The Principal has issued a 10 percent retirement challenge to retirement plan participants.
The firm is encouraging them to save at least 10 percent of their salary for retirement every year. The Principal also is now offering a Retirement Wellness Report to participants, which shows them if they are saving enough to reach a successful retirement.
“Nationwide as few as one in five employees are on track for retirement, making financial stress a constant pressure in their lives. That’s why we’re challenging individuals to step up and exercise their financial fitness in the same way they do their physical wellness to make a significant impact on the long-term health of their retirement savings,” said Jerry Patterson, senior vice president Retirement and Investor Services for The Principal.
The Retirement Wellness Report gives participants an at-a-glance view of their estimated monthly retirement income and compares that to the retirement income they will need each month. For those with an income gap, simple illustrations show the impact of a deferral increase and they are encouraged to increase their contribution election or sign up for automatic increases to help get them on track.
Last year, The Principal introduced a Retirement Readiness Report for employers showing how many of their employees are on track to reach a successful retirement.