U.S. Bank Small Business Survey Finds More Than One-Third of Gen Z and Millennial Owners Plan to Acquire a Business From a Retiring Owner – But Many Older Owners Aren’t Ready

Succession Gap : Many older owners lack formal succession plans, even as younger generations prepare to take over.

: Many older owners lack formal succession plans, even as younger generations prepare to take over. Economic & Operational Stress : Owners are feeling stress over the economy, inflation, funding issues, and daily tasks —despite recent growth.

: Owners are feeling stress over the economy, inflation, funding issues, and daily tasks —despite recent growth. AI Adoption Rising: Over half are using or planning to use Gen AI, though many feel overwhelmed by tech demands.

U.S. Bank released its third Small Business Perspective survey report today, revealing how owners across the country are responding to an environment defined by rapid change. The nationwide survey of 1,000 small business owners explored how they are navigating challenges ranging from economic stressors to the rise of generative AI, all while remaining focused on long-term growth, succession planning, and leaving a lasting legacy.

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Top 5 use cases small business owners have for Gen AI.

“This year’s survey makes it clear that small business owners are committed to future-proofing their businesses in response to today’s economic climate and rapid technological change,” said Shruti Patel, U.S. Bank’s Chief Product Officer for Business Banking. “From embracing generative AI to responding to shifting economic conditions like tariffs and thinking proactively about succession, owners are serious about the future of their businesses. There is a real opportunity – and responsibility – for financial institutions to show up as strategic partners in helping small businesses navigate what’s next.”

Handing the Reins to the Next Generation

With more than half of U.S. small business owners now over age 55, succession planning is becoming increasingly urgent. While many owners are not yet ready to step away – with only 54% having created a succession plan – new generations are preparing to take their place: more than one-third (36%) of Gen Z and Millennial owners say they plan to acquire a business from a retiring owner.

The report reveals a striking gap between intention and action. While 85% of surveyed participants say they originally became an owner to create something they could pass on, and 84% wanted to create generational wealth for their family, only 54% have a formal succession plan in place.

A growing number of owners (62%) have seen their retirement timelines accelerate in the past five years. But for many, navigating succession is a challenge:

62% find the process overwhelming

56% worry they won’t get a reasonable price for their business when it’s time to sell

53% lack the proper resources or guidance to plan for the future of their business

Owners with strong business performance were more likely to have a succession plan in place: 64% of those with a plan reported significant growth over the past year, compared to 50% of those without a plan.

Nearly 4 in 10 small business owners (37%) say they plan to sell their business in the next 12 months, suggesting how quickly transitions of ownership may be approaching for some businesses. However, retiring business owners are not the only ones looking to sell, with a higher number of Gen Z and Millennial owners (41%) than Boomers and Gen X (33%) saying they plan to sell their business.

While the small business landscape has changed dramatically over the years, the motivations that originally inspired owners still drive them today. Most remain deeply committed to their work: 86% want to continue running their business as long as possible, and 87% are hopeful they’ll leave behind a positive legacy when they eventually step away.

Economic Pressures are Influencing How Owners Operate

The need for small business owners to make long-term plans is reinforced by the day-to-day worries they are facing. Respondents reported their top macroeconomic stressors as:

The economic environment (98%)

Inflation or increased costs of materials / supplies (92%)

Competition (92%)

The ability of consumers to maintain their spending (86%)

Fraud or cybersecurity threats (85%)

Obtaining enough funding to support my business (84%)

Among other stressors small business owners cited, 4 out of 5 (81%) owners felt at least somewhat stressed about tariffs.

Despite these stressors, 96% of owners reported their business as currently successful and 88% saw growth in the past year. To manage pressures and position their businesses for the future, many owners are prioritizing key steps in the year ahead, including focusing on revenue (48%), ensuring enough staff (33%), improving company efficiency and cost-effectiveness (32%), and reacting to the general economic landscape such as inflation and recession risk (29%).

To get a pulse check on the most current sentiment, U.S. Bank conducted a follow-up survey of 500 small business leaders during the month of May. While stress levels on the economic environment were similarly high, two-thirds (66%) said the country’s economy is moving in the right direction, with only 18% saying it’s going in the wrong direction. This sentiment was even stronger among younger business leaders (Gen Z and Millennial), with 74% saying it was moving in the right direction, vs. 52% of leaders from older generations (Gen X and Boomer).

