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Guaranteed income streams can increase retirement confidence

WASHINGTON, April 24, 2018 /PRNewswire/ -- Three-fourths of American retirees are confident they and their spouse will have enough money to live comfortably throughout their retirement years, according to the 2018 Retirement Confidence Survey. Confidence jumps to 89 percent among retirees with guaranteed income from a defined benefit plan, compared to 59 percent without one.

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Sara Wiener, assistant vice president of retirement at Principal.

The survey, now in its 28th year, is released by the nonpartisan Employee Benefit Research Institute and survey research firm Greenwald & Associates. Principal Financial Group® co-sponsors the survey.

Less American workers counting on Social Security in retirement 

While Social Security is expected to be a major source of income for 67 percent of retirees surveyed, those still working aren't counting on it as much: only 36 percent said they expect Social Security will be a major source of income in retirement.

"The picture continues to change for people already in retirement compared to those who are still working. Younger generations face concerns about Social Security and fewer have access to a defined benefit plan than previous generations, leaving a big gap to fill as Americans approach retirement," said Sara Wiener, assistant vice president of retirement at Principal®. "We want to help with that transition, which is why we work with so many individuals, business owners and plan sponsors to help them make choices to have enough and save enough for retirement."

Guaranteed income strategies can close the gap, build confidence

Four in five workers expressed interest in guaranteed lifetime income, with 28 percent "very interested" in putting all or some of their retirement plan savings into a guaranteed lifetime income product.

"Having the ability to guarantee a portion of your income for the rest of your life can be a powerful retirement strategy and a confidence-booster to know they won't outlive their savings," said Wiener.

Products like annuities or in-plan investment options take a piece of a person's retirement pie and turn it into a guaranteed income stream. Principal launched the Principal Pension BuilderSM as an in-plan option in 2015 that lets participants build a steady stream of guaranteed income for life by directing a portion of their retirement plan contributions into a deferred income annuity.

"At the end of the day, we know confidence is the key driver to financial decision-making, and we want to empower people to feel educated and in-control of their future," added Wiener. "For younger workers, time is on your side. There are so many tools and resources to help you plan. Don't be afraid to take the first step."

About Principal®
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

The ability of Principal Life Insurance Company to pay the guarantee is based on the claims-paying ability of the general account and is subject to the terms of the contract.

Principal Pension BuilderSM is a deferred income annuity rider available through certain group annuity contracts with Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines Iowa 50392.  Principal Pension Builder may not be available in all states.

Principal Pension Builder provides for the purchase of deferred income annuities that provide guaranteed income in retirement.  Guaranteed income may change due to elections by the plan fiduciary or participant, such as changing the income start date or annuity form. Funds transferred and contributions used to purchase guaranteed income through Principal Pension Builder will no longer be subject to market gains or losses.  In exchange, the participant is purchasing a guaranteed future income stream.   In no instance shall the Income Start Date be earlier than your Normal Retirement Date unless you separate from service prior to the plan's Normal Retirement Date.

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392.  Certain investment options may not be available in all states or U.S. commonwealths. Principal Pension Builder is not available to plan sponsor located in New York.

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SOURCE Principal Financial Group

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