Producer Guide: Conducting Retirement Readiness Reviews. etirement. For Producer Use Only READINESS REVIEW

Transcription

1 Producer Guide: Conducting Retirement Readiness Reviews For Producer Use nly etirement READINESS REVIEW

2 Table of Contents Retirement Reviews 1 Why Conduct Regular Retirement Reviews? 2 Getting Started: Targeting Clients 3-4 Step 1: Identify Clients 5 Step 2: Set Appointments 5 Step 3: Meet with Clients and Review bjectives 6-7 Step 4: Evaluate and Create a Recommended Plan 7-8 Step 5: Meet with Clients to Review Plan 8 Step 6: Implement Plan and Follow-up Regularly 9 Appendix: Retirement Planning Resource Guide 10-15

3 Retirement Readiness Reviews Building retirement reviews into your practice can help put clients of all ages on the right track and strengthen your relationships. Today, retirement is a subject that s become relevant to clients of any age. Starting in their twenties, individuals are beginning to realize that savings will play a major role in their future plans. Decades later, as retirement becomes a more tangible reality, many wonder if their employer-sponsored retirement plans, combined with Social Security and Medicare, will be enough to retire on. For Baby Boomers, planning for retirement is already a top priority but is often impacted by life changes such as divorce, exiting the workforce, or caring for others. Do you hold regular retirement reviews with your clients? If not, consider making it part of your practice. For clients at any stage, a retirement review is not only helpful, it can help you build stronger, more lasting relationships not only with your immediate clients, but potentially with those who care about them most their children, grandchildren, or other family members. A retirement review will become a natural offshoot of your overall financial reviews and can take place during an annual review, or separately. Retirement reviews also give you an opportunity to talk about goals for the future rather than products. While the discussion often leads to sales opportunities, many clients lack a basic understanding about how to adequately save for retirement or how much it will eventually cost. Some clients may also be hesitant to meet with a financial professional for fear of feeling pressured to make buying decisions. ften, a comprehensive review can help motivate clients to save and invest more. It can also lead to professional relationships with other trusted advisors. 1

4 Why Conduct Regular Retirement Reviews? Reason #1: Your Clients Will Benefit. It s estimated that people with a formal retirement plan save an average of three times more than those without. 1 n average about 8,000 Baby Boomers will turn 65 each day for the next 15 years. 2 Experts recommend having at least 70% to 90% of pre-retirement income annually to retire. When starting early, clients benefit from compound interest. Reason #2: Your Practice Will Benefit. You ll increase client confidence and encourage loyalty. You ll be more likely to retain your existing book of business if you continually review current plans with your clients and remind them how they are on track to meet their goals. It gives you the opportunity to uncover other investable assets. It opens the door for potential life insurance and annuity sales. It can lead to additional referrals. Getting Started: Targeting Clients If you re wondering which clients you should target for a Retirement Review, it may be easiest to segment your clients into the following groups: 30 to 40 years from retirement This can be a challenging group to engage, because for the majority, retirement will not seem relevant. However, this is actually the best time to start a dialogue about more holistic planning so they can begin making financial decisions with retirement in mind. Many will be contributing to a 401(k) but otherwise may not be disciplined when it comes to protection planning, saving and investing. Fortunately, you have the opportunity to change that, and also to build lasting relationships, because most likely this age group has not yet developed a relationship with a financial advisor. 1 Wells Fargo, Middle-Class Retirement Survey,

5 Getting Started: Targeting Clients n 3 ways to begin the retirement conversation: 1. The power of starting early can make a significant difference in saving for retirement. Here s an example of how starting early can make a big impact: If a client starting saving a $100 a month at age 22 instead of waiting until age 33, the difference at age 65 would be $185, Did you know that a $50,000 annual income becomes worth about half that amount in 20 years, due to inflation? 3. Unfortunately, pension plans and Social Security won t be able to sustain you in retirement as they did your parents and grandparents. This makes it crucial to prepare early. In fact, if you were to ask your parents what they might have done differently to prepare for retirement, they d probably tell you they would have started planning earlier. 15 to 29 years from retirement While not yet nearing retirement, this group is in its prime earning years with lots of financial concerns. They re likely to have children heading off to college, multiple employer retirement plans that need consolidating, and are good candidates for permanent life insurance if they don t already own it. Most will know they need to plan for retirement but just haven t been motivated. Until now, that is. n 3 ways to begin the retirement conversation: 1. Did you know that when a couple reaches age 65, at least one spouse has a 63% chance of living to age 90? 4 2. Did you know Social Security only provides 36% of the total income of those 65 and up? 5 Where will the other 64% come from? 3. What if you were suddenly forced to retire early? What would your back-up plan be? nly 44 percent of workers report they have tried to calculate how much money they will need to save for retirement Retirement Confidence Survey, ebri.org 3 This is a hypothetical illustration of mathematical principles and does not predict or project the performance of a particular investment or investment strategy. Assumes a 7% annual rate of return compounded monthly. 4 Annuity 2000 Mortality Table 5 Social Security Administration, Fast Facts & Figures About Social Security,

