New Principal Platform Helps Small and Medium Businesses Expand Retirement Plan Access
Principal(R) Flex allows advisors to deliver quicker baseline cost assessment and flexible plan design to business owner clients
The (2) plan packages, Principal(R) Flex and Principal(R) Flex-Open feature advisor benefits, including:
Easily arrive at ballpark baseline cost--with fewer inputs
Choose investment options to fit their SMB client strategy
Select the expense collection option that better helps clients budget for plan costs
Evaluate plans quickly with transparent cost structure
Compensation flexibility to help fit the needs of financial professionals
"Principal serves more than 37,000 SMB clients with nearly (1).(3) million participants," said
Depending on the respective Principal Flex package selected, advisors can leverage several advantages for employer clients including offsetting administrative costs, tax saving strategies and paperwork reduction. Principal(R) Flex packages also offers participant services and additional customizable plan features typically enjoyed by larger organizations.
Growing retirement plan market demands more efficient access
SMBs, which have 500 or fewer employees, are the backbone of the
"Driven by our commitment to continued innovation in retirement solutions, Principal(R) Flex was delivers flexibility in plan design, investment selection, expense collection, and compensation while offering employers simplicity in how the plan services are provided," said Morris. "Our goal is to build plans that help employers take care of their employees' future lives but spend less time on administrative complexity."
Growing Demand for Competitive Benefits Packages
With 69percent of small
To keep business running and growing, employers need to find and hire good talent. The longer this market stays strong, the tighter the employment market may get.
"The flip side to a great job market is that it puts extra pressure on recruiting and retention, so employer-sponsored retirement plans are moving from a want to a need," said Morris. "Principal(R) Flex helps advisors build attractive plans for small business owners, tailored to their needs."
Advisors are encouraged to visit principal.com/smb to learn more about Principal(R) Flex and available tools and resources to efficiently start the retirement planning process with SMBs.
Footnotes:
1. Plans under
2. 2018 Small Business Profile,
3. Retirement Insights., Retirement Markets,
4. Heart + Hustle of
5.
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