For plan participants who want to lock down a guaranteed amount of income before retirement, the Principal Financial Group® has created Principal Pension Builder, an option that allows a deferred income annuity to be purchased while participating in the plan.
Offered as an option in a defined contribution plan, Principal Pension Builder lets participants build a steady stream of guaranteed income for life by directing a portion of their retirement plan contributions into a deferred income annuity, according to an Oct. 20 news release. They can transfer part of their retirement plan account balance to purchase guaranteed income, or direct a portion of their plan contributions toward purchasing guaranteed income.
For plan sponsors, adding Principal Pension Builder to their retirement plan helps manage their fiduciary responsibility to offer a range of investment choices. It gives participants an opportunity to diversify their in-plan retirement savings and play an active role in planning for retirement income, allowing them to build a guaranteed income stream.
According to the news release, plan sponsors can add Principal Pension Builder to their retirement plans later this year, and plan participants can begin contributing to it in March 2016.
For information about The Principal's value-adds for advisors, visit their NAPA Partner Corner page.
