Forget April Fool’s Day – Celebrate “4/01(k) Day” Instead
March 30 2021 - 10:02AM
Business Wire
Retirement savings shouldn’t be fooled with, so
Lincoln Financial debunks some common misconceptions
Most Americans may know why the chicken crossed the road, but
according to research from Lincoln Financial Group, nearly 60% of
retirement plan participants say they are not on track with their
savings1. This April Fool’s Day, let’s put the jokes aside and
celebrate “4/01(k) Day” instead, and ensure you don’t fall for one
of these common misconceptions.
According to a recent survey of U.S. employees2, people saving
for retirement are confused about several key areas, including how
much to save, how to prioritize paying off debt vs. savings and
rollovers. The celebration of 4/01(k) Day starts with a simple
true/false quiz:
“Saving enough to meet the employer match is enough to keep
me on track for a comfortable retirement.”
(Most likely) False! An employer match
(if offered) is a good place to start, but if you really want to
make sure you have enough of a nest egg to retire when and how you
want, a good rule of thumb is to save at least 10 to 15 percent of
your salary.
“Paying down my student loan debt as quickly as possible is
more important than saving for my retirement.”
True…or False. While you should not
delay saving for retirement, it’s a good idea to speak with a
financial professional to determine how to strategize paying off
debt while also planning for your future. You can also use free
tools like this debt calculator to help you make a plan for paying
off your debt.
“I’ve thought about moving money from an old employer’s
401(k) into my current employer’s 401(k), but it seems like it
would be too much of a hassle.”
False! While it is important to
consider all options of your 401(k) platform prior to making a
decision, the process for a rollover is typically very easy and
brings multiple benefits. Instead of tracking investment
selections, performance or statements for multiple accounts, for
example, you’ll only have to monitor a single account.
But here’s the punch line — while there are still plenty of
misconceptions when it comes to saving for retirement, nine in 10
of those surveyed are no fool when it comes to prioritizing their
future, and disagree with this statement: “Saving for retirement is
not my top priority because I’ll have plenty of time to save for
retirement in the future once I am earning a higher income.”
This is great news, as delaying saving for retirement can have a
big impact due to the value of compound interest.
“Our research shows that while participants understand the
importance of saving for retirement and see it is a top financial
priority, there is still a need for ongoing education to help them
achieve their financial goals,” said Aaron Moore, senior vice
president, retirement plan client engagement, Lincoln Financial
Group. “By leveraging high-touch, personalized service, combined
with access to dynamic digital tools, we can help participants save
for the retirement they envision.”
Employers can also help their employees by offering financial
wellness tools. Lincoln Financial’s financial wellness solution,
WellnessPATH, can help savers create a holistic picture of their
finances, so they can better manage competing financial priorities.
The tool helps participants evaluate how they are doing in four key
areas: saving, debt, spending and protection, so that they can
learn how to make better decisions and take action to improve their
financial health.
For more resources, tools and calculators, visit
LincolnFinancial.com/retirement.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help
people 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, and 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 $303 billion in end-of-period account values as of
December 31, 2020. Lincoln Financial Group is a committed corporate
citizen included on major sustainability indices including the Dow
Jones Sustainability Index North America and FTSE4Good. Dedicated
to diversity and inclusion, we earned perfect 100 percent scores on
the Corporate Equality Index and the Disability Equality Index, and
rank among Forbes’ World’s Best Employers, Best Large Employers,
Best Employers for Diversity, and Best Employers for Women, and
Newsweek’s Most Responsible Companies. 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 2019 Lincoln Retirement Power® Participant Study 2 Retirement
Savings Plan Perceptions & Misconceptions Among U.S. Employees,
Lincoln Financial and CivicScience (2020)
LCN-3509035-032521
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version on businesswire.com: https://www.businesswire.com/news/home/20210330005170/en/
Media Contact: Lucy MacNichol 484-655-4410
Lucy.macnichol@lfg.com
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