Noting that more than 5 million businesses still do not have retirement plans, Principal has put forward a new digital offering designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.
Simply Retirement by Principal includes a seamless setup, allowing users to create 401(k) proposals online through a straightforward process that reduces paperwork and does not require in-person meetings.
Principal will partner with Ubiquity Retirement + Savings for its recordkeeping platform and services.
Small businesses pay a $500 one-time setup fee and a $150 monthly recordkeeping fee, with each participating employee paying $6 per month, unless the business owner chooses to pay this fee. In addition, recordkeeping fees won’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,” notes 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.”
