According to a press release by Principal Financial Group, a new program designed to increase 401k savings rates among Hispanic workers is showing positive results.
Culturally relevant education at work and online is helping Hispanic employees learn more and save more for retirement, according to new data from Principal Financial Group.
The following is a case study from Principal regarding the success of its multicultural approach to 401k savings:
Principal created the Hispanic Market Program to provide specialized retirement education for employers with large Hispanic workforces. Since launching the program in 2013
- 401(k) plan participation among Hispanic employees in plans with administrative services by Principal is up to 66 percent (a 10 percent increase)
- Nearly half (45 percent) either enrolled in their employer’s retirement plan or increased their deferral on the spot after hearing about its benefits
- Those who enrolled did so at an average of 5 percent of salary, instead of the more typical 3 percent
We’re encouraged by these results and are working hard to expand the program to more plan sponsors, said Carlos Rojas, director of consumer and cultural engagement at Principal. According to our data from plans under the program, just slightly more than half of eligible Hispanic participants are enrolled in their workplace retirement plan.
Principal outlines its blueprint for success
5 Key Elements of Engagement
- Think bicultural – connect with the audience by understanding their culture
- Transcreate – develop culturally relevant content, not just a direct translation
- Keep it simple – make complex financial concepts easier to understand
- Bust myths – address cultural misconceptions that can undermine the importance of savings
- Customize – create a custom education strategy to increase participation and savings
