Lincoln: Getting clients into the income mindset

April 3 marks the beginning of National Retirement Planning Week, a national effort to encourage and promote savings among Americans as they plan for their financial retirement needs.

Each year, the National Retirement Planning Coalition – a group of education, consumer advocacy and financial service organizations– spearheads this effort to help Americans plan for retirement needs.The urgency to plan for retirement income has heightened now that only 18 percent of U.S. employees have pensions.1 The disappearance of these plans puts more pressure on workers to self-fund their retirement. You know the facts: U.S. equities and government bonds may average returns as low as four percent and zero percent, respectively, over the next 20 years.2

The four-percent rule for portfolio withdrawals was created in 1994, when the S&P 500 was more than 1,500 points lower than it is today and the 10-year Treasury note was nearing eight percent, which meant there was room for growth. Today’s safe withdrawal rate may be somewhere between two and three percent.3 Add longer lifespans, inflation and the rising cost of healthcare into this mix of lower yields and the near disappearance of company-sponsored pension plans, and a serious retirement income challenge emerges.

Rethinking retirement income

These factors mean retirement savers are going to need the help of a trusted financial advisor to navigate these potentially choppy investment waters and help secure a reliable income to support their lifestyle in retirement. That’s why Lincoln’s theme for National Retirement Planning Week is Rethinking Retirement Income. Our job is to help clients realize that they need a thoughtful strategy to turn their savings into dependable income in retirement.

How can you help clients rethink income in this complicated investment environment? Here are a few tips.


In the past, savers built their retirement income using three “legs” – Social Security, pensions and savings. Now, some of your clients may lack a pension – or it may be a shorter “leg.” Social Security is a key part of any retirement income strategy, but if 2017 is any indication, its cost of living increases may not keep pace with healthcare inflation.4 And women clients may have less Social Security available because of lower wages and gaps in employment. Consider how an annuity with guaranteed lifetime income may help transition a portion of clients’ savings into a steady stream of income.


Budgeting for known retirement expenses is a good start to create an income plan. Clients may need to think about unexpected expenses as well. For instance, only 22 percent of consumers Lincoln surveyed feel prepared to fund a long-term care event, even though the majority of people age 65 and older will need some form of long-term care.5  And many retirees these days provide financial support to their children and grandchildren. Having an additional source of reliable income beyond Social Security can help clients feel prepared to handle these unexpected expenses.


Lincoln’s research shows 48 percent of consumers feel it’s likely they could run out of money during retirement. The responses were nearly identical whether or not consumers worked with an advisor. However, advised consumers were more confident on a range of other planning issues. Consumers tell us that they don’t feel confident about making the leap to retirement and being able to maintain their lifestyle without running out of money.6

As an advisor, you can take the long view of market performance and portfolio success rates. But can you do more to give your clients concrete answers about their income plan? By adding an annuity with guaranteed income to clients’ income strategy, you can increase the certainty in the equation and help answer clients’ concerns about the future.

Conversation support

Take advantage of these National Retirement Planning Week resources to support your client conversations:

Contact your Lincoln representative for more information, and don’t forget to follow us on LinkedIn andTwitter for insights and tips all week long.