In an effort to boost financial fitness and retirement savings, the Principal Financial Group ® raises the savings bar with a 10% Challenge to retirement plan participants and a new way to track progress through a Retirement Wellness Report. The challenge and the report, which offers a personalized look at current retirement savings and estimated monthly retirement income, can help participants get on track for a healthier retirement.
“Nationwide as few as one in five employees are on track for retirement, making financial stress a constant pressure in their lives. That’s why we’re challenging individuals to step up and exercise their financial fitness in the same way they do their physical wellness to make a significant impact on the long-term health of their retirement savings,” said Jerry Patterson, senior vice president Retirement and Investor Services for The Principal ®. “Based on our extensive research on savings behavior, we are fundamentally changing our approach with retirement plan participants. New tools like the Retirement Wellness Report and the 10 percent challenge harness the power of human nature to make a significant impact on the health of retirement savings.”
Drop and give 10
The “ Take the 10% Challenge ” is an educational campaign that encourages participants to push themselves in the race toward retirement security by deferring at least 10 percent of their salary. Those who accept the challenge are eligible to win a Fitbit Force TM to help better monitor their physical fitness progress 1.“Our analysis has found that, on average, participants need to save at least 10 percent of salary plus employer match over the course of a working career in order to save enough for a secure retirement,” said Patterson. “That’s nearly twice as much as what people are saving now. If goals and rewards motivate people to get physically healthy, why not use the same approach to help them build financial health?”