Using life events to motivate saving

Our Lincoln Retirement Power® research shows that people are more motivated to increase retirement savings after major life events.

Leverage life events as motivation to save

Major life changes may help participants start thinking about and planning more for their futures, which can cause them to increase their retirement plan contributions.

Life events that motivated participants' deferral increases last year1
 

Becoming a parent

53% increased their contribution rate

Getting a promotion

53% increased their contribution rate

Starting a new job

49% increased their contribution rate

Getting a raise or bonus

48% increased their contribution rate


65% of plan participants have experienced a major event— receiving a raise or bonus, knowing someone who retired, moving, getting a promotion, celebrating a milestone birthday, landing a new job, and more — in the past year.2 The majority of participants have recently been extra receptive to saving more.

Capitalize on these events with education

Since participants are naturally motivated to save more when these events occur, it’s a great time to encourage contribution increases.

Top motivators to increase contributions3
 

60%
One-on-one, in-person meeting

Among those who attended a one-on-one meeting, 60% increased their contribution rates

58%
Calculators or worksheets

Among those who used a calculator, 58% increased their contribution rates

52%
Retirement income projections

Among those who projected their retirement income, 52% increased their contribution rates

47%
Information on plan provider’s website

Among those who visited their plan provider's website 4+ times, 47% increased their contribution rates


Offer tools that research shows are effective motivators:

  • Calculators can demonstrate the potential positive effects of saving more.

  • Retirement income projections, such as the tool in Lincoln participant online accounts, put retirement income in real terms and help participants see if they need to save more — and, if so, how much.

  • LincolnFinancial.com/Retirement education on retirement planning and financial wellness can help participants make informed, confident decisions.

  • One-on-one meetings with financial professionals, such as Lincoln retirement consultants, can provide the personal attention participants need to understand their options and take action.

Setting goals leads to positive outcomes

It also may help to encourage participants to set specific goals. Participants who set goals — even goals that aren’t retirement-related — contribute more to their plans than participants with no goals.

Participants who set goals for how much to save for retirement this year:4

  • Are 3x more likely to contribute 15%+
  • Have more than 2x higher median deferral rates
  • Are 1.4x more likely to be confident

Participants who set a non-retirement savings goal this year:5

  • Are almost 2.5x more likely to contribute 15%+
  • Have almost 2x higher median deferral rates

Participants who set a debt payment goal for the year:6

  • Are almost 2x more likely to contribute 15%+
  • Have slightly higher median deferral rates

Use these motivators to encourage participants to save more during life events!
 

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Up-to-date research drives effective strategy

Explore the full Lincoln Retirement Power® study to get more insights about motivating both participants and non-participants to take positive action.

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