Is your plan diversified enough to last a lifetime?

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You’ve worked hard to prepare for retirement, but does your portfolio have everything you need to get through it, and not just to it?
  

Article highlights
   

  • Guaranteed stream of income
  • Fundamental to a diversified portfolio
  • Tax-deferred growth

Here’s an obvious statistic: Ninety-four percent of Americans think it’s important to have a dependable stream of income outside of their Social Security benefits.1  
  
What’s not so obvious is how you get there, and how to maintain the lifestyle you and your loved ones are accustomed to, despite the unexpected costs that usually come with retirement.

 

Retiring with a reliable stream of income

As life expectancies have continued to rise, the previously reliable income options, like Social Security and pensions, have increasingly become less dependable. This has made portfolio diversification far more crucial than it was for past generations. Fortunately, any financial plan can benefit from an additional source of dependable income. This can be gained from incorporating an annuity, which gives you the power of knowing you’ll receive a lifetime stream of reliable income—allowing you to retire with greater confidence.

Prepare for healthcare costs

One benefit of annuities is that they add a level of predictability to your retirement plan. For many, healthcare is one of the largest costs faced in retirement. Recent studies have shown that as many as one in two Americans turning 65 will need some form of long-term care in their lifetime due to a life event or illness.2 A guaranteed income stream can help you offset those costs so you can afford some of life’s unexpected expenses.

Tax advantages

In addition to serving as a reliable way to diversify your retirement portfolio, annuities provide a form of tax diversification, by allowing your assets to grow, tax-deferred, and by offering withdrawal strategies designed to reduce the impact of taxes.
 
The truth is, no one can predict what obstacles they may face in retirement; however, a guaranteed, dependable stream of income can help you overcome some of those challenges and help you maintain your lifestyle through retirement.

Learn more about retirement and tax planning.
 
Explore annuity options from Lincoln, or speak with your financial advisor about the role a Lincoln Financial annuity can play in your retirement strategy.


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Variable annuities are long-term investment products that offer a lifetime income stream, access to leading investment managers, options for guaranteed growth and income (available for an additional charge), and death benefit protection.
To decide if a variable annuity is right for you, consider that its value will fluctuate; it’s subject to investment risk and possible loss of principal; and there are costs associated such as mortality and expense, administrative and advisory fees.
All guarantees, including those for optional features, are subject to the claims-paying ability of the issuer.

1“Guaranteed Lifetime Income Study.” Greenwald and Associates. 2016. 
https://www.lfg.com/ss/Satellite?c=Page&childpagename=LFG%2FPage%2FSubTopicPageLevel5&cid=1429650272869&pagename=LFGWrapper 

2Favreault, Melissa, and Judith Dey. “Long-Term Services and Support for Older Americans: Risks and Financing”, page 1. ASPE. July 1, 2015. https://aspe.hhs.gov/sites/default/files/pdf/106211/ElderLTCrb-rev.pdf

Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.

A fixed indexed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index. The index used is a price index and does not reflect dividends paid on the underlying stocks.

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.

Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 888‑868‑2583 for free prospectuses. Read them carefully before investing orsending money. Products and features are subject to state availability.

Lincoln annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.

Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.

All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.

Diversification cannot ensure a profit or protect against market loss.