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Lincoln National's (LNC) Measures to Offer Customized Retirement Plans

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Lincoln National Corporation (LNC - Free Report) is adding value to the customized investment plans offered via Morningstar Investment Management’s advisor managed accounts service. The addition will allow more personalization with employer-sponsored retirement plans.

Advisor managed accounts, which were being used as a voluntary option for all participants, are now available as part of the dynamic Qualified Default Investment Alternative (QDIA) strategy. A comprehensive QDIA offers feasibility to the plan for providing two QDIA choices i.e., the plan’s primary QDIA and an advisor managed account as a secondary QDIA on the basis of certain age criteria.

To meet participants’ demand, plan sponsors are looking for personalized investment advice and Lincoln National is catering to the same.
Customers can now plan their retirement at ease, which offers them some respite amid the current situation.

The company provides managed accounts via Morningstar Investment Management’s chain of advisory firm relationships. Advisory firms can gain traction from their own advisors to design excellent retirement plans for participants that can be offered via Lincoln National’s recordkeeping system.

The customized investment plans provided via Lincoln Alliance program allow the RIA to leverage information about each participant to curate portfolio used by the program. The latest solution will render relief to the retirement plan participants.

This is not the first time that the currently Zacks Rank #2 (Buy) company took initiatives to fulfill retirement requirements. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In March, it introduced a defined contribution solution named Income America 5ForLife in a bid to deliver a guaranteed monthly retirement income to its plan participants. This leading life insurance company devised this solution in collaboration with other well-established retirement firms including American Century Investments, Nationwide, Prime Capital Investment Advisors and Wilshire among others.

Notably, per the 2020 Retirement Plan Participant study conducted by American Century Investments, above 80% of participants, if given an income option, was keen to place their assets under their retirement plan.
As a testament to the company’s constant efforts to achieve retirement needs, Lincoln National has been launching variable universal life (VUL) insurance offerings from the beginning of this year with an added emphasis to include a long-term care (LTC) rider.

Apart from helping retirement plan participants to attain their retirement goals, back-to-back unveiling of solutions is likely to pave the way for the company’s efficient performance.

These endeavors are ramped up further amid the ongoing COVID-19 pandemic, which induced financial insecurities worldwide. Markets have remained volatile since the onset of the outbreak, which heightened the need for offering protection to the savings of Americans. Also, an aging U.S. population and the increased number of people reaching the retirement age stress the urgency for enhanced retirement plans.

Price Performance

Shares of Lincoln National have surged 54.2% in a year compared with the  industry’s growth of 20.3%. The company's strong life business, Group segment, acquisitions and business streamlining should further drive growth.

Zacks Investment ResearchImage Source: Zacks Investment Research

Other companies in the same space, such as Manulife Financial Corp (MFC - Free Report) , MetLife, Inc. (MET - Free Report) and Old Republic International Corporation (ORI - Free Report)   have gained 41.2%, 57.8 % and 49.1% in the same time frame.

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