New Principal® IMPACT 401(k) Package Helps Businesses Provide an Efficient Savings and Retirement Plan Designed to Attract and Retain Employees
Combines tailored services, broad digital capabilities, top-tier
investment options, and competitive pricing to help drive positive
retirement outcomes
DES MOINES, Iowa–(BUSINESS WIRE)–Principal Financial Group® continues to innovate
retirement plan solutions for small- and medium-sized businesses (SMBs)
with the launch of Principal® IMPACT. This
next-generation 401(k) retirement plan package is designed specifically
to deliver best-in-class resources and support to advisors and their
clients new to Principal from $1 million to $10 million in plan assets.
Principal® IMPACT rounds out an impressive full-service
continuum of solutions for plan sponsors of all sizes, including defined
contribution plans, defined benefit plans, employee stock ownership
plans, and non-qualified deferred compensation plans.
“We are really excited about the introduction of Principal®
IMPACT, which amplifies the ability of Principal® to serve as
a ‘one-stop-shop’ for multiple retirement plan needs across all employer
market segments,” said Jerry Patterson, senior vice president of
Retirement and Income Solutions at Principal. “This new offering brings
together competitive pricing and services that are often reserved for
large employers.”
Capitalizing on Market Insights and Needs
In combination
with our market experience, the development of Principal®
IMPACT was driven by the needs of retirement plan advisors and sponsors.
Among advisors, the number one expectation is flawless service, closely
followed by need for responsiveness.1 And, with a strong
economy and more SMBs than ever before, there’s lots of continued
growth. Today, 95% of all retirement plans are in the under $10 million
market [600,000 plans].2
“Small- and medium-sized businesses are motivated to support their
people,” said Patterson. “Principal® IMPACT helps employers
take care of their employees’ future lives while spending less time on
administrative complexity.”
Powered by People and Technology
Principal®
IMPACT is built on a foundation of 75 years in the retirement plan
business and a commitment to deliver high touch service to our customers
by a workforce dedicated to serve. Principal couples that with the
latest in technology designed to help make plan administration easier
for plan sponsors and make retirement savings and financial wellness
inviting and engaging for employees.
-
Client-Focused Service Approach: Employs a dedicated,
cross-disciplinary team with service expertise to address the specific
needs of Principal® IMPACT clients and their advisors. The
collaborative team provides personalized support – from onboarding to
annual review. -
Industry Leading Technology and Digital Resources: Boosts
saving rates for participants with interactive, digital resources that
help improve their financial confidence. The broad range of resources
help make saving for retirement unintimidating and easy to understand
and implement for employees. Participants who use our digital
resources have a 10-point higher average Retirement Wellness Score, an
indicator that helps retirement plan participants quickly see how well
they’re tracking toward their retirement goals.3 -
Financial wellness beyond retirement savings: From helping
younger workers manage student loan debt and supporting parents
exploring scholarship options for kids headed for college to preparing
a will or leveraging the power of a well-constructed target date fund,
Principal® IMPACT is designed to address financial needs
and more for the SMBs Principal serves. -
Modern investment lineup: Features institutionally managed,
zero revenue investments designed specifically for retirement plans.
Based on 2018 research from Principal, approximately 78% of the Z
share class of Principal-branded investment options are in the top
half of Morningstar category peer groups.4 -
Ongoing Fiduciary Support: Services to help manage fiduciary
responsibilities and reduce administrative work so SMBs can have more
time to focus on their business. -
Low Cost and Transparent Pricing: Given the constant pressures
on SMBs to be efficient, Principal® IMPACT
also features very competitive and transparent pricing. SMBs can be
confident in understanding the value they are getting for their
investment in this benefit.
“At the end of the day, participant outcomes are the top focus,” said
Patterson. “Principal® IMPACT models our holistic approach to
retirement planning, as we recognize that it is only one component of
participant’s broader financial wellness journey.”
For more information about Principal® IMPACT, please visit principal.com/smb.
About
Principal®
Principal helps people and
companies around the world build, protect and advance their financial
well-being through retirement, insurance and asset management solutions
that fit their lives. Our employees are passionate about helping clients
of all income and portfolio sizes achieve their goals – offering
innovative ideas, investment expertise and real-life solutions to make
financial progress possible. To find out more, visit us at principal.com.
Principal, Principal and symbol design and Principal Financial Group are
trademarks and service marks of Principal Financial Services, Inc., a
member of the Principal Financial Group.
The Retirement Wellness Planner information and Retirement Wellness
Score are limited only to the inputs and other financial assumptions and
is not intended to be a financial plan or investment advice from any
company of the Principal Financial Group® or plan sponsor.
This calculator only provides education which may be helpful in making
personal financial decisions. Responsibility for those decisions is
assumed by the participant, not the plan sponsor and not by any member
of Principal®. Individual results will vary. Participants
should regularly review their savings progress and post-retirement needs.
Insurance products and plan administrative services provided through
Principal Life Insurance Co. Principal Funds, Inc. is distributed by
Principal Funds Distributor, Inc. Securities offered through Principal
Securities, Inc., 800-547-7754, member
SIPC and/or independent broker-dealers. Principal Life, Principal
Funds Distributor, Inc. and Principal Securities are members of the
Principal Financial Group®, Des Moines, IA 50392.
Certain investment options and contract riders may not be available in
all states or U.S. commonwealths.
1 BrightWork Partners. Absolutely Essential Criteria. 2017.
2
Retirement Markets. Retirement Insights, LLC. February 2019.
3
Principal Financial Group. Participant Data Report: Jan. 1 through Dec.
31, 2017. January 2018.
4 Principal Financial
Group. Principal® IMPACT: Retirement Plan Best Practices.
December 2018.
Contacts
Lonnetta Ragland, 515.878.1504, ragland.lonnetta@principal.com