Planning for retirement What women should know

Transcription

1 Planning for retirement What women should know Kiley Kunkler Wells Fargo Channel Finance

2 Today s agenda What retirement means Considerations and challenges Retirement realities Wisdom for all ages

3 What does retirement mean to you? C0nsiderations and challenges

4 Picture your retirement Where will you live? Have you shared your plans? What do you want to do? How will you stay busy or engaged? What makes you happy?

5 My Retirement 5

6 Your retirement, your way Volunteer Travel Go back to school Work part-time Start a new career Spend more time with family

7 C0nsiderations and challenges

8 Women are a powerful force Account for 51% of all people employed in management and professional occupations 1 Start twice as many business as men 2 Represent 57% enrolled in college 3 Earn the majority of master s degrees 3 Make majority of household and consumer spending decisions 4 1 Bureau of Labor Statistics, Women in the Labor Force: A Databook (2012 Edition). 2 David Bach, Women & Retirement: Investing for the Life You Want, June, American Council on Education, Gender Equity in Higher Education: Wells Fargo Women and Retirement Research Study, 2011.

9 9 Retirement is a women s issue Source: Fidelity Investments Money FIT Women Study, February 2015

10 Taking care of children and parents Half of older Americans expect to support aging parents and adult children 1 Typical Sandwich Generation member is a 48-year-old woman 2 Women leave the workforce for an average of 12 years to care for children or parents 3 1 SunAmerica Financial Group and Age Wave, Retirement Re-Set Study, American Association of Retired Persons, The Sandwich Generation: You are not alone, June 28, U.S.News & World Report, The Biggest Retirement Challenges for Women, August 6, 2012.

11 Retirement realities

12 Retirement is a women s issue COMPARED TO MEN Typically make less money Have significantly less retirement savings Are less likely to have a pension plan Have longer life spans, which may result in: Higher health care expenses Greater chance of needing long-term care

13 How much have you saved? Most working women estimate they will need at least $250,000 $25,000 But most workers have saved less than... 62% The majority say they could reasonably save $25 more per week for retirement. Employee Benefit Research Institute, Retirement Confidence Survey.

14 How much will you need? You may need about 80% of your pre-retirement income on an annual basis Dependent on expenses and lifestyle in retirement May come from Social Security, retirement accounts, savings and investments, working Don t forget about inflation

15 Older women and Social Security $12,188 Average annual Social Security benefit 3 in 10 Social Security is virtually the only source of income 2.6 million Living in poverty (more than twice the number of men) 1 Social Security Administration, Social Security is Important to Women, February Social Security Administration, Income of the Population 55 or Older, 2010 (March 2012). 3 NWLC, Insecure and Unequal: Poverty and Income Among Women and Families, (September 2013).

16 Know your retirement savings goal The information generated by the Calculator and any information provided by employees and representatives of Wells Fargo is for educational purposes only and does not constitute investment, financial, tax, or legal advice. In making the Calculator available for your use, Wells Fargo is not acting as your fiduciary or advisor. Please contact an investment, financial, tax, or legal advisor regarding your specific needs and situation.

17 Start with your retirement plan

18 Build strength through your retirement plan Benefit now Build savings to achieve your goals Take advantage of time through taxdeferred compounding Develop a diversified investment portfolio Benefit later Achieve your goals Live to enjoy the things you ve been working hard for Enjoy the retirement you envisioned

19 19 The Importance of Staying Invested

20 Learn your investor style by taking a quiz Risk profiles/risk quizzes are intended to provide a general indication of your current investment profile and do not constitute investment advice. There may be other factors specific to your situation that are not considered. Your investment risk tolerance may change over time, and you should revisit your situation from time to time to determine if a selected portfolio is still appropriate for your situation. These asset allocation models are based on generally accepted investment theories that take into account historic returns of asset classes over defined periods of time. These models are intended to provide you with general information that may be helpful as you consider your investment options. They are in no way intended to offer advice about which investments to choose or how much to allocate to any particular investment option in the plan. When applying the models to your own situation, you should consider your other income, assets, and investments (e.g., savings accounts, equity in a home, IRA and other retirement investments).

21 Use your resources Visit your plan s website Use a financial advisor Use online resources and tools

22 Wisdom for all ages

23 Establish healthy habits Determine retirement savings goal Enroll in your retirement plan at work Work toward saving at least 10% of your income Consider opening a Roth IRA to save even more Create a budget Reduce debt Build an emergency fund 20s 30s

24 Stay on track Review your retirement income goal Increase your contributions Contribute to your IRA 40s Review your asset allocation and rebalance as needed Review your insurance needs Create/update will and related estate documents Reduce debt

25 Focus on what lies ahead Review and update your retirement plan Make catch-up contributions to retirement accounts 50s Review your asset allocation Consolidate your retirement accounts 60s Have a plan for withdrawing savings Forecast what your expenses will be in retirement Review your insurance coverage Review wills and estate documents

26 Knowledge is power Beyond Today SM Women's Institute for a Secure Retirement Social Security Administration AARP s Decide. Create. Share. SM Strategies for Women wellsfargo.com/beyondtoday wiserwomen.org ssa.gov aarp.org/decide wellsfargo.com/goals-retirement Links to third-party sites are provided for your convenience only. Wells Fargo neither endorses, monitors, nor guarantees the accuracy of information of third-party websites. Third-party websites may not follow the same privacy, security, or accessibility standards as Wells Fargo's website. Wells Fargo is not responsible for the security, content, or availability of third-party websites or any reliance thereon.

27 Get help with your decisions Partner with a financial professional, who can: Help create an action plan Discuss options for reaching your retirement goals Help develop a contingency plan in case your plans change Evaluate investment approaches Review and assess your retirement goals regularly

28 Take charge Decide what you want to do Develop a plan to make it happen Be involved and stay involved Don t be afraid of investing Plan for contingencies

29 Thank you Recordkeeping, trustee and/or custody services are provided by Wells Fargo Institutional Retirement and Trust, a business unit of Wells Fargo Bank, N.A. This information and any information provided by employees and representatives of Wells Fargo Bank N.A. and its affiliates is intended to constitute investment education under U.S. Department of Labor guidance and does not constitute investment advice under the Employee Retirement Income Security Act of Neither Wells Fargo nor any of its affiliates, including employees and representatives, may provide investment advice to any participant or beneficiary regarding the investment of assets in an employer sponsored retirement plan. Please contact an investment, financial, tax, or legal advisor regarding your specific needs and situation. Diversification and asset allocation do not assure or guarantee better performance and cannot eliminate the risk of investment losses Wells Fargo Bank, N.A. All rights reserved. 1-14