Updated 2026-03-30
Principal vs Nationwide 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Nationwide (#13, 7.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Nationwide |
|---|---|---|
| Overall Score | 8.3/10 | 7.3/10 |
| Rank | #6 | #13 |
| AUM | $700 billion | $250 billion |
| Participants | 6 million | 3.5 million |
| Plan Sponsors | 46,000+ | 30,000+ |
| Founded | 1879 | 1926 |
Ratings Comparison
| Category | Principal | Nationwide |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.4/5 |
| Investment Options | 3.8/5 | 3.5/5 |
| Customer Service | 4.2/5 | 4.0/5 |
| Mobile App | 3.9/5 | 3.4/5 |
Fee Comparison
| Fee Type | Principal | Nationwide |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | $800 - $3,500/year |
| Expense Ratios | 0.25% - 1.5% | 0.30% - 1.3% |
| Trading Fees | Varies | Plan dependent |
| Advisory Fees | 0.40% - 1.0% | 0.45% - 0.95% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Nationwide Strengths
- Strong in 403(b) and 457 plans
- Guaranteed lifetime income options
- Good public sector solutions
- Stable value fund options
Rollover, Loans & Withdrawals
| Feature | Principal | Nationwide |
|---|---|---|
| Rollover Platform | Principal.com | Nationwide.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via Nationwide.com, Phone (877-677-3678) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Guaranteed lifetime income, Rollover to IRA |
Which Should You Choose?
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Choose Nationwide if you want:
- Public sector employees
- Teachers and nonprofits
- Guaranteed income seekers
Our Verdict: Principal vs Nationwide
Principal Financial wins this comparison with a score of 8.3/10 vs 7.3/10. Principal excels with excellent for small business 401(k) plans, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Principal vs Nationwide: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Nationwide for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Nationwide is known for public sector. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Nationwide's 0.30% - 1.3%. Principal manages $700 billion in assets and serves 6 million participants, while Nationwide has $250 billion AUM and 3.5 million participants.
Key Differences: Principal vs Nationwide
When comparing Principal and Nationwide, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Nationwide stands out for strong in 403(b) and 457 plans. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Principal's customer service rating is 4.2/5 compared to Nationwide's 4.0/5. For mobile experience, Principal scores 3.9/5 while Nationwide scores 3.4/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Nationwide if you're looking for public sector employees. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Principal and Nationwide provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Nationwide is best for public sector employees. The right choice depends on your employer's plan and your priorities.
Principal charges expense ratios of 0.25% - 1.5% with admin fees of $1,500 - $5,000/year for small plans. Nationwide charges 0.30% - 1.3% expense ratios with admin fees of $800 - $3,500/year. Principal's fees rating is 3.5/5 compared to Nationwide's 3.4/5.
Yes, you can roll over between Principal and Nationwide. Principal uses Principal.com for rollovers, while Nationwide uses Nationwide.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Nationwide offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Principal scores 3.8/5 for investment options, while Nationwide scores 3.5/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Nationwide offers Mutual Funds, Target Date Funds, Fixed Annuities.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Nationwide is best for public sector employees, teachers and nonprofits, guaranteed income seekers. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Nationwide's $800 - $3,500/year.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-30