During the week, Lincoln will feature videos on YouTube offering simple tips to help Americans take actions that will better prepare them for retirement. In addition to the video series, Lincoln is providing plan sponsors and participants with comprehensive communication and education tools designed to promote National Save for Retirement Week and help plan sponsors educate their plan participants about the advantages of participating in an employer-sponsored retirement plan.
With the presidential election following closely behind National Save for Retirement Week, Lincoln’s 2012 Participant Study found that only 21% of Americans believe the presidential election will have an impact on their retirement outlook. In addition, 72% of Americans say the economy makes it challenging to stay on track with their retirement savings.
“With everything that Americans have on their minds today, the economy weighs heavily on their retirement savings decisions,” said Chuck Cornelio, president of retirement plan services at Lincoln Financial Group. “People need encouragement and support to help them focus on taking the right steps and stay on track with their retirement savings goals.”
Lincoln has also provided several tips for keeping participants on track for retirement:
Enroll in your employer-sponsored plan. For many people, the only way they may have to save for retirement is through their employer-sponsored retirement plan. Participating in an employer-sponsored retirement plan reduces a participant’s taxable income today while helping to build retirement savings for tomorrow.
Consolidate assets and roll over into a current plan. Today’s workers change jobs multiple times in their careers. Consolidating retirement assets helps to simplify the savings and income planning process and can help money grow over time.
Schedule a retirement plan checkup with a financial professional. Just like an annual physical, Lincoln recommends participants meet with their advisers at least once a year for an annual checkup of their retirement savings plan. Scheduling it around a birthday, annual pay raise or during National Save for Retirement Week makes it easier to remember.
Resist the temptation to borrow against the plan. Unexpected costs may come up, and participants may be tempted to borrow. This is especially true during a down market. When participants borrow against their plan, they may miss out on potential returns when the market recovers.
Increase contributions with income boosts. There are times when a participant may receive extra cash from a tax refund, a bonus, a salary increase or some other pleasant surprise. Consider increasing contributions every year and saving any extras. Even increasing by a percentage or two can make a big difference in the long run. When the maximum contribution level is reached, an adviser can help participants find the right place to put additional savings.
Stay invested. Although retirement may seem far off for some people, it is important to get on track early and then stay the course.
Lincoln is also offering savings tips on Twitter @lincolnfingroup, with special National Save for Retirement Week hashtag#SAVE2RETIRE.