American Express Retirement Services Launches Personalized Retirement Evaluation Program; Personalized Reports for Participants Designed to Inform and Motivate.

Business Editors & Banking/Finance Writers

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 5, 2002

American Express Retirement Services' Financial Education and Planning Services group today announced the Personalized Retirement Evaluation Program with redesigned personalized education tools. The program provides employees in 401(k) or other defined contribution plans an improved visual picture of their retirement profile, which can serve to better motivate employees to take necessary actions to make sure they are on track to meet retirement goals.

The Personalized Retirement Evaluation Program consists of four unique retirement planning tools driven by a technology that generates a variety of different savings profiles. The tool that best fits each employee is electronically matched based on an employee's savings profile. An employee's own payroll and plan information is then used to generate a meaningful analysis of their retirement savings needs, whether it be participation or deferral rate, goal-setting or asset allocation. Employees receive this personalized, printed statement directly in the mail.

Effective use of full-color graphics and text makes the information easy to understand. The program offers a variety of cover photos organized by visual themes. Most important, each of the program's four products has a clear message motivating employees to take action.

"It's hard to match the effectiveness of proactively and personally communicating with an employee about their savings needs and opportunities," said Rusty Field, vice president of American Express's Financial Education and Planning Services. "Providing tools like the Personalized Retirement Evaluation Program can be an excellent way to motivate people to take action and make changes, if necessary, to stay on track toward their retirement goal."

The elements of the program include:

-- Impact Analysis: Targeted to individuals who are either not participating or participating under the company match (if applicable), this personalized report uses an employee's salary information to show how money can grow, the cost of waiting and what the impact of an increase in their contribution rate is on net-take home pay.

-- Impact Analysis with Quick Enroll: Plan Sponsors can choose to include a Quick Enroll form with the Impact Analysis to provide a powerful call-to-action method. By simply signing the Quick Enroll form, the employee agrees to a client-selected deferral rate and investment election(s) and is enrolled in the plan.

-- Goal Achievement Projection (G.A.P.)(R): The Goal Achievement Projection(R) is geared toward helping plan participants set a retirement goal, a key component in a successful retirement savings program. Using a participant's salary and age information, it creates a projection outlining what a participant's estimated annual retirement income needs will be based on the defined goal.

-- Personal Investment Education (P.I.E.) Guide(TM): The P.I.E. Guide(TM) helps plan participants better understand the investments offered in their plan and the importance of diversification through a user-friendly guide designed to help alleviate participants anxieties about making asset allocation decisions.

American Express Retirement Services' Financial Education & Planning Services (FEPS) unit delivers comprehensive financial education programs to organizations ranging from small businesses to Fortune 500 corporations. FEPS provides Web, phone, print and face-to-face education, guidance and advice to more than two million employees nationwide.

American Express Financial Advisors is one of the nation's leading financial planning companies. It is part of the American Express Financial Corporation, which currently owns or manages more than $238 billion in assets. Through a network of more than 11,300 financial advisors and its online services, the company provides comprehensive, long-term financial planning and high quality financial products to more than 2.6 million clients throughout the United States.

American Express Retirement Services, a service group of American Express Financial Advisors, is a provider of services for defined contribution and 401(k) plans with total combined assets of more than $31 billion and a participant base of more than 1.2 million. For more information on American Express Retirement Services, and FEPS, visit http://www.americanexpress.com/sponsors.

Registered investments and financial planning services are offered through American Express Financial Advisors Inc., Member NASD. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer. Retirement plan and trust related services are offered through American Express Trust Company.