RADNOR, Pa.--(BUSINESS WIRE)--In conjunction with National Retirement Planning Week (April 9-13), Lincoln Financial Group shares three steps to help Americans plan for their retirement and help meet their retirement income goals.
“Retirement is a milestone that provides Americans with great opportunities, but also significant challenges as today’s savers face living longer,” says Will Fuller, president of Annuity Solutions, Lincoln Financial Network and Lincoln Financial Distributors at Lincoln Financial Group. “Thousands of Americans are entering retirement each day, and having enough money to last their lifetime is one of their top retirement goals.”
Starting a conversation with a financial professional can be a simple first step in the planning process, and helps savers identify the benefits of the many solutions available in the marketplace. Lincoln offers three tips to help Americans prepare for retirement throughout their lives and maintain the lifestyle they want in retirement:
1. Maximize workplace benefits
Many employers offer benefits that can help employees prepare for tomorrow, whether it’s saving for retirement through an employer-sponsored plan like a 401(k) or protecting their income with disability, critical illness and accident insurance.
Individuals can start saving for retirement by contributing to their employer-sponsored retirement plan and increasing their contribution every year. A full two-thirds of retirement plan participants understand that they should be saving at least 10 percent of their salary to stay on track, and 45 percent believe they need to save 15 percent or more – which aligns with general industry recommendations. However, only four in 10 savers are saving as much as they think is necessary.1 If their employer offers a match, they should save up to that match, or else they’re leaving free money on the table.
It’s just as important to protect against unforeseen events that could force individuals to tap into their retirement savings. Employees are concerned about protecting their income – 60 percent of employees are worried about the loss of household income due to an unexpected illness or injury, and 70 percent are worried about healthcare expenses.2 Workplace benefits like disability, critical illness and accident insurance provide supplemental coverage that can help guard against these events.
2. Prepare for the unexpected
A well-rounded retirement plan needs to include a strategy to address potential long-term care needs. The Department of Health and Human Services estimates more than one in two people turning 65 will need some form of long-term care in their lifetime.
Long-term care planning should begin around age 50 and include meaningful discussions with both family members and a financial professional together to understand the realities and risks of long-term care, lay out care preferences, and assess care options – including family caregiving and professional services. In the case of professional caregiving services, which can potentially exceed $100,000 annually3, it’s important to discuss how such services would be paid for if needed. Today, there are many different types of long-term care funding solutions available in the market that can help mitigate the costs of care events, allowing consumers to select a solution that fits their specific care and financial needs.
3. Ensure income is there when needed
An equally important part of building a successful plan is to include a strong income strategy that provides a dependable stream of income throughout retirement. This is about maintaining the lifestyle savers are used to after the paychecks have stopped. Research shows that seven in 10 Americans who don’t own a guaranteed lifetime income product, like an annuity, say it’s because they don’t know enough about it. And among today’s 65-year-old married couples, there is a 47% chance that one spouse will live to age 954 – making an income stream that lasts a lifetime all the more important.
“Knowing you have a plan that includes protection from market losses and opportunity for growth can help you feel more confident about facing some of the challenges that may come your way,” added Fuller. “There are many options that can help protect savings, provide growth, and give savers a steady check in retirement that can’t be outlived. Working with a financial professional to learn about the many solutions available is a good place to start.”
Another often overlooked source of retirement income is cash-value life insurance. With these types of policies, consumers can potentially accumulate savings on a tax-deferred basis which can then be distributed tax-efficiently through policy loans and withdrawals as a source of supplemental retirement income.
Throughout the week, Lincoln will highlight various tips and resources to help engage savers on the topic of retirement planning. Individuals can also utilize the many online calculators and planning tools offered on Lincoln’s website. In partnership with the Insured Retirement Institute (IRI), Lincoln will also host two webinars for advisors to attend for Continuing Education credits. These topics include “Success in Income Planning: Client-Focused Strategies that Stand the Test of Time” and “Starting Long-Term Care Conversations.” Advisors who wish to learn more and register for these webinars may visit these links: Income Planning and Long-Term Care. The webinars will also be available after National Retirement Planning Week through the IRI website.
Each year, National Retirement Planning Week encourages and promotes positive savings behaviors among Americans, through tools and resources to help them plan for their financial needs in retirement. The National Retirement Planning Coalition – a group of education, consumer advocacy and financial service organizations – spearheads this effort to help Americans plan for retirement. Lincoln is a member company of the Insured Retirement Institute (IRI) – the organization that helps fuel the coalition and annual event.
For more information about National Retirement Planning Week, visit: https://www.retireonyourterms.org/.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $253 billion in assets under management as of December 31, 2017. Lincoln Financial Group is a committed corporate citizen and was named one of the Forbes Best Employers for 2017, is a member of the Dow Jones Sustainability Index North America, and received a perfect score of 100 percent on the 2018 Corporate Equality Index. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.
1 Lincoln Retirement Power® Participant Study, 2017
2 Lincoln Financial Group 2017 Employee Benefits Study
3 LTCG, “2018 Lincoln Financial Group Cost of Care Survey,” https://www.whatcarecosts.com/incoln, February 2018. For a printed copy, call 877-ASK-LINCOLN.
4 “Actuaries Living Longer Illustrator,” American Academy of Actuaries and Society of Actuaries, 2017