Despite recent market volatility, Principal Financial Group finds 85% of small businesses say they’re stable or growing.
It’s one reason Principal launched a new digital 401k offering for small businesses.
Noting that there are more than 5 million businesses without retirement plans, Simply Retirement by Principal is designed to make 401kplans more accessible to businesses with fewer than 100 employees.
“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,” Jerry Patterson, senior vice president of retirement and income solutions at Principal, said in a statement. “The world has changed, but the importance of having a short- and long-term savings plan has not.”
It includes:
Seamless setup
Users can create 401k 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 years 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 predictability.
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,” Patterson concluded. “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.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
