Simplify and demystify some of the language around retirement planning
April is Financial Literacy Month, and it serves as a reminder of the important work you do for your clients. It's also an excellent opportunity to discuss the importance of financial literacy with your clients and reaffirm their financial needs and goals.
Lifelong learningFinancial literacy is a broad category — including everything from the basics to the bond market. Now, consider how quickly things change. As technology evolves and our spending priorities and patterns change, so do the financial services and products we rely on. What your clients have learned, or thought they knew, may no longer be accurate.
That’s particularly true for those nearing or in retirement. With people living longer than ever and the decline of employer pensions, the responsibility to save for retirement and manage retirement income has largely shifted to the individual.
So much of what we once believed about retirement planning has changed. Ideas such as the three-legged stool metaphor, the 4% rule, or the 60/40 portfolio may no longer hold. On top of that, 63% of American adults say they have no source of protected income other than Social Security.1
A targeted client conversation
While the opportunity to talk about retirement income strategies is wide open, the conversation may not be so easy. Annuities, like many financial products, can be difficult to understand. In fact, 62% of financial professionals believe that complexity is a key challenge with offering guaranteed lifetime income products, such as annuities.2
The good news is that there are ways to simplify the conversation.
Making annuities easier to understand
So, how do you start the conversation with clients? With language that they understand.
When you speak in a way that your clients understand, you not only make annuities more understandable, but you may also improve decision making, which may lead to stronger retirement income planning.
The Annuities Language Glossary is a resource for you and your clients. Developed using research and insights from The Alliance for Lifetime Income, the glossary helps to demystify key industry and annuity product terms.
It’s meant to give you extra support to help make your conversations with clients more productive when presenting protected lifetime income strategies and helping them meet their financial and retirement goals.
You play a major role in educating your clients about the importance of retirement income planning. For more resources and tips, contact your Lincoln representative.
Partner with us
Contact your Lincoln representative today at 877-533-0265 for more about the fixed income dilemma and successful strategies to diversify retirement portfolios. For additional tips and insights, make sure you follow us on LinkedIn and Twitter.
About the author
Kathy Kavanaugh is Senior Vice President, Chief Marketing Officer of Distribution Marketing for Lincoln Financial Distributors and Lincoln Financial Network.
Kavanaugh leads the distribution marketing strategy for Lincoln’s Annuity Solutions, Insurance Solutions and Small Market Retirement Plan Services businesses, as well as Lincoln Financial Network. Her organization capitalizes on product and digital marketing, sales campaigns, enterprise-wide support for creative production and operations, and research and customer insights to drive business objectives and enhance the experience of Lincoln customers, including distribution partners and clients.
In 2018, Kavanaugh serves as an executive member of Lincoln’s operational team to launch The Alliance for Lifetime Income, an industry coalition comprised of financial services organizations, industry experts and consumer advocates, with a shared goal of educating Americans on the importance of protected lifetime income and the unique benefits annuities provide consumers.
Kavanaugh has more than three decades of marketing experience in the insurance space, having previously served as Vice President, Life and MoneyGuard Marketing for Lincoln. Before that, Kavanaugh served as Vice President, Retirement Services Marketing for AXA Equitable. She began her career at PLANCO, which was later purchased by The Hartford Group.
Kavanaugh earned a master of business administration degree from St. Joseph’s University, Philadelphia.