What’s the future of retirement?
While no one can predict the future, lessons learned from current retirees can help us better prepare future retirees for what they may experience after they stop working.
Today's workers face a different retirement
The retirement landscape is changing, and with that change comes a duty to help plan sponsors prepare their employees for the new state of retirement. Planning ahead for retirement is vital. Many current retirees had pensions, so they didn’t need to do a lot of planning, but most current workers don’t.
Helping participants understand their retirement income needs and how much they should be saving to help reach their goals is critical to preparing them for successful retirements.
Education on claiming Social Security
61% of current retirees claimed Social Security before age 65.4
A key piece of the retirement income puzzle is Social Security, but many retirees claim it too early to maximize their benefits.4 Educate current workers about delaying their claims to help them get the highest possible income. And let’s not forget, the uncertainty regarding the future of Social Security provides an even greater imperative for current workers to save more for their futures.
Preparing for the unexpected5
Educate participants about the potential cost of healthcare in retirement, especially long-term care, to help motivate them to prepare for the unexpected by building an emergency fund, increasing their retirement plan contributions, or even contributing to a Health Savings Account (HSA). Additional education about the reality of other retirement expenses may provide significant motivation, as well.
Contact your Lincoln representative to see how we can help your clients’ employees prepare for life after work.
1Insured Retirement Institute (IRI), It’s All About Income: Inaugural Study on the American Retirement Experience,
https://www.myirionline.org/docs/default-source/research/iri-income-report-final.pdf?sfvrsn=2, September 2016
2Cerulli, Evolution of the Retirement Investor, 2015; U.S. Bureau of Labor Statistics, 2016.
4IRI, It’s All About Income: Inaugural Study on the American Retirement Experience, 2016.