2017 LINCOLN RETIREMENT POWER PARTICIPANT STUDY

Transcription

1 RETIREMENT PLAN SERVICES 2017 LINCOLN RETIREMENT POWER PARTICIPANT STUDY Media contact: Kelly DeAngelis Products issued by: The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York LCN Lincoln National Corporation

2 ABOUT LINCOLN RETIREMENT POWER 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. LCN

3 ABOUT HALF OF PARTICIPANTS CONTRIBUTE 10% OR MORE Actual Deferral Rate and Rate Needed to be on Track Actual deferral rate Deferral needed to be on track 5% or less 7% 26% 6% to 9% 10% to 14% 15% to 19% 10% 12% 18% 20% 21% 17% Median 10% 15% 20% to 24% 8% 12% 25% or more 9% 16% Don t know 7% 17% Q22. Approximately what percentage of your salary did you contribute to the plan last year? (Total [n=2,509]) Q23. What percentage of your salary do you think you need to save in your workplace retirement plan in order to be on track with saving for retirement? (Total [n=2,509]) LCN

4 OVERALL, ABOUT TWO IN TEN MAX OUT THEIR CONTRIBUTION Amount Contributed to Plan (If employer offers match) The maximum you're allowed to contribute to the plan 17% More than your employer matches, but less than the max The total your employer will match, but no more 32% 36% Less than the total your employer will match 12% Don t know 2% Amount Contributed to Plan (If employer doesn t offer match) The maximum you're allowed to contribute to the plan 33% Less than the maximum you are allowed to contribute to the plan Not sure 8% Q27. Which one of the following best describes the amount you contribute to the plan? (Employer offers match [n=1,722]) Q28. Which one of the following best describes the amount you contribute to the plan? (Employer doesn t offer match [n=787]) LCN

5 SPIRITS ARE UP FROM PRIOR YEARS Emotions about Retirement Savings Optimistic Confident Anxious Overwhelmed Excited Scared Indifferent Confused Angry 3% 2% 2% 8% 19% 17% 14% 13% 18% 21% 13% 11% 15% 11% 13% 14% 26% 24% 29% 30% 31% 35% 39% 41% 51% 45% % 69% Any positive emotion 51% Any negative emotion 20% Both positive and negative Question: Which of the following best describes the way you feel when you think about your retirement savings? Please select the TWO that describe you best. LCN

6 SAVINGS ARE UP FROM PRIOR YEARS Retirement Plan Account Value: $250K+ $500K+ 23% 17% 10% 10% 7% 4% Question: Which of the following best describes the account value of your retirement plan at work?. LCN

7 SIX IN TEN PARTICIPANTS FEEL THEY ARE CONTRIBUTING LESS THAN IS NEEDED TO BE ON TRACK Percent Who Contribute at Rate Needed to be on Track 19% 54% 12% 45% Contributes more than needed Contributes exact amount Contributes less than needed 8% 8% 9% 11% 26% 27% 27% 20% Overall 10% More than needed 30% Exact amount 22% 43% 65% 63% 62% 67% 60% Less than needed 5% or less 6% to 9% 10% to 14% 15% to 19% 20% to 24% 25% or more Contribution Needed to be on Track Q22. Approximately what percentage of your salary did you contribute to the plan last year? (Total [n=2,509]) Q23. What percentage of your salary do you think you need to save in your workplace retirement plan in order to be on track with saving for retirement? (Total [n=2,509]) LCN

8 MOST SIMPLY CAN T AFFORD TO SAVE MORE FOUR IN TEN SAY OTHER FINANCIAL GOALS GET IN THE WAY Reasons for Not Contributing More (Of those contributing less than needed) You cannot afford to save more You have other financial goals that are more important 38% You are concerned about not being able to access the money until you retire You chose to invest elsewhere 14% 17% Your spouse/partner contributes to his or her plan, so you feel you don t have to contribute more to yours The plan you are offered is not a good plan You do not like the investment options offered in the plan Other Don t know 9% 6% 5% 6% 2% Q24. Which of the following are reasons why you do not contribute more to your workplace retirement plan? (Contributes less than the percentage needed to be saved to be on track [n=1,147]) LCN

9 NEARLY SIX IN TEN SAY THEIR DEBT IS A PROBLEM Types of Debt Possessed Mortgage Credit card debt 49% Current Level of Debt (If has debt) A major problem 13% Car loan Student loans (for yourself) Student loans (for a spouse, child, or other family member) 14% 11% 49% 22% Has any student loan debt Not a problem 42% 58% A Problem Other 3% A minor problem 45% You do not have any debt 15% Q6. Which of the following types of debt do you have? (Total [n=2,509]) Q7. Thinking about your current financial situation, how would you describe your level of debt? (Has debt [n=2,074]) LCN

10 ABOUT HALF OF PARTICIPANTS HAVE THREE OR MORE SAVINGS GOALS, OTHER THAN RETIREMENT Current Savings Goals Other than Retirement Vacation or travel An emergency fund 48% Home improvements To buy a car Future healthcare expenses 23% 22% 39% 57% Saving for an emergency or future healthcare expenses To buy a house 21% College/education (for other family member) A wedding College/education (for yourself) Other 8% 4% 2% 19% 22% Saving for college or education expenses for themselves or a family member None 9% Q8. Besides retirement, which of the following are you currently saving towards? (Total [n=2,509]) LCN

11 COMPETING PRIORITIES ARE A KEY ROADBLOCK TO SAVING Competing Priorities by Age 3+ competing priorities 5+ competing priorities 7+ competing priorities 89% 85% 84% 77% 65% 52% 52% 52% 40% 21% 21% 20% 16% 9% 3% Impact on Success Metrics # of Competing Priorities: Doing a good job saving for retirement Contributes 10%+ Contributes 15%+ Contributes less than needed 0 to 2 3 to 4 5 to % 47% 36% 40% 30% 24% 19% 27% 46% 76% 72% 71% 62% Age of Participant Q6. Which of the following types of debt do you have? (Total [n=2,509]) Q8. Besides retirement, which of the following are you currently saving towards? (Total [n=2,509]) Q22. Approximately what percentage of your salary did you contribute to the plan last year? (Total [n=2,509]) Q23. What percentage of your salary do you think you need to save in your workplace retirement plan in order to be on track with saving for retirement? (Total [n=2,509]) LCN

12 WANT TO LEARN MORE ABOUT LINCOLN RETIREMENT POWER? Media contact Kelly DeAngelis Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN