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Help clients create the next super saver

09/25/2019

The third year of the Principal® Super Saver Survey is complete and we’re ready to share the results.1 New this year we included Gen Z super savers in the research. These young people are just starting to enter the workforce and save for retirement.2

Who are these super savers?

We’ve put the super saver label on those who are saving 90%–100% of the IRS maximum contribution ($16,650+) or deferring 15% or more of their salary to their retirement account. Amazingly enough, when surveyed, 42% of them said they plan to save more than $20,000 for retirement in 2019.

As you’ve probably guessed, super savers take this saving for retirement stuff seriously. A large majority of them started saving in their 20s when they became eligible to participate in their employer’s retirement plan. And they understand that they’re in it for the long haul with 71% saying they don’t make changes to investments during market volatility.

Work with financial advisors

Super savers are comfortable with their current and future financial situation as 96% have an emergency fund. And they trust themselves to make the right decisions for their retirement as 41% work with a financial advisor.

Looking over the three years of our research, we see more super savers choosing to do home DIY projects (thank you YouTube) and to purchase used goods rather than new. Contrary to what some people might assume, they span the income bracket with 47% of them making under six figures.

Check out the survey results.

What do super savers want?

We asked what, if anything, they’d like their employer to provide them to help save more for retirement. Here’s what they said they want from their employers:

  • Employee education and direct consultation opportunities (21% of super savers don’t work with an advisor now, but would like to in the future)
  • A 401(k) match or an increase to the current match percentage
  • Lower fees
  • An automatic increase once a year
  • College loan assistance

Discuss with clients ways to create more super savers, such as:

  • Immediate eligibility and vesting
  • Providing education to their participants
  • Starting an employer match or increasing it—it might not be as costly as they think
  • Automated plan design features (automatic: enrollment, increase, and sweep)
  • More savings options, such as Roth IRA, HSA, and annuities

Read more about the motivation and some key habits of super savers.

Questions? Contact your local Principal rep or our Advisor Support Team at 800-952-3343.

 

1 The survey was sent to Gen Z, Gen X, and Gen Y participants who work for companies that have Principal as the recordkeeper for their retirement accounts and have either saved 90% of the IRS max allowed under a retirement plan or deferred 15% or more of their salary to a retirement account. The survey was conducted between May 22 and June 5, 2019.
2 Individuals considered to be Gen Z are born from 1996 on. Gen X are born between 1965 and 1976. Individuals considered to be Gen Y are born between 1977 and 1995.

For financial professional/institutional use only.

Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392.

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.

© 2019 Principal Financial Services, Inc.

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