|[February 20, 2014]
Study Identifies Ways to Help Healthcare Workers Boost Retirement Readiness
RADNOR, Pa. --(Business Wire)--
Lincoln Financial Group's Retirement Plan Services business announces
results of a study examining the savings mindsets and behaviors of
retirement plan participants in the healthcare sector1. As
part of the Lincoln Retirement Power® research series, the healthcare
participant engagement study identifies unique characteristics of
healthcare workers and provides valuable insights for organizations
seeking to improve the effectiveness of their retirement plan offering.
Compared to workers in other industries, key study findings show that
healthcare workers are more likely to:
Be motivated by positive life events and outlooks. Hope
influences 93% of healthcare workers - specifically, the hope of
accumulating enough money by the time they retire.
Seek input from a wide variety of sources. These information
gatherers also report they have a hard time making decisions including
whether to participate in a plan, how much to defer and how to direct
Be more concerned than others about meeting basic financial needs.
62 percent of workers are concerned about being able to pay for
day-to-day expenses, compared to 49% of workers in other sectors.
Get retirement information from financial professionals. When
asked which of several options would motivate them to make positive
changes in their retirement savings plan, three in five healthcare
workers select a one-on-one, in-person meeting with a financial
professional as their first or second choice. Two in five select
in-person group meetings at their workplace.
Save up to their company match. While these savers are taking
full advantage of an available match, they report that they do not
save beyond their employer match.
"The study's findings provide relevant insight on effective methods for
plan sponsors to connect with healthcare participants in a more
meaningful way," said Chuck Cornelio, President, Retirement Plan
Services, Lincoln Financial Group."This research can help plan sponsors
work with their providers to structure a retirement plan program to
engage and motivate healthcare workers to participate fully and,
ultimately, help boost their retirement readiness."
Based on the study, healthcare employers can consider the following
suggestions for engaging employees to save in their employer-sponsored
Develop a retirement communications program that highlights positive
messages, focuses on outcomes and educates plan participants about how
to meet their daily expenses while also saving for the future.
Offer retirement education and one-on-one meetings with a financial
professional during work hours - preferably in a few different time
slots - to reach employees when and where it's convenient for them.
Optimize plan participation through automatic plan provisions, such as
auto-enrollment, and auto-escalation.
Provide access to an IRA for supplemental savings and offer retirement
communications that provide education on the importance of saving at
least up to the company match.
To learn more about how healthcare organizations can increase the
effectiveness of their employer-sponsored retirement plans, read the
Lincoln Retirement Power ® Participant Engagement Study white paper, "Seeking
Financial Health: How Healthcare Workers Participate in Retirement
About Lincoln Financial Group's Retirement Plan Services:
For more than 60 years, Lincoln Financial's Retirement Plan Services
(RPS) business has been helping savers boost their retirement readiness
through employer-sponsored plans. Our distribution force of more than
400 professionals, including institutional and wholesale distribution
channels and advisor-based sales teams, work to provide plan sponsors
with retirement plans that not only meet the unique needs of their plan
participants but also align with sponsors' total rewards strategies and
help recruit and retain top talent. RPS Retirement Consultants,
available onsite, online and by phone, develop long-term one-on-one
relationships with savers to help motivate them to take actions that
lead to better retirement outcomes. RPS offers personalized services,
solutions and education to help plan participants get to and through
retirement. The business serves approximately 1.4 million participants
through 22,000 plan sponsors with $52 billion in assets under management
as of December 31, 2013.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National
Corporation (NYSE:LNC) and its affiliates. With headquarters in the
Philadelphia region, the companies of Lincoln Financial Group had assets
under management of $207 billion as of December 31, 2013. Through its
affiliated companies, Lincoln Financial Group offers: annuities; life,
group life, disability and dental insurance; employer-sponsored
retirement plans; savings plans; and comprehensive financial planning
and advisory services. For more information, including a copy of our
most recent SEC (News - Alert) reports containing our balance sheets, please visit www.LincolnFinancial.com.
1 Lincoln Retirement Power® Participant Engagement Study,
Lincoln Financial Group 2012
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