our ability to successfully deliver our Income+ services or to deliver them as designed, our relationships with plan sponsors, our ability to compete, our regulatory environment, and other risks, uncertainties and factors contained in our SEC filings. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. Unless required by law, Financial Engines undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

1 As of September 30, 2013

2 As of September 30, 2013. Plan data includes plan assets for all age cohorts, and plans where advisory services may already be available.

3 U.S. Census Bureau July 1, 2006

4 With purchase of optional out-of-plan annuity

5 As of September 30, 2013

6 Financial Engines® Income+ is a feature of Professional Management intended to provide income payouts from a 401(k). The Income+ feature is protected by U.S. Patent No. 8,521,633.

Contact:
Financial Engines
Diane Paul, 408-498-6797
dpaul@financialengines.com
or
H+K Strategies
Carley Hummel, 714-913-9942
Carley.Hummel@hkstrategies.com

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