6 Getting Started: Targeting Clients Consider the Unique Needs of Women Women face additional challenges, so it s important they plan and save even more for retirement as women: n LIVE an average of 5 years longer than men 6 n AVERAGE 12 years out of the workforce to care for children and parents resulting in less savings in retirement plans or IRAs 7 n RECEIVE less income, which impacts their Social Security benefits n WRKING 20+ years has likely resulted in traditional wage gaps compared to men. 8 CNVERSATIN STARTER: Be sure to address the needs of spouses who have stepped out of the workforce. For every year a women stays home caring for a child, she must work 5 years to recover lost income.* Source: Employee Benefit Research Institute Retirement Security Projection Model, to 14 Years from retirement Above all, these clients referred to as Baby Boomers, will want to know when, or if, it s possible for them to retire financially. Consolidating assets and looking for non-taxable sources of income will be top of mind. They ll also need to make informed decisions about Social Security and Medicare that may greatly impact their future. At this stage, divorces, widowhood, blended families and other life changes could also be creating new planning needs. While helping your clients achieve their retirement goals, look for opportunities to form relationships with the next generation of family members. n 3 ways to begin the retirement conversation: 1. How confident are you at this stage that you ll be able to afford to retire? 2. Do you know that the average 65 year-old couple will need $260,000 to cover healthcare costs in retirement (not including long-term care costs)? 9 3. Are you aware that your life insurance policy can help supplement your spouse s retirement if you die first at a time when pensions, Social Security, and other benefits may decrease? The age at which workers expect to retire is slowly rising. n In 1991, just 11 percent of workers expected to retire after age 65. n In 2013, 36 percent of workers expect to wait until after age 65 to retire, and 7 percent don t plan to retire at all Retirement Confidence Survey, ebri.org 6 Annuity 2000 Mortality Table 7 Department of Health & Human Services Administration on Aging, National Women s Law Center, Employee Benefit Research Institute, 2010

7 Step 1: Identify Clients Step 2: Set Appointments Step 1: Identify Clients Focus first on the clients you feel would benefit most from a retirement review. Perhaps starting with clients that are closer to retirement (5 to 15 years out) using a Social Security analysis using Penn Mutual s Explorer Tool as a free offer. Penn Mutual has several Smartffice Dynamic Reports that can be a helpful resource to segment clients within your book of business. Then, strive to set two or three appointments a week from the group you ve identified. 1. Sign into Smartffice through Producers Place at 2. Click on Reports on the left hand side menu 3. Click on Dynamic Reports 4. In the Keywords Box, select Retirement Readiness from the drop down box. Click Search 5. There are three reports for this program. Click on the name of the reports to run them. General Retirement Readiness: Identifies clients who have never had a review or have not had a review in the last 6 months. Social Security: Identifies clients between ages 50 to 67 Starting Early: Identifies clients between ages 15 to 35 Contact Practice Management with questions at , option 5, opt 2. f course, it s important to connect with all of your clients on a regular basis to help determine if their financial needs are changing. Staying in touch consistently also makes it easier to ask your existing clients for referrals that may lead to new client relationships Step 2: Set Appointments For best results, consider requesting the review appointment through a combination of approaches such as , postcards/letters, and phone calls. In most cases, you ll need to contact prospects or clients multiple times before they take action. nce the appointment is scheduled, it s wise to send an or a confirmation letter, such as the compliance-approved version available through Penn Mutual: Pre-Meeting Reminder Letter. Use this letter to stress the importance of this meeting and to remind clients to bring key information to ensure a successful meeting, such as: Last two (2) years tax returns Most recent 401(k) statement(s) IRA statements Most recent mutual fund statement(s) Brokerage account statements Money market; savings; CD statements Current social security statement (can be obtained by creating an account at gov/myaccount myaccount Most recent pay stub Completed monthly budget worksheet Copies of any outstanding credit card balances Most recent mortgage statement Real estate property tax bills Employee benefit booklet Current Will and Trust documents Account statement for pension plan Stock option certificates Homeowners policy and latest bill Life Insurance policies Annuity contract(s) Long Term Care policy Disability policy Driver s License CNVERSATIN STARTER: Social Security provides only 36% of the total income of Americans aged 65 and older, with the other 64% of retirement income coming from other sources. Social Security Administration, Fast Facts & Figures About Social Security,