Despite this optimism, a majority (58%) of the leaders expressed at least some concern that tariffs may impact their business operations, and 57% expect their input costs to go up as a result of tariffs with most expecting a cost increase between 1-10%. At the same time, leaders were slightly more likely to anticipate a positive rather than negative impact from tariffs across several business factors – including cost of goods, customer demand, margin profitability, capital investments, and labor/HR – but these expectations were generally modest, with most leaders expressing a neutral or only slightly positive outlook on the potential effects of tariffs.

Small Business Owners are Turning to Gen AI and Digital Tools to Stay Competitive

As small business owners look to create long-term success for their businesses, they are embracing generative AI (Gen AI) and digital tools. Nearly 6 in 10 (57%) are currently using or plan to implement Gen AI solutions in the next year. Among those using it, the top applications include content creation (44%), data analysis and information gathering (41%), and marketing and sales strategies (39%).

The majority of owners using Gen AI have found that adoption doesn’t require a massive investment. Nearly 7 in 10 (68%) Gen AI users report spending less than $50 a month on it, and nearly 1 in 5 (18%) are using free tools or subscriptions. These tools allow users to spend more time on the personal connection they have with their customers (88%).

Still, the rise of AI is not without tension. Over 8 in 10 (81%) report keeping up with technological advancements such as Gen AI is stressful, and 56% worry their business (or products / services) will be replaced by Gen AI or automation.

Beyond AI, digital tools are seen as essential now more than ever. The number of owners who view digital tools as very important or essential jumped a striking 15 percentage points from last year (87% in 2025 vs. 72% in 2024). At the same time, 63% say they’re overwhelmed by the number of tools needed to run their business and 82% say consolidating them is a priority.

Looking at payment methods, nearly half (48%) of owners still report cash as a primary method of in-person payment. However, newer methods of payment are catching up with 42% reporting tap-to-pay as a primary method.

Despite Challenges, Most Owners Would Do It Again

Even amid today’s business challenges, most small business owners remain grounded in their original purpose that inspired them to become entrepreneurs. When asked why they launched their business, 90% say they wanted to be their own boss, 88% cited a desire to control their financial future, and 86% wanted their passions to be part of their work.

Legacy has also played a defining role. More than two-thirds (67%) of owners come from a family of entrepreneurs, and 62% took over a relative’s business to carry on their family legacy. For Gen Z and Millennial entrepreneurs, however, the path to ownership has often been shaped by necessity. More than half (52%) of younger owners say they became business owners because they couldn’t find a job elsewhere, compared to 44% of Gen X and Boomer owners.

When asked if they’d do it all over again, 80% of owners say they’d still start their business today. This confidence is particularly notable given challenges they see in today’s environment. Almost 8 in 10 (79%) say there is greater market competition today than when they started and 70% say that securing funding and capital is more difficult now.

For an in-depth look at insights from U.S. small business owners, please read the full 2025 U.S. Bank Small Business Perspective report.

Methodology

20-minute survey among 1,000 U.S. small business owners with annual revenue of $25 million or less and between two and 99 employees. Fielding for this study was conducted from March 14, 2025 – April 4, 2025, and the margin of error is ±3.1% for the U.S. owners.

Pulse Survey Methodology

10-minute survey conducted online by Morning Consult from May 8 to May 23, 2025, among a national sample of 500 small business leaders. Respondents were decision makers (Director, VP, or C-level) at companies with annual revenues of $25 million or less and between 2 and 99 employees. The margin of error is ±4 percentage points.

About U.S. Bank

U.S. Bancorp, with approximately 70,000 employees and $676 billion in assets as of March 31, 2025, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2025 World’s Most Ethical Companies and one of Fortune’s most admired superregional banks. Learn more at usbank.com/about.

Media Contacts:

Rick Rothacker, U.S. Bank Public Affairs & Communications

richard.rothacker@usbank.com

Anna Christensen, U.S. Bank Public Affairs & Communications

anna.christensen@usbank.com

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A Strategic Initiative to Empower Families and Strengthen Communities

Fort Lauderdale, Florida–(Newsfile Corp. – June 16, 2025) – OptimumBank (NYSE American: OPHC) proudly announces a new partnership with Habitat for Humanity of Broward to provide zero interest mortgage loans to six families facing housing affordability challenges. This collaboration reflects a shared commitment to expanding access to affordable housing, promoting financial security, and strengthening communities in Broward County.

