Principal Financial Group 2015 Annual Report Download - page 11

92015 Annual Report
With so many trends influencing human behavior—
digitization, increased distractions, multi-tasking on
multiple devices—we knew there must be a better
way to simplify retirement planning, make it less
daunting and empower people to take action. The
answer? My Virtual Coach.
The best kind of innovation isn’t just written up in
business magazines or recognized at industry events.
It’s felt in the lives of real people.
For proof, look no further than My Virtual Coach, a
virtual-assisted, interactive enrollment and education
tool that is making it easier than ever for 401(k) plan
participants to save for retirement.
“We know that when it comes to saving for retirement,
inertia and complexity get in the way,” says Jerry
Patterson, senior vice president of retirement and
income solutions. “People want to make good choices,
but they don’t always know what actions to take.”
And, let’s face it, inertia and complexity aren’t the only
things that get in the way. Our increasingly digital lives
make it hard for people to sit through meetings—the
traditional method for enrolling in a 401(k) plan.
My Virtual Coach works to solve all that. Turning edu-
cation upside down with a little humor delivered in a
web-based interactive and personalized conversation
is changing behavior by making complex topics and
decisions less scary and easier to understand. Covering
topics like “Why should I enroll?” “How much should
I consider saving?” and “What investment options are
right for me?” participants are able to take action as
they go, allowing them to start saving in as little as
five minutes. And they can do it from any device,
whenever and wherever they choose.
The tool leverages data from multiple sources and com-
bines it with what the individual tells us along the way
to deliver a personalized retirement planning experience
unique to each participant. The clarity and confidence
My Virtual Coach provides, in turn, helps individuals
make better decisions about retirement savings.
The result? More people saving more for retirement.
Nearly half of those who use the tool for enrollment
defer 10 percent or more. The average pre-tax deferral
for 401(k) participants using My Virtual Coach enroll-
ment is 7.6 percent. That sits well above the 4.91 percent
average deferral for first-year enrollment via traditional
enrollment methods.* And even above the 6.78 percent
average deferral via new online quick enroll methods.
In addition, by using My Virtual Coach, one third of
participants choose a voluntary annual increase in
their deferral.
“My Virtual Coach provides easy steps so people can
understand, make decisions and take action.” says
Joleen Workman, assistant vice president of retirement
and income solutions. “It’s all about making it easy
and giving people confidence that there is a clear path
to progress.”
* Principal SDS average enrollment data
(based on 2015 Plan Entry Dates).