8 Step 3: Meet with Clients and Review bjectives See the Appendix for readily available tools you can use with clients. Ways to Prepare for Reviews n SEND a confirmation to client with a retirement document checklist. n SUBMIT your request for in-force illustrations on all life policies you manage to INFRCE (on utlook) or to inforce@pennmutual.com. Allow at least 5 business days for your request to be processed. n REVIEW client files and annual statements in advance. n SECURE any meeting resources needed. n PREPARE an agenda to keep the meeting on point and manage client expectations. n PLAN T ASK for referrals or recommendations CNVERSATIN STARTER: Did you know you can maximize Social Security benefits by using the cash value life insurance to bridge the income gap until you start taking Social Security? Step 3: Meet with Clients and Review bjectives Identify what clients want to achieve out of their retirement. The Retirement Readiness Fact Finder (T3555) can help you talk with clients, providing probing questions that can guide you through this exercise. For some, thinking about what the future may look like and defining clear objectives at this stage can present a challenge. In addition, identifying future expenses and income is another difficult, yet very important task that clients need to complete. The Fact Finder contains a worksheet which makes this process simpler. Part of the fact finding process should also include a discussion about your client s legacy goals, and whether they wish to have money designated to certain charities or left to family members. ften, clients are reluctant to spend retirement assets so they can leave money to heirs. Learning about their estate planning objectives and reviewing those, perhaps at another time, will help create a plan that encompasses all their goals. There are also a variety of selling systems that may help you with the fact finding process, such as LEAP, Circle of Wealth and Financial Profiles. Regardless of which system if any you use, they all have different features that can help with the steps outlined here. Collecting Social Security earlier than full retirement age can decrease your benefits by as much as 30%. Social Security Administration, Your Retirement Benefit: How it is Figured,

9 Step 4: Evaluate and Create Recommended Plan Topics to cover during the review Based on previous discussions with your clients, and keeping their unique needs and goals in mind, you may want to cover some of the following topics during the review process: How to maximize Social Security benefits Diversifying portfolios to include a mix of tax-free and taxable income Maximizing pension benefits CNVERSATIN STARTERS: Did you know that the death benefit of permanent life insurance can be a more tax-efficient way to leave money to heirs while still enjoying and spending in retirement? The use of life insurance to protect your assets while providing possibilities Tax-efficient strategies for accessing cash The risk of living too long and outlasting retirement resources Inflation and its affect on purchasing power The likelihood of rising healthcare costs The costs and concerns associated with long-term care utliving a spouse, especially when death is untimely Step 4: Evaluate and Create a Recommended Plan Your goal at this point is to take what you ve heard from the client and create a plan that efficiently and accurately meets the desired objectives. As part of the fact finding process, you ll find most people have an income shortfall. With that in mind, create a plan that deals with the need for additional income in the future, taking into account each client s individual expectations, growth needs, and risk tolerance. Consider strategies to address income gaps, such as: Saving more and/or spending less in retirement Saving more efficiently with tax-advantaged plans such as life insurance and annuities Adding other retirement savings options, such as IRAs or 401(k)s rganizing and consolidating current retirement vehicles Working longer than intended or working part-time Deferring Social Security Taking income from other sources Tapping home equity or reverse mortgages 53% of households are at risk of not maintaining their standard of living in retirement. National Retirement Risk Index, Center for Retirement Research at Boston College,

10 Step 5: Meet with Clients to Review Plan CNVERSATIN STARTERS: Permanent life insurance, the core of any solid financial plan, offers flexibility and access, tax advantages along with cash value that can make any retirement strategy stronger. Take the details you heard in the fact finding session, including the existing financial vehicles of your client, and compile into one presentation. Most selling system software generates client summary reports you may also want to incorporate. nly include the reports that are most relevant based on your individual discussion with each client or couple. Items to consider in this presentation include a summary of objectives and future goals, statement of net worth, asset breakdown, current cash flow and future cash flow, potential issues, solutions, and finally a plan of action. If you don t have access to selling system software, take advantage of the Penn Mutual Retirement Readiness Review Template (T3562) to summarize goals and objectives and outline a recommended action plan. There are many things to analyze at this point, but rather than tackling it all, start with what you feel is most important to your client. When faced with too much information, clients tend to avoid taking any action. This is why it s important to break the plan down into smaller and more actionable steps. Step 5: Meet with Clients to Review Plan Don t let too much time lapse between your initial fact finding meeting and the recommendation meeting. When working with a couple, be sure that the spouse is also present at this meeting to get all the facts, remain engaged, and gain consensus. As you prepare for this meeting, identify areas that clients might want to discuss in detail or anticipate where the discussion might get emotional. Provide an agenda so things stay on track and there is enough time allocated for questions. During the recommendation meeting: Start by reviewing the key points identified during fact finding in order to refresh the client and ensure everyone is on the same page. When presenting the action plan, be sure to tie the recommendations back to the goals and objectives. This will help reinforce why you are making the recommendations. Close the meeting by agreeing on next steps and scheduling another meeting if necessary. This is also a good time to pivot to other planning areas that may need to be addressed, such as estate planning or college funding. nce the meeting has concluded, send your clients a summary of the discussion. Thanks to inflation, the equivalent of $50,000/year in retirement income today, in 20 years is $101,640/year. The U.S. Bureau of Labor Statistics Not seasonally adjusted 8

11 Step 6: Implement Plan and Follow-up Regularly Step 6: Implement Plan and Follow-up Regularly After your clients have agreed to the recommended plan, go ahead and begin implementation. Make it as easy as possible for your client to follow through; for example, group documents together when ing and offer a suggested timeline for responses. Schedule regular follow up meetings How frequently you meet with your clients should depend on the amount of assets under management; for example, quarterly meetings are recommended for clients with a sizable amount, while annual meetings are fine for more basic needs. TIP: Keep things moving! Always keep your clients informed of next steps by . Also, be sure to schedule your next follow-up appointment at the end of each client meeting. Before each appointment, ask yourself: 1. Is the fact finder information still correct, or could goals, etc. have changed? 2. Is the client following the plan and implementing as discussed? 3. Is the client exposed to an unanticipated level of risky market conditions, longevity, inflation, long term care, etc? 4. How has the future expenses and income equation changed? Is the client still on track to close the gap? 5. Is the portfolio performance meeting expectations? During the appointment, determine if there have been any changes in lifestyle that could necessitate adjustments to the plan. Find out about changes in life events such as: Job change Marriage or divorce Birth or adoption of children Starting a business Care for aging parent, etc. If needed, recommend strategies that could improve portfolio performance: Make sure all assets are working hard and are coordinated so that they are taking full advantage of all tax and expense efficiencies. Rebalance the client s portfolio to ensure that the risk level of the portfolio is appropriate for the client s risk tolerance. Make sure that the client has a portfolio that is protected while generating the highest rate of return possible. Select specific assets (e.g., stocks or stock mutual funds) within asset classes. Review life insurance funding options. nce you ve implemented a plan for your clients, regardless of which items they move forward with, you ve just provided a very valuable service. nce you determine that your client s needs are being met, establish a timeframe to meet again for your next Retirement Review. Don t forget to ask for recommendations A satisfied client is a great resource for recommendations. nce you ve become a trusted advisor confident that your client feels his or her needs have been met you have an excellent opportunity to ask for referrals so others may benefit from the services you provide. 9

