Retirement education. Understand how we connect with your participants and how you can help.

Transcription

1 Retirement education Understand how we connect with your participants and how you can help.

2 As a retirement plan sponsor, you have a big job and a long list. Education for your plan participants may rise to the top or fall to the bottom. Either way, we have good news. Retirement education is among our top priorities, and our goals are simple. We work to: 2 Increase engagement Give participants access to resources Improve retirement readiness Your participants will get a personalized experience as long as we can reach them. The key to engagement is connection. Just include your employees work addresses when you provide employee data on the employer website. If you need to know how, we can show you. Make sure to build records for your new hires right away so we can send them messages as soon as they re eligible to enroll. We may also be able to help with annual notice delivery. ptpa@abc.com ptpb@abc.com ptpc@abc.com Upload You should also encourage participants to set up a username and password for online account access. When they do, they provide contact information and set their security and communication preferences. This is how we can reach them if we don t have work addresses. It also helps participants get account protection. Want to know more? Type customer protection guarantee in the Help feature on the employer website. 2

3 Everyone gets a personalized experience. Retirement is personal, and so is the journey to get there. That s why we need to meet participants where they are, each step of the way. The experience starts before enrollment and goes through retirement. It allows ongoing, anytime interaction and action. Online chat1 Phone Education materials Text notifications Webinars (Live and replays) Mail On-site meetings2 Principal.com Welcome site1 My Virtual Coach Retirement Wellness Score Retirement Wellness Planner Online transactions Ways we reach out Ways participants reach us Educational content (See principal.com/education for materials you can download.) Online experience and resources 1 Coming in If available for your plan. 3

4 The key to engagement is connection. 4

5 But what, exactly, do they get? When we have their contact information, participants get messages based on: Something they do. We follow up after a participant enrolls, submits a transaction request, attends a webinar or plays around in the Retirement Wellness Planner. Something we notice they should do. They get enrollment messages when they re eligible and periodic reminders if they don t enroll. And they may get a message when it s time for a retirement checkup. Demographics. We send monthly webinar invitations to participants we think may be interested in the topic, based on demographics. As part of our retirement transition program, participants get a welcome at age 55, followed by a quarterly e-newsletter and annual planning message. All participants get a quarterly e-magazine. When they log in to principal.com, they get really personalized information and resources. They find My Virtual Coach conversations and their Retirement Wellness Score and Planner which now lets them link external accounts for a more complete view of their finances. Plus, a way to keep things interesting a motivational challenge. Most participants need encouragement to save. That s why we meet them in the moment with personalized action items. That s also the point of our annual education challenge. Participants complete tasks to win prizes. At the same time, they engage and take action. The annual challenge encourages participants to take personalized steps toward a more secure retirement like setting up their online account, checking their Retirement Wellness Score and completing a My Virtual Coach conversation. 5

6 Finally, results. See the power of personalized education. When engagement increases, contributions do, too. 50% Higher average deferral 6 Point Higher average Retirement Wellness Score 12.16% Average deferral 71 Average Retirement Wellness Score among those who logged into principal.com1 among those who attended four or more webinars2 My Virtual Coach users have a 20 percent higher average deferral and 12 point higher average Retirement Wellness Score. 3 My Virtual Coach Enrollment Conversation average deferral 4 My Virtual Coach Checkup Conversation average deferral % Other enrollment method 8.12% MVC enrollment 6.99% Pre-checkup 8.28% Post-checkup Annual education challenge participants earn impressive results.5 10% average deferral among 2017 challenge participants 6x more participants 10% higher average Retirement Wellness Score 20% higher average Retirement Wellness Score among those who completed all action items 6

7 Want more on participant engagement and education? You ve got it. Just log in to principal.com. Check your plan s Participant Details and Retirement Readiness Quick View to see how many participants are on track. Find out if participants are using the website and resources like My Virtual Coach. Upload participant addresses. Download or order enrollment and education materials. Explore your account summary page. But don t stop there. From the top navigation, select Participants, then Enroll & Educate. Or visit principal.com/education. Participant details Retirement readiness Participant engagement We re here if you need us. Please let us know if you have any questions. 7

8 Tip: Make retirement elections an annual to do My Virtual Coach Checkup Consider the My Virtual Coach Checkup. It helps participants give their retirement strategy a once-over and take action. Your annual benefit election window is a great time for it. They re already focused on making the most of their benefits. Just send them to principal.com/myvirtualcoach-checkup. Want to confirm they ve done it? Find results on the employer website. If you d like to download promotional materials, visit principal.com/education. 1 Principal, 1/1/ /31/2016. Based on a comparison of 2016 deferral data and Retirement Wellness Scores of those who logged into principal.com vs. those who didn t. 2 Principal, 1/1/ /31/2016. Based on participants we were able to identify in our system (9,367 unique participants). Results are based on all retirement planning webinars, regardless of topic. 3 Principal, 1/1/ /31/2016. Based on participants who used the Enrollment, Checkup, Welcome to Principal and Retirement Income My Virtual Coach conversations. 4 Principal. Participant data as of 6/30/ Principal. Participant data as of 8/30/2017, comparing challenge participation and Retirement Wellness Scores among challenge participants in 2017 vs The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and are not intended to be a financial plan or investment advice from any company of the Principal Financial Group (Principal ). They only provide general guidelines which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not Principal. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines, IA PQ Principal Financial Services, Inc. 10/2017