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New Resources from Principal Funds Help Demystify Social Security

Three-step process helps financial professionals, clients maximize benefits

February 17, 2011 (Des Moines, IA) - According to the Social Security Administration, 74 percent of current retirees are receiving a reduced Social Security benefit.[1] Principal Funds has created a suite of resources for financial professionals to help their clients make the most of their benefits.

“Understanding the complexities of Social Security is not an easy task,” said Chad Terry, director of retirement solutions at Principal Funds. “It’s clear that investors need help to maximize their Social Security income.”

New resources from Principal Funds help demystify Social Security benefits, encouraging three simple steps to take with the assistance of a financial professional: 1) know your benefit, 2) understand your options, and 3) determine a plan to maximize your benefit.

Resources include:

  • Website dedicated to assisting financial professionals as they help their clients make important Social Security decisions. The continually updated website includes videos, a blog written by Terry, a benefits calculator and other tools
  • New thought-capital piece for financial professionals titled What You May Not Know About Social Security Benefits
  • Investor guide with a step-by-step process to help clients get the most from Social Security, including a planning worksheet for clients to complete prior to an appointment with a financial professional
  • FAQ that explains key Social Security concepts such as Full Retirement Age, spousal benefits and the calculations used to determine benefit reductions
  • Access to a team of retirement specialists ready to answer financial professionals’ questions on the complexities of Social Security

Terry said current data shows that Social Security often replaces about 40 percent of pre-retirement income,[2] and it is expected only to become more important to retirees over time.

“Many retirees may be missing out on hundreds of dollars each month because they’ve been unable to navigate the intricacies of the Social Security,” Terry said. “As a retirement leader, we simply want to help financial professionals and their clients take full advantage of their benefits.”

About Principal Funds

Principal Funds is a leading provider of mutual funds, with $61.4 billion in assets under management.[3] Principal Funds brings expertise in global investment management, asset allocation and retirement leadership to financial professionals and investors. Including its target-risk and target-date offerings, Principal Funds is the fifth largest manager of lifecycle funds in the industry.[4] The companies that make up Principal Funds are members of the Principal Financial Group®. For more information, visit

About the Principal Financial Group

The Principal Financial Group® (The Principal ®)[5] 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 $318.8 billion in assets under management[6] and serves some 19.1 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.

Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing. A prospectus containing this and other information can be obtained by contacting a financial professional, visiting, or by calling 800.222.5852. Read the prospectus carefully before investing.

A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

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.

Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.


Source: Social Security Administration Annual Statistics Supplement, 2009.
LIMRA analysis of U.S. Census Bureau’s Current Population Survey, March 2009 Supplement. Analysis based upon fully retired households. Age is the age of the head of household.
As of Sept. 30, 2010. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc.
FRC Mutual Fund Lifecycle Report 2Q10.
"The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
As of Dec. 31, 2010.

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