Simply Retirement by Principal® Offers New 401(k) Solution for Start-up Retirement Plans
Despite recent market volatility, 85% of small businesses with one to 100 employees say they’re stable or growing1, according to new research from Principal Financial Group®. Today, Principal® announced a new digital offering to help small business clients and their financial professionals build retirement benefits programs that can attract and retain top talent and support continued growth. With more than 5 million businesses without retirement plans2, Simply Retirement by Principal®, is designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.
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“Millions of small businesses do not offer a savings plan to their employees today, though our research shows the workplace is among the best places to make a positive impact on long-term savings habits,” said Jerry Patterson, senior vice president of retirement and income solutions at Principal. “The world has changed, but the importance of having a short- and long-term savings plan has not.”
Simply Retirement by Principal® includes:
- Seamless setup.
Users can create 401(k) proposals quickly online through a straightforward process that reduces paperwork. No in-person meetings are required. And if help is needed, it’s just a phone call away. - Experience and technology.
Simply Retirement by Principal® combines 75-plus years3 of expertise in retirement solutions and investments from Principal with the simplicity and cost-effectiveness of the Ubiquity Retirement + Savings® recordkeeping platform and services. - Predictable pricing.
Small businesses pay a $500 one-time setup fee and a $150 monthly recordkeeping fee. Each participating employee pays $6 per month, unless the business owner chooses to pay this fee. Recordkeeping fees don’t change as clients’ plan assets change, helping business owners with predictability4. - A variety of strong investment options.
Principal investment options offer strong performance with a competitive return, helping provide growth potential of employee contributions and any matching contributions the business owner provides.
“The COVID-19 health crisis has changed the world in which we work, and we know that many small businesses have a lot to contend with. Their focus is on what’s most important right now, and we understand that,” said Patterson. “When the situation allows, offering a retirement plan can help business owners take care of their employees in a new way, build positive morale and culture, and help retain and compete for qualified employees in the future.”
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