DES MOINES, Iowa--(BUSINESS WIRE)--

When it comes to boosting retirement savingsand ultimately retirement incomegood old fashioned face-to-face education is proving to make a significant difference.

According to a new analysis from the Principal Financial Group, employees who attend personalized, one-on-one sessions at the worksite take more positive actions including participating more and saving more.

Analysis shows that, over time, the higher deferral rate combined with the commitment to increase savings among those who attended one-on-one meetings could mean an additional $242,000 at retirementbased solely on employee deferrals. That could translate into an extra $905 more a month in retirement income1, which is 69 percent higher than participants who didnt have one-on-one education.

We know from face-to-face educational meetings that retirement savers benefit from hearing a person explain how the retirement plan works rather than having to shuffle through documents by themselves, said Barrie Christman, vice president, individual investor services at The Principal. Take it a step further with personalized one-on-one meetings on company time and significantly higher numbers of participants are taking actions that can help get them to the 11-15 percent contribution rangeincluding employer matchthat we believe is needed over the course of a career to have sufficient retirement income.

One-on-one adds up to greater savings

The analysis of participants covered by retirement plans2 through The Principal, who attended a one-on-one meeting in 2011, found that 92 percent agreed to take a positive action and 80 percent completed the action. The top actions were to increase savings rates now and commit to continue to increase them in the future:

Even a small increase in savings can make a big difference in retirement security over time, especially when there is a commitment to keep increasing contributions, said Christman. While plan designautomatic savings features, higher default rates and employer match plays a critical role in empowering participants to save effectively, face-to-face education is a key tool in the retirement readiness toolbox.

The Principal rolled out its unique program of one-on-one meetings at the worksite in 2006. The salaried professionals have conducted more than 340,000 individual meetings since then.

The personalized meetings identify gaps in retirement planning, show how employer-sponsored benefits fit with personal financial needs and help individuals develop a personalized action plan.

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Face-to-Face Education Drives Better Retirement Savings Behavior