Simply Retirement by Principal® offers new 401(k) solution for start-up retirement plans

Despite recent market volatility, 85% of small businesses with one to 100 employees say they’re stable or growing1, according to new research from Principal Financial Group®. Today, Principal® announced a new digital offering to help small business clients and their financial professionals build retirement benefits programs that can attract and retain top talent and support continued growth. With more than 5 million businesses without retirement plans2, Simply Retirement by Principal®, is designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.

“Millions of small businesses do not offer a savings plan to their employees today, though our research shows the workplace is among the best places to make a positive impact on long-term savings habits,” said Jerry Patterson, senior vice president of retirement and income solutions at Principal. “The world has changed, but the importance of having a short- and long-term savings plan has not.”

Simply Retirement by Principal® includes:

  • Seamless setup.
    Users can create 401(k) proposals quickly online through a straightforward process that reduces paperwork. No in-person meetings are required. And if help is needed, it’s just a phone call away.
  • Experience and technology.
    Simply Retirement by Principal® combines 75-plus years3 of expertise in retirement solutions and investments from Principal with the simplicity and cost-effectiveness of the Ubiquity Retirement + Savings® recordkeeping platform and services.
  • Predictable pricing.
    Small businesses pay a $500 one-time setup fee and a $150 monthly recordkeeping fee. Each participating employee pays $6 per month, unless the business owner chooses to pay this fee. Recordkeeping fees don’t change as clients’ plan assets change, helping business owners with predictability.4
  • A variety of strong investment options.
    Principal investment options offer strong performance with a competitive return, helping provide growth potential of employee contributions and any matching contributions the business owner provides.

“The COVID-19 health crisis has changed the world in which we work, and we know that many small businesses have a lot to contend with. Their focus is on what’s most important right now, and we understand that,” said Patterson. “When the situation allows, offering a retirement plan can help business owners take care of their employees in a new way, build positive morale and culture, and help retain and compete for qualified employees in the future.”

News Release Contact

US Retirement

Hillary Carlson, 515-878-1460
Lonnetta Ragland, 515-878-1504

1 Principal Well-Being Index Survey of Business Owners with 1-100 employees, June 2020.

2 “Millions of American Workers Still Lack Access to 401(k),” American Retirement Association, July 2019.

3 As of Dec. 31, 2019.

4 Fees paid by participants are deducted monthly from participant accounts. Participant fees are charged if there is a $100 account balance, regardless of whether the participant is active or inactive. Custodial and investment fees are charged against participating employees’ accounts (those vary by investment and range from 0.10% - 0.80%, as of May 1, 2020). Financial professional compensation is also additional and may be billed to the business owner or deducted from participant accounts.

About Principal®

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.

About Ubiquity Retirement + Savings®

Ubiquity Retirement + Savings® is a leading financial technology company that sits at the crossroads of HCM, SaaS and robo-recordkeeping.  Our mission is simple: Provide the 50+ million Americans working for small businesses with an easy, low-cost option to save for retirement at work. The firm was a pioneer in transparent, flat-fee retirement plans, and for over 20 years, has helped more than 9,000+ businesses contribute over $2.25 billion toward retirement savings. To learn more, visit myubiquity.com

Simply Retirement by Principal® 401(k) plan recordkeeping and administrative services are provided by Decimal, Inc. dba Ubiquity Retirement + Savings® (“Ubiquity”). Ubiquity is not affiliated with any plan and investment administrative services provided through Principal Life Insurance Co., or affiliated with any company of the Principal Financial Group®. Principal makes available the investment options for customers to select through Simply Retirement by Principal®. All other services provided by service providers not affiliated with any company of the Principal Financial Group. Refer to related documents and agreements for more details on plan services available.

Simply Retirement by Principal® requires a client service agreement between Ubiquity and the plan sponsor (Customer). In addition to and as part of the services, each Customer will sign separate agreements with the following parties: (i) custodian (ii) 3(38) investment manager, and (iii) a Principal Life Insurance Company for each Principal Comprehensive Retirement Program (PCRP) offered through the Modular Group Annuity Contract for separate accounts, and a declaration of trust for Principal collective investment funds. Simply Retirement by Principal® services and costs are subject to change.

Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-247-1737, member SIPC and/or independent broker/-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.