Lincoln Financial Group Expands YourPath® Target Date Suite to Include Protected Lifetime Income

Rhea-AI Summary

Lincoln Financial Group (NYSE: LNC) has launched Lincoln PathBuilder Income^SM powered by YourPath^®, a new in-plan solution aimed at providing guaranteed monthly income for retirement savers. With over 70% of retirement plan participants showing interest in guaranteed income options, this product integrates with existing risk-based target-date portfolios. Features include 'auto income' to enhance retirement readiness, flexibility for participants, and beneficiary protection. This initiative reflects a growing demand for secure income in retirement planning.

Positive

• Over 70% of participants express interest in guaranteed income options.
• Participants report they would increase contributions if guaranteed income were available.
• The product integrates with existing target-date portfolios, enhancing product relevance.
• Includes features like 'auto income' to improve retirement outcomes.

Negative

• None.

Lincoln Financial Group (NYSE: LNC) today announced the launch of Lincoln PathBuilder Income^SM 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

LCN-3666331-071221

View source version on businesswire.com: https://www.businesswire.com/news/home/20210719005547/en/

FAQ

What is Lincoln PathBuilder Income powered by YourPath?

Lincoln PathBuilder Income powered by YourPath is a new in-plan solution from Lincoln Financial Group that provides guaranteed monthly income for retirement savers.

How many retirement plan participants are interested in guaranteed income options?

More than 70% of retirement plan participants report interest in in-plan investment options that provide guaranteed income.

What features does Lincoln PathBuilder Income include?

It features 'auto income' to enhance retirement readiness, flexibility for participants, and beneficiary protection.

When was Lincoln PathBuilder Income launched?

Lincoln PathBuilder Income was launched recently, as detailed in the press release from Lincoln Financial Group.

How can Lincoln PathBuilder Income benefit retirement savers?

It helps ensure that savers do not outlive their savings by providing a protected stream of income.