Written by: Kim Genovese

We've been celebrating our 120th anniversary at Lincoln Financial, and it's given me a great opportunity to reflect on the nearly two and a half decades I've been here — especially the changes I've seen over the years. One thing that's been consistent is our commitment to innovation.

Why does innovation matter so much? Whether we're looking at the early 1900s or today, the answer can be found in the headlines — especially those that are disrupting client confidence (and their portfolios).

An annuity industry survey paints a concerning picture for 2025: “a jittery macroeconomic backdrop: fears of recession, rate uncertainty, geopolitical instability, and renewed concern over trade and tariffs.” But there's a positive note: “the mood is not panic — it is strategic adaptation.”

Here's a little background on Lincoln, and the top three things that stand out when I consider the importance of constantly testing and building new approaches for new markets.

A part of Lincoln's DNA

When it comes to innovation, we have deep roots as a creative, leading-edge company.

  • In 1905, our founders vowed to focus on honesty and dependability as a response to ongoing insurance scandals.
  • We brought in our first actuary in 1910 — whose expertise helped us insure more people, including those with health challenges.
  • In 1918, we introduced our first annuities to help protect older Americans in retirement.

One of my favorite stories is how some of our expertise in product development helped establish Lincoln as a forward-thinking annuity leader. We had a particularly big breakthrough in 1967: the first truly workable variable annuity. At a time when inflation had quietly eroded retirement savings, we saw long-term opportunity in equities, and leveraged them with a solution that was data-driven, properly priced and designed to last.

Since then, our annuity innovations — including today's registered index-linked annuities (RILAs) — have helped thousands of retirements and families with growth opportunities, downside protection and options for protected lifetime income.

Three ways RILA innovation can help make the difference through market turmoil

When I helped shape our first RILA in 2017-2018, there was no way we could foresee what we would be facing today. It's one thing to build out a plan when the skies are clear. But it's a completely different thing when you're in the middle of market volatility and changing tides.

1. The need for income always comes first. Innovation helps keep it there.

There's still one overarching need when it comes to clients' retirement assets. It's the same thing they needed when we introduced our first annuities in the Roaring Twenties: reliable income that lasts their whole life.

The numbers tell a very clear story. According to Goldman Sachs:

  • 63% of clients want guaranteed, consistent income throughout retirement
  • An additional 17% want longevity protection — money that won’t run out
  • Only 10% want to maximize their income, if it doesn’t come with protection attached

Annuities have long offered guarantees, of course. But innovation is expanding how income can be created.

Today's enhancements help create strong income plans — our own RILA offers opportunities for market-linked growth, the ability to lock in growth at any point through a term, reset downside protection and upside potential, access powerful options for protected lifetime income and much more.

This means you can help your clients feel confident with their retirement cash flow without locking them into something that may not meet their needs down the road. Investments like RILAs offer more flexibility, predictability and clarity than many annuities have in the past, which can be game-changing for long-term plans. 

2. A new twist on a time-tested approach helps drive diversification (and results)

Most investors need growth before they take income. It's become a lot harder to just invest in a passive 60/40 portfolio and kick off a 4% withdrawal stream down the road with the volatility we're seeing today.

Active management with RILAs can make a big difference. I think our friends at Capital Group put it best:

“Until recently, strategies linked to indexes were the only kind available in RILAs, making those investments passive and leaving purchasers with little option for diversification beyond an index. The advantage of an active strategy is most apparent … in market conditions where disciplined selection and strategic positioning could help drive stronger results than a passive index alone.”

Capital Group offers the example of the Magnificent Seven, the S&P 500 megacaps that comprised more than 38% of the index at the end of 2024. Concentration risk is a real concern.

Active management — the best ideas of some of the most seasoned investing professionals in the world — combined with downside protection is a powerful way to help manage that risk.

Legacy planning is more seamless with a unique built-in advantage

Legacy planning is often overlooked in annuity conversations, but innovation is bringing it to the forefront. As my colleague Patti Taylor mentioned in a recent article, "Solving retirement's toughest tradeoff,", “Even the most well-prepared clients can feel conflicted during the income phase of retirement. Many want to leave something behind — for children, grandchildren, or a cause that reflects their values.”

We've watched investors struggle to make this choice for decades. And that's why we've introduced an innovative death benefit solution that allows investors to take a lifetime income stream and  pass on their full investment amount (or account value, if its higher) to their loved ones.1

It's a powerful tool for estate planning that offers efficiency, control and clarity. For financial professionals, this opens up new conversations around multigenerational planning, tax efficiency and values-based investing. Annuities are no longer just about income — they're about impact, helping clients leave a legacy that reflects their goals and priorities.

Innovative strategies help keep the plan on track, even when the market doesn't

Whether it's building reliable and flexible income strategies, redefining growth through active management, or securing a lasting legacy that allows people to retire with comfort, innovative strategies help give you the tools to help your clients stay confident in any market. As you work with clients on their unique challenges, reach out to your Lincoln representative for ideas and assistance at 877-533-0265.

To learn more, please visit Blogs | Lincoln Financial.

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