PRINCIPAL FINANCIAL GROUP: New Principal®IMPACT 401(k) package helps businesses provide an efficient savings and retirement plan designed to attract and retain employees
Principal Financial Group issued the following announcement on May 13.
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 No. 1 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.
Original source: https://www.principal.com/about-us/news-room/news-releases/new-principal%C2%AE-impact-401k-package-helps-businesses-provide-efficient-savings-and-retirement-plan-designed-attract-and-retain-employees