Women and Investing: Health Care and Social Security

Transcription

1 Women and Investing: Health Care and Social Security

2 Women and Healthcare Planning for your future A look at health care in retirement

3 How does mind the gap relate to health care?

4 The retirement concern Women live, on average, five to ten years longer than men 1 Women are 10 times more likely to live to 85 than men 2 Only 26% of women over the age of 75 have a spouse to provide them with care 3 1 Scientific American, Why Women Live Longer Than Men, why-women-live-longer-than-men1/, August, American Association for Long-term Care Insurance, December, U.S. Census Bureau, Current Population Survey, 2014 Annual Social and Economic Supplement.

5 What might health care cost?

6 How is your health care funded? Medicare 62% 4 Medicare / 62% Benefits from previous employer Medigap plans Your savings 12% 13% 62% Private Insurance / 13% Out-of-pocket / 12% VA / 4% Medicaid / 3% Other Private / 3% Other / 2% Tricare / 1% 4 Employee Benefit Research Institute, How Much Does Medicare Cover?, October, 2013.

7 The gap

8 A common misconception You should know: The Affordable Care Act does not cover long-term care expenses Medicare only provides limited long term care coverage for a defined period of time Majority of long-term care falls into the out-of-pocket expense category 38%

9 Long-term care Long-term care is a range of services and support you may need to assist you with basic personal tasks of everyday life Consider a long-term care policy as part of your retirement health care plans

10 Meet Joan { 58-year-old, married woman Two daughters in their 20s Aging parents who need more care

11 Funding your future

12 How do you mind the gap? Health Care Cost Assessment Fact Finder Refine your financial plan for retirement Plan for long-term care Cover any income gaps that may exist with new funding or portfolio changes

13 Health Care and LTC Cost Assessment FOR BROKER/DEALER USE ONLY NOT FOR USE WITH THE PUBLIC 13

14 Health Care and LTC Cost Assessment FOR BROKER/DEALER USE ONLY NOT FOR USE WITH THE PUBLIC 14

15 Let s work together Roberta Eckert: CRPC, CLTC, RICP Vice President: Nationwide Retirement Institute

16 Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value Nationwide is not affiliated with any broker-dealer firms except NISC, Nationwide Securities, LLC and Nationwide Fund Distributors, LLC. Nationwide Investment Services Corporation (NISC), member FINRA. Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company Nationwide NFM-13895AO (08/15)

17 Women and Healthcare NATIONWIDE RETIREMENT INSTITUTE SM The choice of a lifetime A look at Social Security and your retirement

18 Increasing your confidence How comfortable are you with the topic of Social Security? 70% of women are somewhat confident or not at all confident about their knowledge of Social Security. Nationwide Social Security Study, 2014.

19 Planning for tomorrow Key elements of retirement income: Essential income Covers must-have expenses Income should be protected and reliable Target (discretionary) income Covers optional expenses Income is less critical

20 Planning for tomorrow Sources of retirement income: Essential income Social Security Pension Bond portfolio Certificate of deposit Annuity Target (discretionary) income Mutual fund portfolio Annuity Laddered bond portfolio Nontraditional assets

21 Social Security: perception vs. reality The perception: Social Security will cover 54% of retirement expenses 54% Nationwide Social Security Study, 2015.

22 Social Security: perception vs. reality The reality: Social Security makes up 32% of your retirement income 32% LIMRA Retirement Income Reference Book, Sources of Retirement Income study, LIMRA, 2011.

23 Deciding when to file Reduced benefits are available as early as age 62 Delaying the date you file can increase your monthly benefits Fewer than 1 in 5 women file to receive their full benefit at full retirement age (FRA) or later Annual Statistical Supplement to the Social Security Bulletin, 2014.

24 Timing is everything How does when you file affect your primary insurance amount (PIA)? 75% 80% 86% 93% 100% 108% 116% 124% 132% Start SS age In 2015, people born in 1949 will reach 66 No benefit in delaying past 70

25 Timing is everything Meet Tom and Diane a 62-year-old married couple $2,400 Tom s SS benefit at full retirement age $1,300 Diane s SS benefit at full retirement age * Figures as shown represent future value and assume average life expectancy of 83 for men and 86 for women and 2.5% annual cost-of-living adjustments (COLA). $243,738 Cumulative benefit lost by filing early $1,029,654 Cumulative benefit if both file at 62 * $1,273,392 Cumulative benefit if both optimize SS benefits *

26 Benefits for a spouse Eligibility Age 62 Married for at least one year One spouse must file for the other to claim benefits Benefits Up to 50% of spouse s PIA

27 Benefits for a surviving spouse Eligibility Married for at least nine months Benefits can be taken as early as age 60 Currently married or remarried after age 60 (marriage lasted 10 years or more) Benefits Up to 100% of spouse s PIA, including delayed retirement credits earned One-time death benefit Survivor benefits can be received independently of individual benefits

28 Benefits for divorced spouses Eligibility Married for at least 10 years Currently unmarried Ex-spouse does not have to file beyond two years after divorce Benefits Spousal then survivor benefits No impact on ex-spouse s benefits Not subject to the family maximum

29 Simplifying Social Security decisions Nationwide s Social Security 360 Analyzer SM tool Identifies optimal filing methods and allows you to adjust parameters to compare different strategies Provides instructions on how to file Helps you integrate Social Security into your comprehensive retirement income plan These tools may not be approved for use by all firms. Please check with your broker/dealer for access.

30 MANAGING THE SOCIAL SECURITY DISCUSSION Social Security client questionnaire Helps gather relevant client information to prepare a filing strategy comparison Marital status Expected benefit amount Life expectancy Planned retirement date Desired retirement income Retirement goals, concerns, etc. FOR BROKER/DEALER USE ONLY NOT FOR USE WITH THE PUBLIC 30

31 MANAGING THE SOCIAL SECURITY DISCUSSION Cashflow analysis helps identify income gaps Tom and Diane begin claiming at age 70 After Tom passes away, Diane begins her survivor benefit. FOR BROKER/DEALER USE ONLY NOT FOR USE WITH THE PUBLIC 31

32 What s the best filing strategy for you? Roberta Eckert, CRPC, CLTC, RICP Vice President: Nationwide Retirement Institute

33 Important things to keep in mind Nationwide and its representatives don t give tax, legal or investment advice. Please talk with your legal or professional advisor for guidance on your specific situation. Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value All guarantees are subject to the claims-paying ability of the issuing company. And, while they do not guarantee the actual performance of any variable accounts, they do offer a level of protection against investment loss. Nationwide is not affiliated with any broker-dealer firms except NISC, Nationwide Securities, LLC and Nationwide Fund Distributors, LLC. Nationwide Investment Services Corporation (NISC), member FINRA. Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. Social Security 360 Analyzer is a service mark of Nationwide Life Insurance Company Nationwide NFM-14156AO (12/15)