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Small Retirement Plans are Big Opportunity for Financial Professionals

The Principal unveils best practices to efficiently tap into growing market

November 1, 2011 (Des Moines, Iowa) – When it comes to small retirement plans, the opportunity for financial professionals is huge. Nearly three-quarters of small businesses currently do not offer a retirement plan[1]. But the small plan market is expected to grow significantly over the next few years. Since most (90 percent) small businesses use a consultant or financial professional to assist with retirement plans,[2] there is tremendous potential for those who know how to sell and service small plans efficiently.

A new small plan market tool kit from the Principal Financial Group® offers resources to help financial professionals tap into that growing market and build strong practices with diversified revenue streams.

The toolkit includes “Boosting Profitability in the Small Retirement Plan Market”: a white paperthat offers specific best practices and tips from financial professionals who are successful in this market and shows how others can take advantage of the opportunity.

“Today’s small retirement plan market is not only large, it also has the potential to be lucrative—as long as financial professionals manage their client block efficiently,” said Tom Donnelly, regional vice president, retirement and investor services, The Principal®. “Each small plan sold can generate a steady stream of revenue and creates a wealth of cross-selling opportunities. The key is to work with a service provider that can help financial professionals be efficient and maximize their profitability in the small plan market.”

The toolkit also includes a small plan prospecting checklist, information about the value of working with a third party administrator (TPA) and a non-branded flier on the benefits of starting up a retirement plan that financial professionals can use with small business owners.

The Principal offers financial professionals and their small plan clients similar services and extensive support provided to large plans, including:

  • Prospecting and sales support through experienced sales and service professionals in over 35 local offices and extensive front- and back-office support
  • Comprehensive plan services with flexible service and pricing models, administrative services and proactive communication on behalf of the financial professional
  • Expanded revenue opportunities through a full suite of plan and retail products and participant asset retention services
  • Fiduciary protection with The Principal Warranty, which provides a level of both investment fiduciary support and service warranty[3]

For more news and insights from The Principal, connect with us on Twitter at

About the Principal Financial Group

The Principal Financial Group® (The Principal®)[4] is a global investment management leader including retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $320.8 billion in assets under management[5] and serves some 17.8 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. For more information, visit

Small Business Retirement Plan Availability and Worker Participation, March 2010, U.S. Small Business Administration Office of Advocacy
Spectrum Group, Retirement Market Insights, 2011
For informational purposes only and does not affect the terms and provisions defined in any term of provision of The Principal Warranty. For comprehensive warranty details on the areas of coverage, see The Principal Warranty – Investment Fiduciary Support and Service Warranty documents. Principal Life Insurance Company is not a fiduciary in the broader context of operating any plan.
“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 September 30, 2011.

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Call 515.246.4907 or see the full Media Relations contact list.

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