Principal® launches new retirement plan investment option focused on guaranteed rates of return
Includes new advisor resources to support participant savings growth during volatile market cycles
Principal Financial Group® launched the Principal Guaranteed Option (PGO), a new addition to its suite of fixed income investment options focused on capital preservation and return. The Principal Guaranteed Option boasts a compelling crediting rate at 3.05%* while providing more choice and flexibility to advisors and plan sponsors as they determine a fixed income strategy for their retirement plan. Regardless of a person’s life stage, fixed income investment options, such as the new Principal Guaranteed Option, can strengthen 401(k) portfolio diversity, preserve principal and support performance through differing market cycles.
“Whether navigating volatile markets or needing more predictability and stability in a portion of a participant’s long-term savings, the new Principal Guaranteed Option extends our fixed income offering to address these needs,” said Jerry Patterson, senior vice president of Retirement and Income Solutions at Principal. “It is one more option that enables plan participants to design an investment portfolio focused on outcomes that are important to them.”
The Principal Guaranteed Option offers a compelling guaranteed interest rate, while providing flexibility and portability. Unlike other fixed income options, advisors and plan sponsors don’t have to sacrifice choice or flexibility to get a guarantee with the Principal Guaranteed Option.
- Capital preservation: seeks to preserve capital and provide a compelling guaranteed credit rate over a full interest rate cycle
- Portability: customers can maintain interest in PGO even if the plan moves to a new recordkeeper
- Accessible: available for 401(k), 401(a)-DC, 403(b), and governmental 457(b) plans
- Guaranteed rates: crediting rates reset every 6 months
- Solid backing: the guarantees are supported by the multi-billion dollar general account of Principal Life Insurance Company
- Rate level flexibility: 14 rate levels available
Providing choice and flexibility for advisors
“Advisors and plan sponsors want choice and flexibility as they look to select a fixed income investment option that meets the diverse savings needs and objectives of retirement plan participants,” added Patterson. “We’ve delivered that with PGO and will continue to look for more ways to help people reach their financial goals and feel more confident about their future.”
Principal has also developed a new online resource hub for advisors to support their conversations with plan sponsors about fixed income investment options, as they evaluate which best meets their retirement plan objectives. Additional features include videos, fact sheets, articles and client-ready materials about fixed income, capital preservation and return-focused products. Advisors are encouraged to visit principal.com/fixedincome to learn more.
* For March 1, 2019-May 31, 2019. The composite crediting rate is prior to any plan fiduciary elected rate level service fee for plan administrative and recordkeeping services.
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals—offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
Asset allocation and diversification do not ensure a profit or protect against a loss.
Guarantees are based upon the claims-paying ability of the Principal Life Insurance Company.
Principal Guaranteed Option is not FDIC insured and is not an obligation or deposit for any bank nor guaranteed by a bank. The guarantees provided with regard to the Principal Guaranteed Option are supported by the general account of Principal Life.
Principal Guaranteed Option is the Custodial Guaranteed Option Group Annuity Contract available through Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, Iowa 50392.
Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths.