Approaching retirement presentation
Dec 24, 2015
Approaching retirement presentation
Investing involves market risk, including possible loss of principal and possible fluctuations in value. Products may not be available in all states.
Certain funds are only available as investment options in variable life insurance or variable annuity contracts issued by life insurance companies. They are NOT offered or made available to the general public directly.
Before investing, understand that mutual funds are not insured by the FDIC, NCUSIF or any other Federal government agency and are not deposits or obligations of, guaranteed by or insured by the depository institution where offered or any of its affiliates. Mutual funds involve investment risk and may lose value.
The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB, a division of Nationwide Bank. The general distributor for variable products is Nationwide Investment Services Corporation (NISC), member FINRA. The Nationwide Retirement Institute is a division of NISC. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Retirement Institute and On Your Side Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide
PNM-2790AO.2 (05/15)
• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution• Not insured by any federal government agency • May lose value
Budgeting
Ten retirement considerations
Take action now
Resources
Recent retirees
How should I approach retirement?
4 More planningRecent retirees
5 More planningRecent retirees
1 http://hffo.cuna.org/15111/article/1140/html.
6 More planningRecent retirees
1
1 http://hffo.cuna.org/15111/article/1140/html.
Recent retirees
Longevity Social S
Take action now
Resources
Ten retirement considerations
What do I need to know about retirement?
8 LongevityTen retirement considerations
2 http://www.prb.org/pdf06/nia_futureoflifeexpectancy.pdf.
• Life expectancy in the U.S. has increased by 30 years since 19002
• Outliving savings is a top concern for those approaching retirement
• Proper planning helps alleviate fears
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9 LifestyleTen retirement considerations
3 "Your Retirement Lifestyle," www.kiplinger.com.
78%
2
10 LifestyleTen retirement considerations
4 http://www.nytimes.com/2013/09/29/realestate/carrying-debt-after-retirement.html?_r=0.5 10 Ideas to Help with the “What Are You Going to Do When You Retire” Question, TopRetirements.com, http://www.topretirements.com/blog/retirement-
planning-2/10-ideas-to-help-with-the-what-are-you-going-to-do-when-you-retire-question.html, April 2, 2013 (accessed 10/01/2014).
Average mortgage debt is $70,0004
Average of $7,700 per year is spent
on travel5
2
11 TimingTen retirement considerations
6 http://www.transamericacenter.org/docs/default-source/resources/center-research/TCRS2013_SR_fullworker.pdf.7 http://www.census.gov/prod/2013pubs/acsbr11-09.pdf.
• 57% of American workers plan to work past age 656
• 54% plan to work at least part time6
• Currently 30% of 65- to 69-year-olds are employed7
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12 Income sources Ten retirement considerations
Part-time work
Deferred compensation
Social Security
Pension
[ your company’s plan]
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13 Ten retirement considerations Income sources
• Pension plans are available to only 20% of employees8
• Social Security accounts for about 40% of what you’ll need9
• Deferred compensation plans are becoming the largest income source
• 18.5% of Americans over age 65 are working10
8 http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html.9 http://www.ssa.gov/policy/docs/ssb/v68n2/v68n2p1.html.10 http://www.cnbc.com/id/100424018.
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14 Ten retirement considerations Post-employment options
• Leave your money in the plan
• Take a lump-sum distribution
• Roll into an IRA
• Take periodic distributions
• Purchase an annuity
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15 Social SecurityTen retirement considerations
Full retirement
age
Early retirement
age
Deferredretirement
age
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16 Social SecurityTen retirement considerations
• Early retirement lowers benefit payments
• Deferred retirement increases benefit payments
• 40% of people plan to take benefits before age 6411
• 43% plan to take benefits between age 64 and 6911
• 6% plan to take benefits at age 70 or later11
11 http://capricorn.bc.edu/agingandwork/database/browse/facts/fact_record/5631/all.
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17 MedicareTen retirement considerations
12 http://www.medicare.gov/what-medicare-covers/index.html.
Medicare Part A hospital insurance12
Medicare Part B outpatient care12
Medicare Part D supplemental
drug coverage12
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18 MedicareTen retirement considerations
• Purchase a Medicare supplemental plan
• Talk to a Medicare professional
• Work with your employer to extend coverage
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19 Medical expensesTen retirement considerations
8Medicare will likely NOT cover all your needs.Research your options at nationwide.com/myretirement
13 Methodology: Data was collected via an online survey by Harris Interactive on behalf of Nationwide from Jan. 3-19, 2012. The survey was among 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2020 and 625 retired adults ages 65+ having $250,000 or more in household assets. Results were weighted as needed for age, sex,race/ethnicity, education, region, household income and investable assets. Propensity score weighting was also used to adjust for respondents’ propensity to be online. To see the entire survey, visit www.nationwide.com/healthcare.
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20 Medical expensesTen retirement considerations
8
14 Fidelity Consulting Services, 2013. Based on a hypothetical couple retiring at age 65 years or older with average life expectancies (82 male, 85 female).
Estimates are calculated for “average” retirees, but may be more or less depending on actual health status, area, and longevity.
14
14
$220,000
21 Long-term care insuranceTen retirement considerations
9
of people over the age 65will need long-term care.15
15 LTCI‘s Revolutionary Evolution, Nov.1, 2011 Life Insurance Selling.
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22 Long-term care insuranceTen retirement considerations
9
What average nursing home costs are expected to reach per year by
16 Life and Health Advisor, 2010, “Don’t Let Your Clients Get Blindsided by LTC Costs.”
9
2030.16
23 Long-term care insuranceTen retirement considerations
9
17 http://longtermcare.gov/the-basics/what-is-long-term-care.
• Services and support to meet personal needs17
• Stand-alone policies17
• Riders on life insurance policies17
• Pays for medical expenses and other costs17
24 Other factorsTen retirement considerations
10
18 http://www.marketwatch.com/story/top-10-most-desired-retirement-activities.
Social travel is the most desired activity18
Physicalstaying active is part of a healthy retirement
Mentalengage in
stimulating activities
Recent retirees
Ten retirement considerations
Diversify
Resources
Take action now
What do I need to do?
25
26 Evaluate risk toleranceTake action now
1
27 DiversifyTake action now
Diversification spreading your
investments over multiple asset classes
Key to minimizing risks in your
retirement plan account
Diversification and asset allocation do not assure a profit or prevent a loss in a down market.
28 Catch-up contributionsTake action now
Maximum catch-up
contribution for 2015 is
$6,000 19 http://www.forbes.com/sites/ashleaebeling/2013/05/03/playing-catch-up-with-your-401k.
Recent retirees
Ten Retirement Considerations
Take action now
Resources to help you prepare
What resources are available?
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• Helps you determine if you’re on track for retirement
• Gives you realisticideas for planning
• Lets you track progress
• Can be found online at nationwide.com/myretirement
Interactive Retirement PlannerResources
31 My Social Security AccountResources
• Set up your own account
• View what you’ve paid into the system
• See your estimated benefits
32 Health Care Cost AssessmentResources
www.nationwide.com/facts-about-health-care.jsp
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Talk to your plan’s advisor
about putting an action plan into place
Research Medicare, long-term care and
other health care options
Considerhobbies, volunteerism
and other activities
Use the resources available to you
at nationwide.com/myretirement and socialsecurity.gov
Approaching retirement Summary
Access your retirement account
nationwide.com/myretirement
1-800-772-2182