Products December 20, 2011

Principal Opens Resource Center for Compliance Guidance

The Principal Financial Group has created an ERISA 404(a) Participant Disclosure Regulation Resource Center.
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The center offers information and resources to help financial professionals and their clients prepare for the upcoming Department of Labor regulations.

The Participant Disclosure Regulation Resource Center provides:

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•  An overview of the ERISA 404(a) participant disclosure regulation;

•  Step-by-step instructions for when and how to take action;

•  Details on disclosures plan sponsors are required to provide and what The Principal is doing to help;

•  A tool to help sponsors create a disclosure reference guide describing their plan’s compliance dates; and

•  Materials to communicate with and educate employees.

“Even though plan sponsors won’t need to start providing this information for another six months, we know it is important to them to understand what they’ll need to do now,” said Greg Burrows, senior vice president, retirement and investor services at The Principal. “The Resource Center gives sponsors what they need to get started. Financial professionals can use this time to get ahead of the competition and start having conversations with clients and prospects.” 

Data & Research December 20, 2011

Generations X and Y Saving More for Retirement than Boomers

Generations X and Y have embraced the concept of self-directed retirement savings more so than their parents and grandparents.  
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A survey conducted by TD Ameritrade found that 85% of working Americans have an Individual Retirement Account (IRA) and/or a 401(k)/403(b) plan; more than a third (36%) have both. But it’s the younger generation of workers who are saving more diligently: 25% of Gen Y and 23% of Gen X are funding both their 401(k)/403(b) plans and their IRAS, compared to 16% of Boomers and 9% of Matures. Yet, 74% of Boomers are not completely confident that they will reach their savings goal by the time they are ready to retire.

Many Boomers are also missing out on another chance to bolster their retirement savings. Among the 50+ crowd, those eligible for the “catch-up contribution,” a feature allowing them to contribute an additional $5,500 to an employer-sponsored retirement plan, more than two-thirds (68%) are not taking advantage of the opportunity. Half of them are skipping out because they can’t afford it, but another 21% said they had never heard of it.

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The survey results are based on a survey conducted by Maritz, Inc. on behalf of TD Ameritrade Holding Corporation, and included 1,509 respondents between 22 and 81 years of age who participated in a telephone survey from July 20-August 17, 2011.

For more information on TD Ameritrade’s Annual Investor Index survey series, including key findings, visit www.amtd.com. 

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