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Lincoln PathBuilder IncomeSM powered by YourPath® creates "auto income" for retirement plan participants
RADNOR, Pa., July 19, 2021--(BUSINESS WIRE)--Lincoln Financial Group (NYSE: LNC) today announced the launch of Lincoln PathBuilder IncomeSM powered by YourPath®, adding to its suite of in-plan protected income solutions that provide savers a monthly check for life, helping Americans ensure they won’t outlive their savings in retirement. This new product brings together the flexibility of YourPath risk-based target-date portfolios while building on the foundation of Lincoln PathBuilder solutions, by including guaranteed income as part of a target-date retirement option.
"While much of the focus in retirement planning is on saving, only a third of savers feel extremely or very confident that they will have sufficient income that lasts through retirement," said Ralph Ferraro, senior vice president, Retirement Plan Products and Solutions, Lincoln Financial Group. "In fact, we are finding more consumers have significant interest in an in-plan investment option that would provide guaranteed lifetime income, as ultimately, a retirement plan should include a plan for retirement."
More than 70% of retirement plan participants say they are interested in an in-plan investment option that would provide guaranteed income, according to research from Lincoln Financial Group1, and more than half of participants said they would be even more interested if the option were part of a target-date fund1, similar to Lincoln PathBuilder Income powered by YourPath.
Half of interested participants also say they would increase their contribution if a guaranteed income option were offered1. For those who do not currently participate in their employer-sponsored retirement plan, the option could be motivation to start saving, as nearly half said they would be more likely to start participating in a retirement plan if in-plan income was an option.
Next-generation auto feature: Auto income
Over the past decade, automatic plan design features have played an important role in helping improve retirement plan outcomes. Qualified default investment alternatives (QDIAs), automatic enrollment and automatic deferral increases help boost participation and improve plan savings rates, giving participants a better chance to achieve retirement readiness. And now, with Lincoln PathBuilder Income powered by YourPath, employers can help participants generate a protected stream of income in retirement by leveraging the proven success of auto features and including "auto income" as a part of their target-date portfolios.
Flexible and portable
Savers will always have full access to their account balance with Lincoln PathBuilder Income powered by YourPath, as the investment is fully portable, and they have the flexibility to determine when to start taking income at a time that is convenient to them and aligned with their overall plan for retirement. In addition, participants have the option of beneficiary protection, enabling them to pass on the remaining account value to loved ones.
For plan sponsors, Lincoln Financial Group provides a high level of support to plan fiduciaries. Lincoln PathBuilder Income powered by YourPath is aligned with the provisions included in the SECURE Act, and Lincoln has selection and monitoring tools available to employers.
"We know that today’s participants want more options that help them achieve the retirement they envision, and that includes knowing their savings will last a lifetime," said Ferraro. "We look forward to helping more Americans gain the security that comes with knowing they will receive a monthly check for life by continuing to build out our suite of in-plan protected solutions."
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $311 billion in end-of-period account values as of March 31, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ Best Large Employers and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn and Instagram.
1 2021 Lincoln Retirement Power® Study
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Lincoln Financial Group