Principal launches new platform
Principal is announcing a new digital offering to help small business clients and their financial professionals build retirement benefits. The new platform – Simply Retirement – is designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.
The platform – powered by Ubiquity – enables users to create 401(k) proposals online without the need for in-person meetings. 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, and recordkeeping fees don’t change as clients’ plan assets change.
“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. The world has changed, but the importance of having a short- and long-term savings plan has not. 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. 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.” – Jerry Patterson, senior vice president of retirement and income solutions at Principal.