Principal® Expands Retirement Plan Access to Hispanic Workers by Taking Savings Mobile

Rhea-AI Summary

Principal Financial Group has enhanced its retirement app by adding a Spanish-language option to better serve Hispanic workers facing a retirement savings gap. This mobile app facilitates access to crucial retirement management resources, addressing cultural and language barriers. With mobile app usage among retirement plan participants rising from 21% in 2019 to 37% in 2021, the bilingual app aims to improve user engagement and retirement planning efficiency. The app allows users to check account balances, make contributions, and receive bilingual support.

Positive

• Introduction of Spanish-language option in retirement app to serve Hispanic workers.
• Increased mobile usage for retirement planning, with 37% of participants utilizing mobile devices in 2021.
• Access to employer-sponsored retirement plans for Hispanic workers can be improved with bilingual capabilities.
• Principal's bilingual approach aims to enhance user engagement and retirement outcomes.

Negative

• Hispanic workers have lower access to retirement plans (48%) compared to other groups (24%).

Retirement industry leader adds Spanish-language option to retirement app, enhancing suite of resources customized to address savings gap for Hispanic workers

DES MOINES, Iowa--(BUSINESS WIRE)-- Principal Financial Group^® announced today an expansion of its suite of retirement solutions for Hispanic workers by adding a Spanish-language option to its mobile retirement app. This enhancement is designed to help increase retirement savings and management access to the thousands of Hispanic workers Principal^® serves as many face a retirement savings gap made worse by the pandemic.¹

“Cultural and language barriers can often limit the engagement of Hispanic workers and hinder retirement outcomes, particularly during times of economic uncertainty,” said Joleen Workman, vice president of customer care, Retirement and Income Solutions at Principal. “By adding a full-service Spanish-language retirement mobile app to our solutions for Hispanic workers we are focused on helping even more people feel secure and confident in their retirement planning.”

Principal brings the Spanish-language mobile app to participants at a time when mobile use for retirement saving and planning has increased significantly. In 2019, over 21% of participants used the retirement app via a mobile device, with that rate jumping to 37% of participants on mobile devices instead of desktops this year. ²

Research also shows that access to employer-sponsored retirement plans for Hispanic workers is lower as compared to other groups: 48% of Hispanic workers with fulltime jobs don’t have access to plans as compared to 24% for other fulltime workers.³ The Principal^® app’s bilingual capability can help assure employers they can reach more Hispanic workers. The app provides the appropriate language in Spanish or English based on a user’s phone language setting, allowing Spanish-speaking users to:

• Check retirement account balances
• Make contribution decisions
• Monitor their retirement progress
• Get immediate assistance from bilingual customer support

The Spanish-language app is available to all Principal customers and adds to the company’s Principal®Hola Futuro, a free educational and financial wellness resource for the Hispanic community. It will also be an immediate resource for Spanish-speaking workers who onboard with Principal® Real Start en Español, a bilingual digital enrollment platform.

¹ About four-in-ten Hispanic adults (43%) say they have used money from a savings or retirement account to pay their bills since the beginning of the coronavirus outbreak compared with 29% of White adults and 33% of Asian adults (The Pew Research Center, Sept. 24, 2020).
² Principal reporting as of March 31, 2021.
³ The Pew Charitable Trusts, September 2017.

Beyond language

The advancement of the mobile app is part of the Principal approach of building customer experiences that go beyond just language. The company has a bicultural approach which doesn’t just translate for Spanish-speaking audiences, but takes cultural influences into account to accurately express meaning and purpose.

Principal^® Hola Futuro (“Hello Future”) is an accessible, culturally-appropriate resource providing employees with financial wellness videos, worksheets, FAQs, and access to a bicultural support team. In addition, Principal^® Real Start en Español is a personalized retirement plan onboarding experience available in Spanish and English. Since 2019, Real Start has led to an average savings deferral rate of 8% among Hispanic participants.

“To make financial security more accessible, we are creating opportunities to reach more people and businesses,” Workman said. “This mobile retirement savings platform is an important step in that work.”

To learn more, download the Principal® app today and visit Principal® Hola Futuro.

About Principal Financial Group®

Principal Financial Group^® (Nasdaq: PFG) is a global financial company with 18,000 employees^[1] passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 45.5 million customers^[2] plan, insure, invest, and retire, while working to support the communities where we do business, improve our planet, and build a diverse, inclusive workforce. Principal^® is proud to be recognized as one of the World’s Most Ethical Companies^[3], a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management^[4].” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.

^[1] As of June 30, 2021.
^[2] As of June 30, 2021.
^[3] Ethisphere Institute, 2021.
^[4] Pensions & Investments, 2020.

Principal^® app is available for iPhone^® and Android^TM. Apple and iPhone are registered trademarks of Apple Inc.
Android is a trademark of Google LLC.

The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and is not intended to be a financial plan or investment advice from any company of the Principal Financial Group® or plan sponsor. This calculator only provides education which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not the plan sponsor and not by any member of Principal®. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. ​

Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-247-1737, member SIPC and/or independent broker/-dealers. Referenced companies are members of the Principal Financial Group^®, Des Moines, Iowa 50392.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005255/en/

Alex Ortolani, ortolani.alex@principal.com, 919-755-8671

 

Source: Principal Financial Group

FAQ

What is the new feature added by Principal Financial Group for Hispanic workers?

Principal Financial Group has added a Spanish-language option to its retirement mobile app to serve Hispanic workers better.

How has mobile app usage for retirement savings changed recently?

Mobile app usage for retirement savings increased from 21% in 2019 to 37% in 2021.

What percentage of Hispanic workers have access to employer-sponsored retirement plans?

Only 48% of Hispanic workers have access to employer-sponsored retirement plans, compared to 24% for other fulltime workers.

What functions does the Spanish-language mobile app offer?

The app allows users to check account balances, make contribution decisions, monitor retirement progress, and receive bilingual customer support.

How does the Spanish-language app aim to improve retirement outcomes for Hispanic workers?

By addressing cultural and language barriers, the app enhances engagement and provides necessary resources for better retirement planning.