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.”