How consumers are prioritizing saving during the ‘spending season’
Research Finds Over Half of Plan Participants Have Three or More Savings Goals Competing with RetirementLincoln Financial took its cameras to the streets of Philadelphia to ask passersby for their perspectives on summer savings and retirement priorities
July 17, 2018 — RADNOR, Pa.–(BUSINESS WIRE)–The summer months bring increased expenses for big ticket items like vacations, home improvements and weddings—all of which are competing for consumers’ share of wallet, according to Lincoln Financial Group’s (NYSE:LNC) 2017 Retirement Power® Participant Study. To help consumers prioritize retirement amidst their other summer savings goals, the company is sharing several actionable tips and a new video featuring real consumer perspectives to encourage people to stay on track.
“Every season brings its own set of challenges when saving for retirement, and the summer months have no shortage of distractions,” said Jamie Ohl, president of Retirement Plan Services for Lincoln Financial Group. “It’s easy to lose your focus when you’re considering taking that trip to Europe or putting an addition on the house, but one goal doesn’t necessarily have to come at the expense of another. We want to help savers take some relatively simple steps today to achieve the positive outcomes they envision for themselves and their families later on.”
Below are a few of Lincoln Financial’s tips to help Americans prioritize their financial futures:
- Track Your Spending
Consumers can better understand how much money they will need for retirement by tracking their spending for 90 days, including budgeting for healthcare. Also, tap into a life expectancy calculator to help project the income you would need to sustain your current lifestyle.
- Set a Goal
After running the numbers, consumers may have a specific savings goal in mind. Research shows that people who set savings goals for the year are likely to contribute more to their retirement plans.1
- Pay Yourself First
If you receive unexpected money like a tax refund or a pay raise, don’t spend it all. Consider treating yourself with a portion of the money and stashing the rest in your retirement plan. If it is all in your checking account, you will be more tempted to spend it.
- Trim Unnecessary Expenses
Consumers might be surprised how things add up. Using a financial savings calculator can help show how small changes may help grow retirement savings. Consumers should take a few minutes to review their monthly expenses, from mortgage and car payments to their morning coffee. Cutting a little bit here and there may reveal extra money to save.
- Work with a Financial Professional
One way consumers can feel more confident in making decisions about their financial futures is to increase their knowledge of products that are available to them. A financial advisor can help develop a plan tailored to a saver’s specific needs, as well as provide education about various insurance and retirement solutions.
“Start saving when you are young and take advantage of your employers’ benefits, such as your 403b or your 401k,” said Kim Calloway of Cypress, Ca., who shared her perspective for Lincoln Financial’s video. “Set it aside and you don’t miss it – you really don’t miss it.”
For more information about saving for retirement and how to plan for your financial future, visit www.lincolnfinancial.com/summer.
Watch the video here.
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 March 31, 2018. Lincoln Financial Group is a committed corporate citizen and was named one of the Forbes Best Employers for 2018, 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.
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.
1Lincoln Financial Group’s 2017 Retirement Power® Participant Study.