According to a press release, the Replacement Ratio Tool for Defined Contribution Plans, designed expressly for financial professionals to use with prospective clients, shows:
- overall replacement ratio percentage of all plan participants
- overall replacement ratio percentage of participants on track and not on track for retirement
- a breakdown of those participants within each replacement ratio range
- percentage of participants on track and not on track by age and salary.
The Principal said it will then team with financial professionals to introduce ideas to help get participants on track and make the plan more successful.
“Plan sponsors too often judge the success of their retirement plan by the percent of employees who participate or their average salary deferral rates,” said Brian Walker, vice president, Business Development, The Principal, in the release. “These measures alone don’t tell the full story. A successful plan helps employees understand how much they need to save now to help live comfortably in retirement.”
More information is available at www.principal.com.