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New Report Can Help Financial Professionals Keep Investors' Plans on Track

Resource from The Principal offers quick litmus test for health of retirement savings

October 26, 2010 (Des Moines, Iowa) - Nearly half of American workers are losing sleep over their ability to enjoy the same quality of life they have now while in retirement[1], according to the latest Principal Financial Well-Being IndexSM.

With a new resource from the Principal Financial Group®, financial professionals may be able to help investors take steps to get them back on track to achieve their retirement goals.

The Savings-to-Employment Income Ratio is a quick litmus test for estimating the current health of an investor’s retirement savings. Tips for using the ratio are included in a new white paper for financial professionals from The Principal® titled “When the Destination is Retirement: A Way to Keep Investors’ Plans on Track.”

“Retiring with sufficient savings can seem daunting. Financial professionals play a critical role in helping clients build a personalized plan to meet their goals,” said Drew Denning, vice president of the retiree services division at The Principal. “This paper provides resources for financial professionals to help investors evaluate how well they are doing in saving for retirement and possible ways to revise their strategy so they have more confidence about their financial futures.”

The Savings-to-Employment Income Ratio requires only a few pieces of information to help determine if savings might be on track. The paper then outlines the key drivers of the ratio that are most within an investor’s control:

  • The savings rate
  • The age at retirement
  • The income replacement ratio

With help from a financial professional, adjusting one or more of the drivers may help improve the outlook and ultimate success of an investor’s retirement savings efforts. The paper also reveals common misconceptions about saving for retirement and equips financial professionals with resources to explain those issues to clients.

The white paper, authored by Noelle Fox, senior investment and product analyst at The Principal, is available to financial professionals on The Principal Research Center. It is the latest resource from Principal Retirement Income EdgeSM, a comprehensive program that provides financial professionals with education, tools and other retirement income planning resources to help them grow and manage their businesses.

For more news and insights from The Principal, connect with us on Twitter at:  http://twitter.com/ThePrincipal.

About the Principal Financial Group

The Principal Financial Group® (The Principal®)[2] is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $284.7 billion in assets under management[3] and serves some 18.9 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG.

 

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Before investing, you should carefully consider a fund’s investment objectives, risks, charges, and expenses. Contact your financial professional, visit principalfunds.com, or call 800-222-5852 to obtain a prospectus containing this and other information. Read the prospectus carefully before investing.

Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc.

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[1]
The Principal Financial Well Being Index 3rd Quarter 2010, 45 percent of workers report “being able to enjoy the same quality of life I live now” keeps them awake at night.
[2]
The Principal Financial Group and The Principal are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
[3]
As of June 30, 2010.

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Call 515.246.4907 or see the full Media Relations contact list.

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