The lazy days of summer are often a carefree time, but this year is a bit different given the pandemic and a volatile stock market.
Many Americans are feeling things like their health, job and retirement savings are at risk.
U.S. adults are most concerned about protection in times of economic uncertainty, according to a June 2020 Protection Study by Lincoln Financial Group and CivicScience.
Specifically, the study found the pandemic has increased Americans’ concerns around having enough money saved for emergencies (39%), the impact of market volatility on their investments (30%), as well as having enough money for a comfortable retirement (29%).
“This year’s volatile market, along with the pandemic, has reinforced for many consumers just how important it is to have a well-rounded financial plan, one that can help weather these challenging times and set you up for success in the long-term,” said Jamie Ohl, executive vice president and president, Retirement Plan Services for Lincoln Financial Group.
“Make it a priority to have open conversations about your finances and your retirement goals with your loved ones so you can create a strategy to protect your future.”
Now is the perfect time to explore how to best protect against risk. Don’t get burned—apply SPF (Save, Protect, Fund)!
Here are five suggestions from Lincoln Financial on how consumers can create a more robust financial protection plan:
• Fund the Future.
Life insurance can be more than just a death benefit, with some types of policies offering income replacement for unforeseen events.
It can also protect your financial security from the impact of taxes, market volatility and longevity. It’s not just for individuals and families either, but businesses too.
• Protect Your Paycheck.
Go beyond health insurance and look at disability, accident and critical illness coverages, especially those available through your employer, to prevent income gaps and keep you from paying out of pocket for covered expenses.
• Add Protection to Your Portfolio.
Consider diversifying your portfolio with an annuity.
It can provide protected growth and monthly lifetime income for a portion of your portfolio – to help cover expenses in retirement and ensure you have a stream of income throughout retirement.
• Reimagine Your Retirement Plan.
As a result of the SECURE Act, in-plan guaranteed income options can serve as a powerful tool to protect savings during periods of market volatility, while still benefitting savers when the market goes up.
Savers should also stay focused on the long-term, and remember that saving for retirement is a marathon, not a sprint.
• Create a Cushion.
The expense of an unexpected long-term healthcare event may not be something you’ve considered in your plan.
Unfortunately, these events can come on suddenly, and be very costly, so don’t wait -- make sure you have a strategy to cover the cost of care if you or a loved one needed it.
Visit www.lincolnfinancial.com for more tips and resources.
To protect your future, it is important to have a robust, multifaceted financial plan in place, particularly during times of economic uncertainty. (StatePoint)