12 For Producer Use nly Prepared For: Billy Penn Prepared By: Robyn D June 13, 2012 Personal Information Name Address Address ccupation What are your career plans? Name Date of Birth (mm/dd/yyyy) ccupation Name Date of Birth (mm/dd/yyyy) Name Date of Birth (mm/dd/yyyy) ccupation Name Date of Birth (mm/dd/yyyy) T3555 Page 1 Producer Company Address Address Phone Website Phone Numbers q Home q Business q Mobile Phone Numbers q Home q Business q Mobile Date of Birth (mm/dd/yyyy) US Citizen: q Yes q No Name Phone Numbers q Home q Business q Mobile Address Phone Numbers q Home q Business q Mobile Address Date of Birth (mm/dd/yyyy) US Citizen: q Yes q No ccupation What are your career plans? Name Date of Birth (mm/dd/yyyy) ccupation Name Date of Birth (mm/dd/yyyy) Name and Date (mm/dd/yyyy) Appendix: Retirement Planning Resource Guide Use this guide as reference for the materials Penn Mutual provides to discuss general retirement concepts and Social Security with clients. Visit to access these marketing materials. All items are available to download and print immediately from your desktop. Most items are available to order from CustomPoint RR Donnelly or customized from RR Donnelly as indicated. Producer Retirement Resources Retirement Readiness Producer Guide - T3573 Use this step-by-step guide to build retirement reviews into your practice. This guide contains tips for targeting clients, conversation starters and more. Producer Guide: Conducting Retirement Readiness Reviews etirement READINESS REVIEW Retirement Benefits of Life Insurance: Illustrated Sales Concepts on Life Solutions Illustrator Presented with the illustration, this report highlights the benefits and features of your client s particular policy as it relates to a retirement strategy. This helps the client make a more informed decision about the life insurance product. To access, go to Producers Place, click on Software & Tools tab and look for Life Solutions Illustrator listed under Generate New Business section. Retirement Benefits of Indexed Universal Life Insurance Client Retirement Resources Focus on Retirement Planning Individual Brochure - PM6278 Introductory piece for clients on why it s important to start planning and saving for retirement. Brochure dispels common myths about retirement and encourages clients to take action. Focus on Retirement Planning rder from RRD Small Business Retirement Planning Brochure - PM6279 Introductory piece for business owners on why it s important to start planning and saving for retirement. Brochure dispels common retirement myths among business owners and encourages them to take action. Focus on Retirement Planning for business owners rder from RRD Your Future is in Sight Workbook - PM6280 Interactive tool to help clients determine how much money they will need and how much income they will have in retirement. Designed to identify any potential income shortfalls. Can be personalized with contact information. Retirement Planning: Your future is in sight Retirement Fact Finder - T3555 Ask the right questions to uncover important facts on existing retirement vehicles and helping to focus on future needs and goals while building client relationships. etirement READINESS REVIEW 1 Client 1 2 Client 2 Business Individual wner Planning Planning 3 Children 4 Grandchildren 10

