RADNOR, Pa.--(BUSINESS WIRE)--Retirement savers across the country acknowledge they aren’t saving as much as they think they should for their retirement1, so this National Retirement Security Week (Oct. 15-21), Lincoln Financial Group (NYSE: LNC) is urging savers to take one simple step to help them feel more confident about their retirement and conquer the competing financial priorities that are taking them off track — set a goal. According to the Lincoln Retirement Power® Participant Study, people who set financial goals are seven and a half times more likely to be confident about retirement and save at a rate that is twice as high as those who do not have a goal.
Among participants who are saving less than they think they need, the top two reasons they aren’t saving more are that they “can’t afford to save more” and “have other financial goals that are more important.” While debt is also a factor, other financial goals like saving for a vacation or an emergency fund are also putting pressure on retirement savings and fighting for consumers’ share of wallet.
“Our study showed that the more competing priorities a person has, the less likely that person is to save as much as they think they should to be on track for retirement,” said Jamie Ohl, president, Retirement Plan Services, Lincoln Financial Group. “Setting a goal for how much you want to save for retirement this year is so simple, yet it has a significant positive impact.”
Individuals who set a retirement savings goal have a median deferral rate of 12 percent — twice that of those without a goal. Setting other financial goals, like paying off debt, can also have a positive impact on retirement savings. The median retirement savings rate among people who have set a goal for how much debt they want to pay off this year is 10 percent — as opposed to 7 percent for those who have not set a goal.
“As more and more Americans become solely responsible for their retirement security, it’s critical that they get on track with their retirement savings,” said Ohl. “With retirement sometimes seeming far off, it can be easy to prioritize more immediate financial needs. But providers and employers need to continue to encourage employees to set goals, save more, and to help them understand how what they’re saving now will translate into income in retirement.”
Lincoln Financial has a number of easy-to-use, interactive online calculators and tools that can help make financial planning easier, and provide information and tips on setting goals and saving for retirement.
National Retirement Security Week was established by Congress in 2006 as National Save for Retirement Week as a way to promote retirement savings among Americans and encourage employees to participate in their employer-sponsored retirement plans. The U.S. Senate recently passed a resolution continuing its support of the week, as employer-sponsored retirement plans become increasingly important to American savers.
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 $241 billion in assets under management as of June 30, 2017. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn, and Instagram. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
About Retirement Plan Services
For more than 50 years, Lincoln Financial Group’s Retirement Plan Services (RPS) business has been helping savers boost their retirement readiness through employer-sponsored plans. Our retirement plans help employers recruit and retain top talent, while our combination of high-tech and high-touch service creates an engaging customer experience that drives positive outcomes. The RPS business helps people understand how steps they take today can help them get to and through retirement tomorrow. The business serves approximately 1.4 million participants through 21,000 plan sponsors with $63 billion in assets under management as of June 30, 2017.
About the Lincoln Retirement Power ® Participant Study
The 2017 Lincoln Retirement Power® Participant Study is based on a national survey of 2,509 full-time workers ages 21 to 70 who have been contributing to their current employer’s defined contribution retirement plan for at least one year — with data weighted by demographics to mirror the total population. Established in 2010, Retirement Power is a platform for research and viewpoints on central issues related to retirement planning. The program seeks to identify forward-thinking ways to help plan sponsors, advisors, intermediaries and participants. As part of the program, Lincoln sponsors both proprietary and third-party research with an emphasis on what drives better retirement outcomes.
1 Lincoln Retirement Power Participant Study®, 2017