Creating Opportunities Through Homeownership

With housing costs on the rise, many hardworking families striving for homeownership are left with few options. By eliminating interest payments, Optimum Bank’s zero interest mortgage loans help bridge that gap, making homeownership more attainable and sustainable.

The program also includes post-closing education and financial skills training, equipping each family to manage their new responsibilities with confidence and build lasting stability.

“Optimum Bank is honored to partner with Habitat for Humanity,” said Tim Terry, President and CEO of Optimum Bank. “Homeownership is a cornerstone of economic empowerment. We’re proud to support families on their journey to brighter, more secure futures.”

Impacting Six Families and Future Generations

Six families have been selected through Habitat Broward’s thorough screening process. These families will move into safe, affordable homes located in vibrant neighborhoods, creating a pathway to long-term well-being and generational progress.

This opportunity represents a turning point, allowing families facing housing affordability challenges to escape the cycle of renting and build equity for the future.

A Replicable Model for Sustainable Progress

Habitat for Humanity has a proven track record of delivering innovative, community-driven housing solutions. This partnership with Optimum Bank adds a new dimension by combining financial resources with shared values.

“At Habitat for Humanity, our vision is a world where everyone has a decent place to live,” said Nancy Robin, CEO of Habitat for Humanity of Broward. “Through the generous support of Optimum Bank, these six families will attain more than just a home—they will gain the security, stability, and opportunities associated with homeownership. In addition, this infusion of funding allows us to re-invest our funds into the next project immediately.”

Community Involvement Matters

This initiative invites the wider community, including volunteers, businesses, and donors, to play an active role in turning these houses into homes.

The partnership serves as a model for how private companies and nonprofit organizations can join forces to tackle urgent challenges and deliver meaningful, measurable outcomes. Optimum Bank encourages other companies to explore similar initiatives that create lasting social impact.

About OptimumBank

OptimumBank was founded in 2000 in Ft. Lauderdale, Florida. Our customers found a bank that is strongly service oriented with reasonable fees, unseen at larger financial institutions. OptimumBank is committed to supporting economic development and social progress through responsible banking and community partnerships. OptimumBank’s business and financial solutions include: Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking.

About Habitat for Humanity

Habitat for Humanity is a globally recognized nonprofit organization committed to providing affordable housing solutions and fostering inclusive communities. Through volunteer efforts and philanthropic support, the organization enables families to achieve homeownership and long-term stability.

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CHARLOTTE, N.C., June 16, 2025 /PRNewswire/ — Truist Financial Corporation (NYSE: TFC) today announced it has hired Charles Alston as head of its new Nonprofit Hospitals, Higher Education and Government (HHG) banking team to drive focused growth and deepen client relationships.

As part of the Truist Specialized Industries team within the expanded Commercial and Corporate Banking business, HHG serves more than 1,000 clients that includes nonprofit hospitals, colleges and universities, and municipal and government entities. The team offers tailored strategic advice and delivers holistic financial solutions to meet the complex needs of these clients, including public finance and trading, payments, credit and cash management.

“Charles is a proven leader with a deep knowledge of these sectors, and he has a strong record of building successful teams known for innovation and caring for clients,” said Jason Cagle, head of Specialized Industries at Truist. “The HHG team is new in name only as we’ve been serving nonprofit and government clients for decades. We are confident Charles will lead this new focused and dedicated team to accelerate growth across the country.”

Alston has more than three decades of financial services experience with 20 years dedicated to leading coverage of hospitals, higher education, and nonprofits. Most recently Alston served as the market executive for Bank of America’s Healthcare, Higher Education, and Not-for-Profit business covering the Southeast. He brings a diverse leadership background in treasury management, credit products, relationship management, and industry strategy.

He has been a member of the Health Management and Policy Advisory Board at the University of Miami Herbert Business School since 2011, serving as chair from 2016-2021.

Alston has a bachelor’s degree in business administration from the University of North Carolina at Chapel Hill and is a member of the Association of Financial Professionals, the Healthcare Financial Management Association, and holds the Certified Treasury Professional “CTP” designation from the AFP, in addition to other securities licenses.