13 Prepared By: Producer Name: DBA: Address: City, State Zip: Phone: Web Address: TXXXX Y Y Y Y Y E E E E E A A A A A R R R R R S S S S S T T T T T G G G G G Start your first job Live on one income Rejoin the workforce Save or pay for children s education Buy a second home Take care of parents Consider life in retirement Get married and buy your first home Move into a larger home and have children Advance your career Enter peak earning years Change in family status Finance children s weddings Enjoy grandchildren Downsize your home 1 National Institute on Retirement Security, The Retirement Savings Crisis: Is it Worse Than We Think? Social Security Administration, Fast Facts & Figures About Social Security, Pension Benefit Guaranty Corporation 4 The Retirement Breach in Defined Contribution Plans, HelloWallet, Social Security Administration, Your Retirement Benefit: How is it Figured, 2013 Financial Focus: Establish a systematic saving and protection plan Financial Focus: Continue asset growth and tax-efficient diversification of financial products Financial Focus: Develop a formal retirement plan Financial Focus: Determine when you want to retire and ensure you re on track to do so Financial Focus: Fine-tune your retirement plan Pay down student loans Purchase permanent life insurance Consider contributing to 401(k) / IRA Save for children's education Start a Roth IRA Purchase disability insurance Consider increasing 401(k) contributions Pay off debts Consider a Roth IRA conversion Increase retirement savings and ensure adequate diversification Increase funding of life insurance policies Consider a tax-deferred annuity Explore long-term care insurance Establish a legacy plan Evaluate need to increase retirement savings Consolidate IRA and 401(k) accounts Determine retirement income strategy Determine Social Security income strategy Re-evaluate permanent life insurance and legacy options The earlier you start planning and saving, the better prepared you will be to reach your goals in life as well as your retirement goals. Meet with your Financial Professional to develop and maintain your retirement plan. This infographic is for educational purposes only and should not be viewed as financial, tax, or legal advice applicable to each individual; please consult a qualified advisor regarding your individual circumstances The Penn Mutual Life Insurance Company, Philadelphia, PA T /14 A3YK E2 Households approaching Social Security provides only 36% of the retirement have total income of Americans aged 65 and only $100,000 in retirement 1 savings. (Age 55-64) Pensions make up only earlier than full retirement of all household retirement income sources. 3 nursing homes will need care for 5 years or more. 6 Today In 30 years National average rates for a private room in a nursing home are 7 Daily Annually For the equivalent of $50,000/year in retirement income today, in 20 years Social Security (36%) ther sources (64%) An average, healthy, 65-year-old couple will need $50,000 $101,640 6 Field Guide, National Underwriter Company, U.S. Department of Health & Human Services, Employee Benefit Research Institute, The U.S. Bureau of Labor Statistics Not seasonally adjusted. 10 National Retirement Risk Index, Center for Retirement Research at Boston College, Wells Fargo, Middle-Class Retirement Survey, 2013 Don t delay, work with a Financial Professional to address your retirement needs today. This infographic is for educational purposes only and should not be viewed as financial, tax, or legal advice applicable to each individual; please consult a qualified advisor regarding your individual circumstances The Penn Mutual Life Insurance Company, Philadelphia, PA PM /14 A4YK E2 Consider some of these common mistakes that people often make when planning for retirement. Avoiding these pitfalls can increase the likelihood of reaching your goals. n Not having a retirement plan. ne in four people do not have a financial plan. 1 Without a formal plan for retirement, it s very difficult to reach goals, especially when you haven t even defined those goals. n Failing to start saving early. When you start early, the power of compounding interest makes a bigger difference than setting aside a larger amount later on. With compounding, you add interest to principal and the whole amount earns interest, in turn growing at a much faster rate. n Not participating in employer-sponsored plans. Participating in your employer s retirement savings plan like a 401(k), 403(b), etc. is a no-brainer, as most plans have matching contributions. Not participating is like turning down a raise since you re essentially leaving free money on the table. n Cashing out your retirement account when changing jobs. Taking money from your retirement account and using it for something else, not only seriously harms your future retirement income but essentially gives a large chunk to Uncle Sam in taxes and penalties. n Trying to time the market. Consider your portfolio to be like a bar of soap, the more you handle it, the smaller it gets. Stay focused on the long-term perspective, rather than chasing short-term gains. n Underestimating how long you will be retired. Depending on when you retire, you could spend almost as much time in retirement as you did working. Many people don t save enough to cover expenses for 25 to 30 years. n Saving for college instead of retirement. You may be more focused on education costs since they come first and will help your children s future. But if you have strong retirement finances, you will be in a much better position to help with college costs. Remember, there are no scholarships or loans for retirement. n Lacking diversification. It s important to have a variety of asset types in your retirement portfolio. In addition to having a variety of asset options, true diversification also means accounting for factors like taxes, flexibility, access, etc. n Not calculating how much you need for retirement. nly 44% of people have calculated how much money they will need. 2 The rest simply guess and end up exhausting their retirement savings early, resulting in having to make significant changes to their standard of living. Appendix: Retirement Planning Resource Guide Client Retirement Resources Continued Retirement Readiness Review Template - T3562 Use this summary document to deliver a formal retirement plan recommendation to clients. etirement READINESS REVIEW Retirement Presentation Client-approved presentation that dispels common retirement myths and reinforces the need to start planning for retirement. Presentation includes scripted presenters notes. Can be used on a PC or ipad. Retirement Countdown Infographic Flyer - T3524 Infographic provides an overview of the life milestones, financial focus areas, and action steps at key decades counting down to retirement. Ideal for use with Social Media. n Use T3524-CUST to personalize with contact information. n Use PM6435 to order 18 x24 version of the countdown to retirement flyer for display in client areas. rder from RRD Action Steps: Action Steps: Action Steps: Action Steps: Action Steps: Can You Afford to Retire? Infographic - PM6426 Infographic features key statistics to consider when planning for retirement. Ideal for use with Social Media. rder from RRD Average Retirement Savings 19% Healthcare and Long-Term Care 21% of people who enter Inflation At historical inflation rates, a dollar today may only be worth.42 cents in 30 years. 9 older, with the other 64% of retirement income coming from other sources. 2 1 in 4 people took money out of their 401(k) before they retired. 4 Retirement Planning 53% of households at risk of not maintaining their living standards in retirement. 10 you ll need $101,640/year thanks to inflation. 9 Collecting Social Security age (now 67), can decrease your benefits by up to 30%. 5 People with a formal retirement plan saved three times more than those without a plan. 11 $260,000 to pay for healthcare costs. 8 Common Retirement Mistakes Flyer - PM6427 Flyer highlights some of the most common retirement planning mistakes. Ideal for use with Social Media. rder from RRD Common 11

