Simply Retirement by Principal® Offers New Digital 401(k) Solution

For today’s employees focused on making ends meet, saving for retirement can be a challenge. Many don’t have a plan or haven’t saved a fraction of what they’ll likely need to retire comfortably. Principal® has introduced a new solution, Simply Retirement by Principal®, a digital offering designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.

A simple online solution

With Simply Retirement by Principal®, small business clients or financial professionals 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 or email away.

Flat recordkeeping fees

Simply Retirement by Principal® has flat recordkeeping fees that don’t change as clients’ plan assets change, helping business owners with predictability. Small businesses pay a $500 one-time setup fee and a $135 monthly recordkeeping fee. Each participating employee pays $6 per month, unless the business owner chooses to pay this fee.1

Competitive investment options

A variety of investment options are included with Simply Retirement by Principal®. 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.

Small business market potential

More than 5 million businesses across the U.S. don’t offer a workplace retirement plan today.2 However, Principal research shows the workplace is among the best places to help make a positive impact on long-term savings habits.

So, is now the right time to start a retirement plan? For some clients, the answer may be yes. Despite recent market volatility, 85% of small businesses with one to 100 employees say they’re stable or growing, according to new research from Principal.3

"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 Jerry Patterson, senior vice president of retirement and income solutions at Principal. "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."

Learn more

Simply Retirement by Principal® combines 75-plus years of expertise in retirement solutions and investments from Principal4 with the simplicity and cost-effectiveness of the Ubiquity Retirement + Savings® recordkeeping platform and services.

For more information and to create a proposal online, visit SimplyRetirement.com.

1 Fees paid by the business owner are billed quarterly. 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 0.03% - 0.94%, as of July 31, 2021). Your TPA fees and the financial professional fees are also additional and may be billed to the business owner. (Financial professional fees may be deducted from participant accounts.)

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

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

4 As of Dec. 31, 2019.

Simply Retirement by Principal®401(k) plan recordkeeping, and administrative services are provided through 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 are 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.

The subject matter in this communication is educational only and provided with the understanding that neither Principal®or Ubiquity Retirement + Savings are rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other financial professionals on all matters pertaining to legal, tax, investment or accounting obligations and requirements.


Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, Iowa 50392.


©2020 Principal Financial Services, Inc.

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