Lincoln Financial Urges Americans to Review Their Finances Before
Year-End to Help Achieve Retirement Outcomes, Financial Security
RADNOR, Pa.–(BUSINESS WIRE)–A well-structured financial plan may just be the perfect gift you can
give to yourself and others this holiday season.
As this year’s festivities get underway, Lincoln Financial Group (NYSE:
LNC) is strongly urging Americans to take a look at their finances,
preferably with a financial advisor, and “wrap up” their plans before
the end of the year, to ensure programs are set up to take a holistic
approach to achieving long-term retirement outcomes, protecting
financial legacies and ensuring overall financial security.
It is a focus that certainly resonates with people, as evidenced by
results from Lincoln Financial Group’s most recent Measuring Optimism,
Outlook and Direction (M.O.O.D.) of America survey, which found that 87
percent of Americans say planning for financial outcomes with family in
mind is an important consideration.
“Planning for a successful financial future includes finding a healthy
balance between good financial outcomes for yourself and loved ones,”
said Emily Woodson, CFP®, partner of The Financial House and
registered representative of Lincoln Financial Securities. “Issues
around longevity and long-term health care are top of mind for those
entering retirement. People are concerned about having enough to pay
their bills, and being prepared in case something unexpected happens.
It’s important to make sure financial plans are set up to address those
risks, to protect assets and reduce potential financial impact on
Lincoln suggests five key steps to providing consumers and their loved
ones with financial peace of mind:
Catch up on your retirement savings. Just 18 percent of working
Americans over the age of 50 are “very prepared” for retirement,
according to Lincoln’s M.O.O.D. survey, which makes “catch-up”
contributions a great way to boost that number. At the age of 50,
people are eligible to make catch-up contributions of up to $6,000 to
their employer-sponsored retirement plans, increasing the annual
amount they are allowed to save in a plan to a total of $24,000.
Ensure a portion of your portfolio can provide a guaranteed stream
of income during retirement. Chances are today’s savers will spend
20 to 30 years in retirement due to increasing lifespans. Lincoln’s
research shows many of today’s savers delay discussing longevity —
often until they are at retirement’s doorstep. Addressing the
situation early on can help set a person on the right path to success
through the use of products that provide guaranteed lifetime income. A
good retirement income strategy should help protect assets from taxes,
inflation, market volatility and savings withdrawal rates. By
converting a portion of assets into a guaranteed lifetime income
vehicle, such as a variable
annuity with optional benefit riders, an advisor can help
individuals add income certainty within their portfolio.
Add a life insurance policy to an existing financial plan. With
its tax-free death benefits, life
insurance can serve as the financial bedrock of a portfolio,
helping to provide the kind of financial protection most clients want.
And, with tax free access to cash, life insurance, as part of an
overall portfolio, can offer advantages in meeting goals at every
stage of life, including: alleviating some of the cost of a child’s
school tuition; strengthening retirement savings; creating additional
cash flow while reducing tax exposure; and, helping to protect wealth
for future generations.
Have a conversation with a financial advisor about long-term care. The
most debilitating changes to income and lifestyle may result from an
unanticipated long-term health care event. Knowledgeable advisors
recognize the potential impact of such an event to a client’s
portfolio. According to Lincoln’s M.O.O.D. of America survey, 75
percent of Americans say they are motivated to help pay for long-term
care expenses, yet only 11 percent own long-term care insurance.
Today’s marketplace offers a number of different types of solutions to
help provide a cushion against unanticipated long-term care expenses.
Understanding the differences in policies and implementing solutions
that best fit your care wants, and needs can make the difference in
achieving a desired financial outcome during retirement.
Take stock of benefits at the workplace. While most employees
are generally familiar with retirement plans and medical insurance,
offered by employers today may be less well-known, such as
disability insurance or accident insurance, or even life insurance.
Many working Americans just went through an annual “open enrollment”
period, and should make sure they take advantage of those benefits
provided. For example, dental insurance and vision insurance typically
provide for certain benefits on an annual basis. It is the season of
giving, and now’s the time to give to yourself – fit in a teeth
cleaning or get that new pair of eyeglasses, before the year comes to
“Lincoln’s M.O.O.D. survey shows that 95 percent of Americans trust
their financial advisor,” said Woodson. “That’s why we recommend working
with an advisor to better understand all of the options available to
develop a customized, comprehensive plan aimed at achieving specific
goals, and protecting family interests. A secure financial future is a
gift that will last for you, and your family.”
