The results are in. My Virtual Coach, a web-based, interactive educational resource from Principal Financial Group®, is empowering people to plan—and save for—the life they want in retirement.

Launched about a year ago, My Virtual Coach covers a range of topics. Results from the first conversation, which tackled getting employees enrolled in their organizations’ retirement plans, include1:

  • Nearly one-third of people who enroll through My Virtual Coach contribute 10 percent of their salary or more (only 7 percent of people contribute 10 percent or more using traditional enrollment methods).
  • More than 30 percent elect automatic, annual contribution increases (compared to 5 percent when using traditional enrollment).
  • Their deferrals are nearly 3 percentage points more, on average, than those enrolling traditionally.

“We’re blown away by these stats,” said Jerry Patterson, senior vice president of retirement and income solutions at Principal®. “We know people want to make the best choices, and it’s clear that My Virtual Coach is empowering them to take action by delivering a personalized, experience that simplifies the complex.”

The collection of My Virtual Coach conversations includes everything from enrollment to designating a beneficiary to investing choices. They’re tailored to the individual based on relevant information, so most participants can get through each one in just five to seven minutes.

“Our research shows that regardless of generation, people are very open to digital tools as resources for explaining the ins and outs of retirement,” Patterson said. “My Virtual Coach is available anytime, anywhere and on any device, aligning with how people want to receive information today.”

Plan sponsor pluses
My Virtual Coach complements the evolving workplace, giving plan sponsors the flexibility to reach employees working remotely or in other locations with the same experience.

And given the increased scrutiny around what may be considered advice versus education under the new Department of Labor fiduciary regulations, My Virtual Coach offers a robust platform that helps plan sponsors track the education their participants receive. “While participants can choose different paths, they stay within the boundaries of the designed educational experience,” Patterson said.

What’s new?
Just in time for benefit-election season, a newly launched conversation provides participants with an annual checkup to help track their progress and give their retirement strategy a once-over.

Whether getting a raise, getting married, having a child or getting closer to retirement, it’s important to revisit savings decisions on a regular basis to stay on track. The annual-checkup conversation ends with email-ready action items that capture reminders of what the user still needs to do.

Another new conversation explains the value of guaranteed income in retirement. It unpacks Principal Pension Builder, an in-plan product that allows participants to direct a portion of their retirement plan contributions into a deferred income annuity.2

My Virtual Coach is part of Principal® PlanWorks, an approach to workplace retirement readiness designed to help make retirement plans work better for both participants and plan sponsors. Principal PlanWorks is made up of three key pieces—plan design, participant experience and strategic measures—to help drive successful retirement outcomes.

For more research, analysis and insights from Principal, visit the Principal Knowledge Center and connect with us on Twitter.

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.com.

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.

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1 My Virtual Coach enrollment results from 23,998 eligible 401(k) and 403(b) plans; traditional enrollment results based on 24,127 eligible salary deferral service plans (Jan. 1, 2016-June 30, 2016).

2 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.