Pandemic Spurred Eight out of 10 People to Reevaluate Life and Finances
October 11 2021 - 10:05AM
Business Wire
People are investing more in themselves and
their financial wellness, says new study from Lincoln Financial
Group, giving employers an opportunity to help
The last 18 months have had a significant impact on businesses,
the economy and society — and nearly eight in ten U.S. workers are
reevaluating what is important in life, including finances, their
career and retirement, according to Lincoln Financial Group’s
(NYSE: LNC) 2021 Retirement Power® study.
People participating in an employer-sponsored retirement plan
are especially motivated — more than two out of three (69%) say
they intend to save more in their retirement plan. Participants are
not the only people looking to invest in their futures, though, as
nearly half of those who have access to workplace retirement
benefits but do not currently participate, plan to start
contributing. This makes now the perfect time for employers to
celebrate National Retirement Security Month and take steps to help
their employees achieve the retirement they envision.
“It is clear that while the COVID-19 pandemic affected everyone
to different degrees, what the majority of workers have in common
is their focus on improving their financial wellness,” said Sharon
Scanlon, senior vice president, Customer Experience and Producer
Solutions, Lincoln Financial Group. “People are looking to their
employers now for resources and education that will help them turn
those good intentions into action so that they can achieve
financial security.”
Retirement plan participants are more likely to turn to their
employer for information about financial topics, and employers can
help employees lower stress and improve retirement readiness by
focusing on three core areas: financial wellness, education and
retirement income security.
Competing priorities: The need for Financial Wellness
More than three quarters (76%) of those surveyed reported having
at least three competing financial priorities, which can make it
difficult to balance the needs of today with saving for the future.
It can also increase stress, so it is no surprise that more than
nine in 10 employees report feeling stressed, which can also impact
job performance.
Offering financial wellness resources can help — in fact, 86% of
employees who use financial wellness tools say they see a positive
impact as a result. Seeing a holistic view of their financial
health, including spending, saving, debt and protection, can help
them better plan for and achieve multiple financial goals.
The importance of education
Education and tools can help employees make sound financial
decisions, and also drives their overall confidence and engagement.
Savers who use employer-provided financial resources are more than
twice as likely to have increased the amount they contribute to
their retirement plan in the past year.
However, eight in 10 employees say there is more they want to
understand when it comes to certain financial topics, including investment options within their
retirement plans. It is critical for employers to provide access to
and awareness of the right tools that can help employees understand
how to make better decisions when it comes to saving for
retirement, including one-on-one retirement consultations,
retirement income projections, calculators and more. With 60% of
participants saying they are saving less than needed to be on track
for retirement, these are all important levers to help them
understand how and why to save more.
As open enrollment season approaches, employers can also
consider what additional materials could be helpful for employees
as they look at their holistic financial picture and benefits
package.
Planning ahead for a secure retirement
As employees continue to endure the uncertainty and financial
anxiety onset by the pandemic, their interest in retirement income
products has dramatically increased — currently 72% percent of
employees are interested in what guaranteed income products can
mean for their financial futures, and nearly half say they would
increase their contribution if guaranteed income were offered.
“After a year filled with the unexpected, people are looking for
something they can rely on,” said Ralph Ferraro, senior vice
president, Retirement Plan Products and Solutions, Lincoln
Financial Group. “In-plan guaranteed income solutions can help
provide that, giving people the confidence that they will not
outlive their retirement savings.”
For additional details from the study, click here, and check the
Lincoln Financial Group newsroom for additional content throughout
National Retirement Security Month.
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 $324 billion in end-of-period account values as of June
30, 2021. 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’ Best Large Employers 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.
LCN-3854492-100621
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Media contact: Bianca Gizzi bianca.gizzi@lfg.com
484-460-6700
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