Alston will be based in Jacksonville, Florida , and will report to Cagle, who was named head of Specialized Industries at Truist earlier this year.

HHG is one of several practices that make up the Specialized Industries team. The teams bring distinct solutions across Association Services (homeowner associations and property managers); Dealer Services (auto); Senior Care; Trustee Management; Mid/Small Cap Sponsors as well as Industry and Corporate Finance advisory.

About Truist

Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina , Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Truist is a top 10 commercial bank with total assets of $536 billion as of March 31, 2025. Truist Bank, Member FDIC. Learn more at Truist.com.

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SOURCE Truist Financial Corporation

When George Coulam decided to retire, he had a problem. He owned the Texas Renaissance Festival — which bills itself as the largest such gathering in America, drawing over 500,000 annual visitors — and he needed to find a successor. Several longtime associates were eager to take over, but Coulam had run the fair for decades; he wanted his pride and joy to land in the right hands. Suitor after suitor put in bids to buy the business, but none felt like the right fit.

Across the US, older business owners are arriving at the same juncture. Over half of small businesses — those with a single owner and fewer than 500 employees — are owned by people over 50. The wealth-management firm NewEdge Wealth has estimated that boomer-owned businesses in the US are worth about $10 trillion. Those boomers can’t retire and enjoy their sunset years until they figure out what to do with their businesses. Can a relative or longtime employee take over? Should they shut down? Or can they sell?

For millennials with the entrepreneurial bug, this boomer retirement bomb could be a boon. As they enter their prime wealth-building years, many are anxious about how they’ll save up for retirement; in a turbulent housing market, buying an existing business offers a tantalizing opportunity. The market-research firm Forrester found in a survey it conducted last year that 64% of people buying businesses were millennials or younger. Sure, many small businesses aren’t glamorous — think dental practices or accounting firms — and they involve long hours and unpredictable market forces. But they might just be a better pathway to retirement than building a business from scratch.

Private-equity firms have long seen the wisdom in acquiring small businesses. Why should they be the only ones reaping the fruits of boomer labor?

In the late 1990s, Nancy Forster-Holt, an accountant at Ernst & Young, was transferred from Sacramento, California, to Maine. She fell in love with the state and her now-husband, Steve Holt. They decided to buy a business together. Since she had experience as a chief financial officer and he was an engineer, they focused on manufacturing companies. They soon found Shaw & Tenney, a century-and-a-half-old manufacturer of wooden paddles and oars in Orono. Before the Holts bought it in 2003, Shaw & Tenney had had only two other owners: the Tenney family, which operated it until 1978, and Paul and Helen Reagan.

When they decided to retire two years ago, the Holts thought their children might want to take over. But no one showed any interest. “They all grew up in it and worked in it,” Forster-Holt, who’s also a clinical associate professor at the University of Rhode Island’s business school, told me. “Our last one graduated in 2022, and he’s a food scientist, and we’re a manufacturer of oars and paddles.” The couple realized they had to sell, and they started marketing the company while planning the graduation party.

That’s when Jennifer and Neil Gutekunst came along. When they acquired Shaw & Tenney in 2023, they had two other small businesses under their belt. They took what the Holts built — a recognized brand, equipment, a highly skilled workforce, and customer relationships — and ran with it.

“The businesses we purchased all had cash day one,” Neil Gutekunst said. Neither of the Gutekunsts had a sales background, but the three companies they purchased had strong customer bases and solid reputations. All they had to do was keep things running.

The US Small Business Administration said in July that there were nearly 35 million small businesses in the US. The vast majority of those, 82%, had no employees other than the owner, meaning they probably wouldn’t make sense to sell. But each year, about 65,000 of the remaining chunk of businesses are listed on BizBuySell, an online listing service of businesses for sale.

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Edie Ellis, who runs a consulting firm in Chicago and has advised industrial companies on acquisitions, said the peak of small-business sales began when baby boomers started to turn 60, in about 2006. Many owners found that their children didn’t want to take over, so they looked for buyers. The kids of small-business owners “run the opposite direction, because they saw the lifestyle,” Ellis said. “They saw that mom and dad worked 24/7, they didn’t have a weekend off, you know? They don’t want to do that.”

