Reduce, retire, relax: Cut the risks and enjoy the retirement you envision

Transcription

1 Reduce, retire, relax: Cut the risks and enjoy the retirement you envision Tom Corner, AVP, Relationship Management

2 What we ll cover Retirement is not a set point in time. Retirement statistics. Some of the risks when planning for retirement. Steps to help reduce these risks.

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4 Three phases of retirement

5 What we ll cover Retirement is not a set point in time. Retirement statistics. Some of the risks when planning for retirement. Steps to help reduce these risks.

6 of Americans are confident in their retirement savings. of Americans expect to work in retirement. of older Americans expect to outlive their savings. of single seniors 65 and older get 90% of their income from Social Security. of retirees don t budget for leisure activities. Source: 10 retirement stats that will blow you away. accessed July 3, 2017.

7 Sources of income in retirement 2% 2% Social Security 5% Asset income 12% 18% 35% Retirement benefits other than Social Security Earnings Veteran's benefits 26% Cash public assistance Noncash benefits Source: Income of the Aged Chartbook accessed July 3, 2017.

8 What we ll cover Retirement is not a set point in time. Retirement statistics. Some of the risks when planning for retirement. Steps to help reduce these risks.

9 Longevity risk 1 Simple Life Expectancy Calculator. Society of Actuaries. Assumes a couple, both age 65 using Social Security 2010 Mortality Tables with 1% mortality improvement. Access July 3, 2017.

10 Living on less income when a spouse passes away Annual income from: Spouse 1 Spouse 2 Social Security $32,000 $16,000 Pension $15,000 $0 Savings $10,000 Total household income = $73,000

11 Continued Annual income from: Spouse 2 Social Security $32,000 Pension $0-$15,000 (if spousal benefit was selected) Savings $10,000 Household income: drops to $42,000-$57,000/year

12 Lack of pensions: Risk of self-funding retirement Source: 2017 IRI Factbook: A Guide to Information, Trends and Data in the Retirement Income Industry. Sixteenth Edition, 2017.

13 Systematic withdrawal risk. What s the right amount to take out? It s a balancing act!

14 Continued Probability: Age High (95%) Initial % Moderate (90%) Initial % Low (80%) Initial % MALE % 3.7% 4.3% % 4.2% 4.9% % 4.7% 5.6% % 5.5% 6.5% FEMALE % 3.5% 3.7% % 3.9% 4.1% % 4.5% 4.5% % 5.2% 5.2% JOINT % 3.4% 3.8% % 3.7% 4.2% % 4.2% 4.8% % 4.9% 5.7% 2017 IRI Factbook: A Guide to Information, Trends and Data in the Retirement Income Industry. Sixteenth Edition, 2017.

15 Healthcare risk Estimated cost of healthcare in retirement: $260,000

16 Inflation risk Year COLA % % % % % % % % % Social Security COLA Compound Annualized Growth Rate: 1.67% % % 1 Social Security Administration: Cost-of-Living Adjustments, accessed July 6, 2017.

17 Inflation risk Source: LA Times. accessed July 3, 2017.

18 Sequence of returns risk

19 Continued

20 What we ll cover Retirement is not a set point in time. Retirement statistics. Some of the risks when planning for retirement. Steps to help reduce these risks.

21 Reducing risks

22 Annuities: a bright idea

23 Questions and next steps Symetra Sales Desk Symetra Life Insurance Company th Avenue NE, Suite 1200 Bellevue, WA, Symetra is a registered service mark of Symetra Life Insurance Company.

24 Important Disclosure Annuities are issued by Symetra Life Insurance Company, th Ave. NE, Suite 1200, Bellevue, WA Not available in all U.S. states or any U.S. territory. In New York, annuities are issued by First Symetra National Life Insurance Company of New York, New York, NY. Mailing address P.O. Box 34690, Seattle, WA, Annuity contracts have terms and limitations for keeping them in force. Please contact your financial professional or insurance producer for complete details. Guarantees and benefits are subject to the claims-paying ability of the insurance company. Products and services vary by distributor. This material is not intended to provide investment, tax or legal advice.