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| [February 20, 2013] |
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TIAA-CREF and AARP Launch AARP® College Savings Solutions from TIAA-CREF
NEW YORK --(Business Wire)--
TIAA-CREF, a leading financial services provider, and AARP today
announced a new program designed to provide AARP members with
comprehensive education and information on college savings plans.
Through AARP®
College Savings Solutions from TIAA-CREF, AARP members can learn
about the many benefits of college savings plans and gather specific
information about the various 529 plans available to them.
"Saving for college has become a family affair, and parents and
grandparents alike can play a vital role in helping students attend -
and thrive - at their preferred college or university. However, with
only 30 percent of parents using 529 accounts to save for college,1
many families are missing out on a fantastic opportunity to invest in
their children's future," said Roger W. Ferguson, Jr., president and
chief executive officer, TIAA-CREF. "We feel privileged to work with
AARP and help its members support the educational needs of their loved
ones, so they can begin their adult lives with a strong foundation."
AARP members will have access to a customized, comprehensive website to
help them better understand how college savings plans work and the many
tax benefits these plans may afford most families. It also provides
objective information about 529 plans, including the state-sponsored 529
plans managed by TIAA-CREF.
The website provides information to assist AARP members on how to open
accounts with these plans or make gifts to family members' existing
TIAA-CREF-managed 529 plans from anywhere they have Internet access.
Members also can speak with education savings specialists by phone to
get answers to their questions about college savings plans.
"TIAA-CREF designed this program with AARP members and their families in
mind, and we're pleased they have access to another product that meets
the high service and real quality standards they have come to expect of
a product or service carrying the AARP name," said John Wider, CEO of
AARP Services, Inc.
Studies show that people who use 529 college savings plans are more
successful college savers than those without 529 plans. The College
Savings Foundation's 2012 parent survey2 found that 22
percent of 529 owners have saved between $10,001 and $25,000, while only
9 percent of non-529 account owners have saved a similar amount.
Likewise, 18 percent of 529 owners reported saving between $25,001 and
$50,000. Only 4 percent of non-529 account owners managed to save as
much. Overall, parents who have not opened a 529 plan are the least
effective college savers - nearly half have no college savings.
"529 plans are tremendously helpful in getting families on the right
path to funding a college education, nd getting the entire family
involved - parents, grandparents and children - reinforces the
importance of setting and achieving savings goals," said TIAA-CREF's
Ferguson. "It sets a powerful example for younger generations as they
establish their financial habits."
AARP College Savings Solutions from TIAA-CREF is available to AARP
members nationwide. The program is launching with the support of a new
marketing campaign, "Power a Dream," which focuses on the positive
influence AARP members can have on their children's and grandchildren's
lives by contributing to their college savings and helping them prepare
for higher education.
With outstanding student loan debt totaling $956 billion3
across the country, TIAA-CREF is dedicated to helping Americans
successfully save for college and manage their finances wisely.
TIAA-CREF is one of the largest and longest-tenured 529 program managers
in the country, offering low-cost, high-value, direct-sold 529 programs
since 1998. Through TIAA-CREF Tuition Financing, Inc., the firm
successfully manages 11 state-sponsored 529 college savings plans,
including California, Connecticut, Georgia, Kentucky, Michigan,
Minnesota, Mississippi, Oklahoma, Oregon, Vermont and Wisconsin.
For more information about AARP College Savings Solutions from
TIAA-CREF, visit https://www.aarpcollegesavings.com/.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org)
is a national financial services organization with $502 billion in
assets under management (as of 12/31/2012) and is the leading provider
of retirement services in the academic, research, medical and cultural
fields.
About AARP
AARP is a nonprofit, nonpartisan organization with a membership that
helps people 50+ have independence, choice and control in ways that are
beneficial and affordable to them and society as a whole. AARP does not
endorse candidates for public office or make contributions to either
political campaigns or candidates. We produce AARP The Magazine, the
definitive voice for 50+ Americans and the world's largest-circulation
magazine with 35.1 million readers; AARP Bulletin, the go-to news source
for AARP's millions of members and Americans 50+; AARP VIVA, the only
bilingual U.S. publication dedicated exclusively to the 50+ Hispanic
community; and our website, AARP.org. AARP Foundation is an affiliated
charity that provides security, protection and empowerment to older
persons in need with support from thousands of volunteers, donors and
sponsors. We have staffed offices in all 50 states, the District of
Columbia, Puerto Rico, and the U.S. Virgin Islands. Visit: aarp.org.
About AARP Services, Inc.
AARP Services, Inc., founded in 1999, is a wholly-owned taxable
subsidiary of AARP. AARP Services manages the provider relationships for
and performs quality control oversight of the wide range of products and
services that carry the AARP name and are made available by independent
providers as benefits to AARP's millions of members. The provider offers
currently span health products, financial products, travel and leisure
products, and life event services. Specific products include Medicare
supplemental insurance; credit cards, auto and home, mobile home and
motorcycle insurance, life insurance and annuities; member discounts on
rental cars, cruises, vacation packages and lodging; special offers on
technology and gifts; pharmacy services; legal services; and long term
care insurance. AARP Services also engages in new product development
activities for AARP and provides certain consulting services to outside
companies.
The AARP College Savings Solutions from TIAA-CREF is a co-branding
marketing arrangement and is provided by TIAA-CREF not AARP or its
affiliates. The information presented in this article is for educational
purposes only and does not constitute an offer to sell any security
referenced in this article. TIAA-CREF pays a royalty fee to AARP for the
use of its intellectual property. These fees are used for the general
purposes of AARP. Please contact TIAA-CREF directly for details.
1 http://www.collegesavingsfoundation.org/pdf/CSFExecSummaryStateofCollegeSavingsSurvey.pdf
2 http://www.collegesavingsfoundation.org/pdf/CSFExecSummaryStateofCollegeSavingsSurvey.pdf
3 http://www.newyorkfed.org/newsevents/news/research/2012/an121127.html
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