To find a trusted advisor, Lincoln suggests beginning the search by
asking friends for referrals or visiting websites of financial
associations, such as the Certified
Financial Planner Board of Standards (CFP) or Financial
Planning Association (FPA). Advisors who are credentialed by these
types of associations are great resources and have completed rigorous
requirements around complex financial regulations.
About the M.O.O.D. of America
Results for the 2016 M.O.O.D. (Measuring Optimism, Outlook and
Direction) of America poll are based on three national surveys conducted
by Whitman Insight Strategies on behalf of Lincoln Financial Group in
March and April 2016.
The M.O.O.D. of America survey was conducted among 2,267 adults 18 years
of age and older across the United States, and included a sample of the
General Population as well as over-samples to ensure data cuts by key
demographic sub-groups that are of particular interest for this
research. The final sample includes 405 African Americans, 402 Asian
Americans, 402 Latino Americans, and 418 LGBT Americans. The margin of
error is ±1.9% at the 95% confidence interval.
About Lincoln Financial Network
Lincoln Financial Network (LFN), the marketing name for Lincoln
Financial Advisors Corp. (LFA) and Lincoln Financial Securities Corp.
(LFS), is the retail wealth management business of Lincoln Financial
Group (LFG). Consisting of approximately 8,500 agents, representatives,
and full-service financial planners throughout the United States, LFN
professionals offer expertise through planning and advisory services,
retirement services, life and long-term care solutions, annuities,
investments, and trust services to affluent individuals, business owners
and families. Affiliates are separately responsible for their own
financial and contractual obligations.
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 $228 billion in assets
under management as of September 30, 2016. Learn more at: www.LincolnFinancial.com.
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Lincoln Financial Group® affiliates, their distributors, and their
respective employees, representatives, and/or insurance agents do not
provide tax, accounting, or legal advice. Please consult an independent
advisor as to any tax, accounting, or legal statements made herein.
Variable annuities are long-term investment products designed for
retirement purposes and are subject to market fluctuation, investment
risk, and possible loss of principal. Variable annuities contain both
investment and insurance components and have fees and charges, including
mortality and expense, administrative, and advisory fees. Optional
features are available for an additional charge. The annuity’s value
fluctuates with the market value of the underlying investment options,
and all assets accumulate tax-deferred. Withdrawals of earnings are
taxable as ordinary income and, if taken prior to age 59½, may be
subject to an additional 10% federal tax. Withdrawals will reduce the
death benefit and cash surrender value.
Investors are advised to consider the investment objectives, risks,
and charges and expenses of the variable annuity and its underlying
investment options carefully before investing. The applicable
prospectuses for the variable annuity and its underlying investment
options contain this and other important information. Please call
888-868-2583 for free prospectuses. Read them carefully before investing
or sending money. Products and features are subject to state
Lincoln variable annuities are issued by The Lincoln National Life
Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial
Distributors, Inc., a broker-dealer. The Lincoln National Life
Insurance Company does not solicit business in the state of New York,
nor is it authorized to do so.
Contracts sold in New York are issued by Lincoln Life & Annuity Company
of New York, Syracuse, NY, and distributed by Lincoln Financial
Distributors, Inc., a broker-dealer.
All contract and rider guarantees, including those for optional
benefits, fixed subaccount crediting rates, or annuity payout rates, are
subject to the claims-paying ability of the issuing insurance company. They
are not backed by the broker-dealer or insurance agency from which this
annuity is purchased, or any affiliates of those entities other than the
issuing company affiliates, and none makes any representations or
guarantees regarding the claims-paying ability of the issuer.
There is no additional tax-deferral benefit for an annuity contract
purchased in an IRA or other tax-qualified plan.
Lincoln Financial Group is the marketing name for Lincoln National
Corporation and its affiliates, including broker-dealer/distributor
Lincoln Financial Distributors, Inc., Radnor, PA, and insurance company
affiliates The Lincoln National Life Insurance Company, Fort Wayne, IN,
and Lincoln Life & Annuity Company of New York, Syracuse, NY. Affiliates
are separately responsible for their own financial and contractual
All guarantees and benefits of the insurance policy are subject to the
claims-paying ability of the issuing insurance company. They are not
backed by the broker-dealer and/or insurance agency selling the policy,
or any affiliates of those entities other than the issuing company
affiliates, and none makes any representations or guarantees regarding
the claims-paying ability of the issuer. Distributions are taken through
loans and withdrawals which reduce a policy’s cash surrender value and
death benefit and may cause the policy to lapse. Loans are not
considered income and are tax free. Withdrawals and surrenders are
tax-free up to the cost basis.