Positive Retirement Attitudes Don’t Translate to Positive Retirement Planning: Lincoln Financial

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It’s the gagillionth survey of its type—one that finds a disconnect between optimism and action—and the only thing we can say is keep them coming. After all, education is never a bad thing.

Lincoln Financial Group announced today the results of its latest Measuring Optimism, Outlook and Direction (M.O.O.D.) of America Survey that shows the majority of people polled (81%) feel optimistic about their financial future. That finding is up 13 percent from 2011, the first year the study was conducted.

Those positive feelings are further augmented by 59 percent of respondents saying they expect their financial situation will improve in the next year. This is nearly twice the amount from 2011, when just 33 percent said they expected their financial situation to improve. Additionally, 83 percent feel their lives are headed in the right direction, which is a significant increase over the 66 percent who reported feeling that way in 2011.

Optimism Alone Isn’t Enough

Despite good intentions, these positive attitudes alone are not translating into action-oriented behaviors. The data shows that only 1 in 5 Americans feel “very prepared” for retirement, protecting their wealth and handling income disruptions of varying durations.

The research goes on to identify the top barriers to preparing for the future, which include a sense of feeling overwhelmed by the options for insurance coverage (70%) and retirement planning (67%), as well as the need to prioritize short-term expenses (65%). When it comes to becoming educated on those products and options, just 37% of Americans use advisors as a source of financial advice, which is higher than turning to online search and spouses/significant others.

“While most Americans are optimistic about their financial futures, it’s clear that many more could be turning that optimism into reality by engaging with financial planners and advisors to help secure the outcomes they are looking for,” said Will Fuller, president of Lincoln Financial Group Annuity Solutions, Lincoln Financial Distributors and Lincoln Financial Network. “Being educated and working with a professional advisor is the best route for many Americans – to receive the support and advice they need to maintain their lifestyle in retirement.”

“In Control” Equals a Take Charge Attitude

According to the study, 69 percent of Americans identified themselves as being “In Control,” a mindset that reflects how comfortable respondents feel about their overall life, personal/family health and financial future. This number is up slightly from 2011 (66%).

In Control Americans continue to feel more optimistic, empowered and prepared than those who aren’t. Of those Americans who are In Control, 94 percent feel optimistic about their financial future versus 53 percent of their counterparts. Specifically, they are more likely to own a variety of financial products in the insurance, annuity and retirement categories, as well as prioritize a number of actions to help create a more secure financial future.

Notable financial priorities of In Control Americans include the following:

Lincoln Financial’s 2015 M.O.O.D. of America Survey is the fourth in a series where the company has polled Americans on various topics, including financial attitudes and behaviors. The first survey was conducted in late 2011, and released early in 2012.

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