GuidedChoice has created a retirement plan “reality check” for participants to see how well prepared they are for retirement and how much income their savings will produce. The program also guides them to save more and offers access to professional advice.

While participation rates in 401(k) plans are at record highs, contribution rates and account balances are too small, GuidedChoice noted.

“Inducing at-risk participants to plan more prudently has proven difficult,” GuidedChoice said. “The new offering meets a need in the marketplace for a participant ‘reality check’ that is both extremely clear and immediately actionable.”

GuidedChoice CEO Sherrie Grabot said, “Providing a retirement ‘reality check’ is not a brand-new idea, but it’s one that has never been executed in a way that tracks how real people think, plan and act. We’ve always stressed a participant-focused approach, and Retirement Readiness is an example of how that focus can make a solution more effective.

-- This article first appeared on Money Management Executive.