Data from BizBuySell indicates that sales of small businesses have been lower since the 2006 peak and dipped during the pandemic, but quarterly transaction volume has largely recovered from 2020 and has held steady. In the second quarter of this year, BizBuySell had listings for over 35,000 businesses with a median asking price of $395,000 and a median revenue of over $700,000 — meanwhile, in the housing market, the median home price recently hit $412,000. Demand for these businesses is growing, pushing the median sales price up 25% over last year. While not all of these companies will be a good investment, the right venture could offer an edge over more traditional wealth-building routes.

The upside of buying an existing small business, besides inheriting foundational elements — a brand, suppliers, systems, and customers — is that financing an acquisition is often easier than financing a brand-new business. You don’t need to have hundreds of thousands in cash on hand to take advantage. In some cases, sellers are willing to assist in financing because they want the business out of their hands. Some will accept deferred compensation or a share of future earnings as a way to lessen the up-front cost. Buyers with good credit can also borrow money through the Small Business Administration.

Existing companies often have assets that can help make financing easier. If the business owns land, buildings, or equipment, that can serve as collateral for a bank loan. Plus, with revenue already coming in the door, lenders know they won’t have to wait to receive payment.

You come to work and you’ve got your to-do list, and a truck has hit your building, and now your day is something completely different. Do you have the temperament for that?

Of course, there are some logistical challenges in finding the right business — fewer than a quarter of the businesses listed on BizBuySell sell in a given year. For one thing, great small businesses aren’t always in places where people want to move. Dave Specht, the director of the Drucker School Global Family Business Institute at Claremont Graduate University, told me that the situation is compounded when people in small towns don’t want to talk to their neighbors about their plans for their businesses. “There’s great secrecy around the timing of transitions and things like that,” Specht, who lives in a small town in Washington, said. Often, potential buyers end up looking elsewhere. “They go to a larger town or a larger city because they just don’t know.”

Some businesses need a buyer with a combination of skills that isn’t easy to find. Some have real estate that’s worth more than the rest of the assets. And some are “lifestyle companies,” such as bookstores, yarn stores, and other Main Street businesses, that don’t generate much profit beyond the owner’s small salary.

Other businesses might have hidden problems, Ellis told me. “Have they been paying their bills? Have they been paying the IRS? You don’t know what you don’t know,” she said.

The challenges don’t stop once you’ve made the purchase. Fewer than two-thirds of small businesses in the US in 2022 were profitable, and over a million businesses of all sizes close each year. “You get people that come up from Wall Street and they want to buy a bed-and-breakfast in Maine because they’ve always loved Maine,” Forster-Holt said. “But guess what? They’re working 24/7, 365, helping other people enjoy Maine.”

She’s noticed that people with experience working in corporations sometimes struggle with the flat hierarchy and ever-changing priorities of a small business. “You come to work and you’ve got your to-do list, and a truck has hit your building, and now your day is something completely different,” she said. “Do you have the temperament for that?”

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The Holts found that they did. “I loved working there,” Forster-Holt told me. And those who can roll with a little bit of upheaval can reap the financial upsides.

Private-equity firms are certainly familiar with those upsides. The American Investment Council reported that 85% of private-equity investments in 2022 were small businesses. Citing the data provider Preqin, PwC recently reported that, as of the end of May, private equity firms had $1 trillion in liquid assets that were looking for investments. These companies are interested in small businesses that operate similarly in many markets and can be rolled up together, such as plumbing or HVAC companies.

“Private equity is smart in targeting family businesses,” Specht told me. “Many of them are great businesses.” Fortunately for millennial buyers, many family owners would prefer not to deal with Wall Street.

In 2022, Dinkel’s Bakery, a beloved Chicago institution, closed after a century in business. Norm Dinkel, the third-generation owner, wanted to retire, and he couldn’t find a buyer who also wanted to operate the business. Anyone fortunate enough to have had a Dinkel’s chocolate doughnut or fresh strawberry paczki knows the loss.

Traditionally, small businesses were family businesses, and the eldest male child was expected to take it over when the patriarch was ready to step down. That got Dinkel’s through a hundred years of operation. Many small-business owners want to keep the company in the family, said Brian Brogan, who works as a wealth advisor to family-business owners and teaches in the family-business program at Saint Joseph’s University in Pennsylvania. If that isn’t an option, they look for someone they can trust to carry on the business.

