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Approaching retirement presentation

Approaching retirement presentation Approaching retirement

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Page 1: Approaching retirement presentation Approaching retirement

Approaching retirement presentation

Page 2: Approaching retirement presentation Approaching retirement

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

Page 3: Approaching retirement presentation Approaching retirement

Budgeting

Ten retirement considerations

Take action now

Resources

Recent retirees

How should I approach retirement?

Page 4: Approaching retirement presentation Approaching retirement

4 More planningRecent retirees

Page 5: Approaching retirement presentation Approaching retirement

5 More planningRecent retirees

1 http://hffo.cuna.org/15111/article/1140/html.

Page 6: Approaching retirement presentation Approaching retirement

6 More planningRecent retirees

1

1 http://hffo.cuna.org/15111/article/1140/html.

Page 7: Approaching retirement presentation Approaching retirement

Recent retirees

Longevity Social S

Take action now

Resources

Ten retirement considerations

What do I need to know about retirement?

Page 8: Approaching retirement presentation Approaching 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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Page 9: Approaching retirement presentation Approaching retirement

9 LifestyleTen retirement considerations

3 "Your Retirement Lifestyle," www.kiplinger.com.

78%

2

Page 10: Approaching retirement presentation Approaching retirement

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

Page 11: Approaching retirement presentation Approaching retirement

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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Page 12: Approaching retirement presentation Approaching retirement

12 Income sources Ten retirement considerations

Part-time work

Deferred compensation

Social Security

Pension

[ your company’s plan]

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Page 13: Approaching retirement presentation Approaching retirement

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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Page 14: Approaching retirement presentation Approaching retirement

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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Page 15: Approaching retirement presentation Approaching retirement

15 Social SecurityTen retirement considerations

Full retirement

age

Early retirement

age

Deferredretirement

age

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Page 16: Approaching retirement presentation Approaching retirement

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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Page 17: Approaching retirement presentation Approaching retirement

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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Page 18: Approaching retirement presentation Approaching retirement

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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Page 19: Approaching retirement presentation Approaching retirement

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.

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14

$220,000

Page 21: Approaching retirement presentation Approaching retirement

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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Page 22: Approaching retirement presentation Approaching retirement

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

Page 23: Approaching retirement presentation Approaching retirement

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

Page 24: Approaching retirement presentation Approaching retirement

24 Other factorsTen retirement considerations

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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

Page 25: Approaching retirement presentation Approaching retirement

Recent retirees

Ten retirement considerations

Diversify

Resources

Take action now

What do I need to do?

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Page 26: Approaching retirement presentation Approaching retirement

26 Evaluate risk toleranceTake action now

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Page 27: Approaching retirement presentation Approaching retirement

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.

Page 28: Approaching retirement presentation Approaching retirement

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.

Page 29: Approaching retirement presentation Approaching retirement

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

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31 My Social Security AccountResources

• Set up your own account

• View what you’ve paid into the system

• See your estimated benefits

Page 32: Approaching retirement presentation Approaching retirement

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

Page 34: Approaching retirement presentation Approaching retirement

Access your retirement account

nationwide.com/myretirement

1-800-772-2182