9 1/2 QUESTIONS
An Interview with
Jerry Patterson
Senior Vice President—Retirement & Investment
Services of Principal Financial Group
By Gabriel Potter, AIF®
I
n this issue, Jerry Patterson of
Principal Financial Group talks to
Confero about employee retirement
outcomes.
2. an engaging participant
experience –with tech savvy,
engaging, easy-to-use tools
and services
Retirement readiness is a subject
that is much talked about around the
industry. Tell me about the resources
that Principal is committing to this
concept?
3. strategic measurement – at both
plan sponsor and participant
levels
Retirement readiness is a shift in
philosophy across the industry, and we
are committed signficantly improving
outcomes for participants. We took
our 70+ years of retirement experience
plus industry expertise of behavioral
finance leaders and digital experts, and
created our holistic approach: Principal®
PlanWorks.
This approach incorporates three key
elements:
1. retirement ready plan design,
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We’ve invested considerable resources
to drive superior participant retirement
outcomes. For example, we tapped into
leading digital experts to help create a
positive, distinctive digital experience
that drives action and outcomes. Our
approach to plan design is rooted in
behavioral fianance, and turns behaviorial
challenges into behavorial solutions.
Reports and tools help plan sponsors
and advisors understand the power of
retirement readiness.
(http://inside.theprincipal.net/ris/retireready/index.shtm)
How does Principal define retirement
readiness for defined contribution
participants?
It is a participant’s ability (and continued
progression) to meet and maintain
income goals throughout retirement.
There seems to be a movement to
push the conversation away from
investments and fees and towards
outcomes. Has the focus shifted at
Principal and if so, can you tell me
about those initiatives?
Yes, we have definitely shifted our
focus from participant accumulation
(participation/deferral) to improved
participant outcomes. The push began
in 2012 when we commissioned a study
with Brightwork Partners LLC regarding
financial professionals and their role in
working with plan sponsors. As a result,
we learned that retirement readiness
showed as an important point to plan