Principal Financial Group 2011 Annual Report Download - page 13

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6
privatizing retirement
As the middle class grows in emerging markets
around the world, they’re thinking ahead—about
their financial goals and how they can achieve
them. Their governments are thinking ahead,
too—about the systems and incentives that can
help the middle class fund their retirements.
These governments know they can’t afford to
foot the bill for their citizens’ retirement years.
That’s why more and more nations are turning to
defined contribution-type plans (similar to U.S.
401(k) plans) to help individuals save for their
own retirement. Governments are also creating
tax incentives to encourage individual savings.
The global growth of privatized retirement
pension plans represents a tremendous
opportunity for The Principal over the coming
decades. Not only do we have the right
products, we’ve also developed a network of
marquee distribution partners in our targeted
markets. This allows us to think globally but
act locally—bringing our extensive retirement
expertise to hundreds of millions of middle-
class consumers around the world.
T H E N E E D for retirement programs is on the rise in
emerging markets. We’re ready because we’re already
in these key markets—with the right products, expertise
and distribution to meet growing demand.
PEOPlE cuRREnTlY SAvinG FOR
RETiREmEnT in EmERGinG mARKETS1
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bRAZil
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PRINCIPAL FINANCIAL GROUP | 2011 year in review | 11
1 United Nations population division, population by country as of 2009;
“It’s time to prepare” HSBC 2009 The Future of Retirement global
research report.