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Understanding financial wellness, retirement readiness and plan health

In the study, You are here: Understanding financial wellness, retirement readiness and plan health, the Lincoln Financial Group explored three emerging trends in retirement plan administration.


  1. Financial wellness programs. Similar to health wellness programs, financial wellness programs can be adopted by a plan sponsor to improve an individual’s financial health so he or she can accomplish specific financial goals, such as saving amounts sufficient for retirement. In many cases, low participation and savings rates in retirement plans are the results of an inability to save due to financial challenges, such as poor budgeting and credit card debt.

  2. Retirement readiness communications. Retirement readiness communications are designed to help participants understand how much income they may need to achieve their retirement goals, whether their savings are on track, and how any shortfalls can be addressed. For plan sponsors, retirement readiness indicators provide an opportunity to monitor success for the entire participant population.

  3. Plan health reporting. A complete Annual Plan Review or a more streamlined version — the plan health report — includes key plan metrics, such as participant savings, investment outcomes and other indicators of retirement readiness. Plan sponsors can easily identify opportunity areas, such as specific groups of employees whose savings rates or investments aren’t in line with their retirement goals. Reports also can help support plan sponsor goals and initiatives.












Optimal plan health is achieved when you take full advantage of financial wellness and retirement readiness programs and communications.



To learn more about this research or to begin developing your organization’s action plan toward optimal plan health, please get in touch by calling (800) 388-1963 or e-mail us at hbs@hanys.org.

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