Even if you can’t plan on receiving an inheritance, you can create one for yourself (and your own children).

Coulam, the owner of the Texas Renaissance Festival, is slightly older than the average boomer business owner — he’s entering his late 80s. But even he hasn’t found a suitable buyer. His succession search, which was documented in the recent HBO series “Ren Faire,” highlights the difficulty of passing along a business someone spent their whole life building. With small businesses especially, it’s not just about the numbers — it’s a very personal decision.

Still, for buyers able to find the right match, snatching up an existing business could be a smart move. For the Gutekunsts, one acquisition intended as a lifestyle change has turned into a collection of businesses built around southern Maine’s deep tradition of woodcrafting. “It’s fun,” Jennifer Gutekunst tells me. It also beats not having a satisfying retirement plan.

Last year I wrote about the myth of the “Great Boomer Wealth Transfer” — about how most boomers don’t have many assets to pass along, and those that do are likely to get eaten up by the high cost of elder care. But even if you can’t plan on receiving an inheritance, you can create one for yourself (and your own children). Buying up small businesses allows people without wealthy boomer parents to cash in on the trillions of dollars of wealth the generation is sitting on.

Ann C. Logue is a writer specializing in business and finance. She lives in Chicago.

New fund offers investors opportunities for long-term growth blending active and passive investment strategies

RADNOR, Pa. –(BUSINESS WIRE)– Lincoln Financial (NYSE: LNC) announced today the launch of LVIP American Funds Vanguard Active Passive Growth Fund, available exclusively within American Legacy® and Lincoln Investor Advantage® variable annuities. The new fund combines the strengths of two leading investment managers – Capital Group and Vanguard – to offer investors opportunities for diversified, long-term growth with a strategic blend of active and passive strategies through a Lincoln variable annuity.

This new fund launches as 73% of financial advisors agree or strongly agree that active and passive investments complement each other; 72% believe that, during volatile markets, active management can offer downside risk protection through tactical trading.1

“Lincoln continues to enhance its variable annuity products to help financial professionals meet the needs of their clients. With market volatility top of mind, the actively managed portion of the hybrid fund helps make client portfolios more agile and resilient,” said Tim Seifert, SVP, Head of Retirement Solutions Distribution at Lincoln Financial. “Variable annuities can be a powerful tool for helping clients grow their future retirement income, and this new fund offers another innovative strategy to help investors reach their goals.”

The fund aims to limit downside risk and capture upside growth by seeking opportunities beyond index weighting. Capital Group’s active investing approach strives to capitalize on markets in constant motion to deliver above-average risk-adjusted results over the long term. As a passive complement, Vanguard’s index exchange-traded funds (ETFs) seek to provide broadly diversified market exposure at low cost. The strategic allocation of the fund is managed by Lincoln .

“Lincoln has brought together Capital Group and Vanguard to offer one powerful strategy for diversified growth through a Lincoln variable annuity,” said Ben Richer, SVP, Head of Funds Management and Chief Operating Officer, Lincoln Financial Investments. “Our dynamic approach to managing and monitoring the fund will allow us to position it for long-term success. We look forward to building on our decades-long relationships with both firms.”

Capital Group, home of American Funds, is one of the world’s largest and most experienced active mutual fund managers with $2 .8T under management.2 Vanguard, an indexing pioneer, is one of the world’s leading investment management companies, offering a broad range of actively managed and index products.

Lincoln variable annuities offer a variety of investment options, features and benefits, for an additional cost, to help investors protect and grow their lifetime retirement income. For more information on Lincoln annuities, visit: https://www.lincolnfinancial.com/annuities

For more information on LVIP American Funds Vanguard Active Passive Growth Fund: https://visit.lfg.com/FMM-LAVAP-FLI001

All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 877-533-5630 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.

Lincoln variable annuities and American Legacy® variable annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN , and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York , nor is it authorized to do so.

Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York , Syracuse, NY , and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.

About Lincoln Financial

Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2024, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of March 31, 2025, the company had $312 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA. , Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

Sources

1Cerulli Associates: U.S. Product Development 2024

2As of 12/31/24. Morningstar.

LCN-7954446-050925

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Media Contact

Mallory Horshaw

Lincoln Financial

media@lfg.com

Source: Lincoln Financial