14 2014 The Penn Mutual Life Insurance Company, Philadelphia, PA aa Appendix: Retirement Planning Resource Guide Client Prospecting Tools Does your retirement plan look like this? Retirement Jar or Postcards - PM6403 Engage clients or prospects with an or postcards that reinforce the need to create a formal retirement plan. n rder as an invitation to seminar, etc. using PM6416 Does your retirement plan look like this? When you don t plan for retirement... Hitchhiker or Postcards - PM6405 Use this or postcards to engage clients on the need to create a formal retirement plan. n rder as an invitation to seminar, etc. using PM6417 n Use with the US Postal Services Every Door Direct program PM6405-USPS How do you envision retirement? or Postcard - PM6404 Use this or postcard to reinforce the benefits of doing a retirement plan review. Can be used for prospecting or as an annual review reminder with existing clients. When you don t plan for retirement No matter how you envision retirement it all starts with a plan. rder from RRD The earlier you get the ball rolling...snowball or Postcards - PM6407 Ideal for use with younger clients to reinforce the benefits of starting to save for retirement early. n rder as an invitation to seminar, etc. using PM6422 The earlier you get the ball rolling Cost of Healthcare or Postcard - PM6406 Educate clients or prospects about the high cost of health care and the importance of saving enough to cover costs in retirement. Ready for the cost of healthcare when you retire? rder from RRD Prospecting Letter or Younger Client Use as a letter or with younger clients. It reinforces the need to save early and invites the clients to come in for a retirement plan review. Prospecting Letter or Close to Retirement Use as a letter or with clients who are closer to retirement. It reinforces the value of having a retirement plan and benefits of reviewing it regularly. Appointment Reminder Letter or Use as a letter or to send as an appointment reminder. It includes a list of suggested materials to bring to the appointment. Thank you Letter or Send an or letter to thank clients for taking an important move to a solid retirement plan and remind them of next steps to help meet their goals. 12

15 Helping Business wners ne Relationship at a Time Table of Contents Personal Information... 1a Key Employee & Executive Benefits... 6a 6b Business Information... 1b Employee Benefits Worksheet... 6c - 6d Background & Goals a - 2d Executive Benefits Worksheet... 6e Succession Planning... 3a - 3b Employee Risk Worksheet... 6f Business Valuation Worksheet... 3c Employee Census g Retirement Planning... 4a - 4b Life Insurance Policy Review...7a - 7g Retirement Assets Worksheet... 4c - 4d Total Insurance Coverage Worksheet... 8a Retirement Income Needs Worksheet... 4e Document Checklist... 9a Estate Planning a 5b Information Release Form...10a Estate Plan Analysis c 5f Family Tree Worksheet... 5g 2011 The Penn Mutual Life Insurance Company, Philadelphia, PA T /11 A1RB A0JC I SAID I D RETIRE TMRRW H MY GDNESS IT IS Appendix: Retirement Planning Resource Guide Small Business Retirement Resources Visit to access additional resources developed specifically for building relationships with business owners. Success ver Survival (SS) Presentation Educate business owners on their unique retirement planning opportunities using the retirement module of the SS workshop. This popular presentation can be customized for use in one-on-one client meetings, small groups, and large workshop settings. Download SS to a Personal Computer and/or as an ipad app. Small Business Fact Finder - T3088 Use the Small Business Fact Finder to ask the right questions to build strong business owner relationships. Use the Retirement section to uncover important information and focus on long-term planning goals with business owners. Selling the Business to Fund Retirement or Postcards - PM6412 Use this or postcards to highlight the importance of having retirement savings in addition to the value of the business. n rder as an invitation to seminar, etc. using PM6415 Small Business Fact Finder Selling your business to fund your retirement? Business wner Planning You plan for your Business or Postcards - PM6411 Reach business owners who often feel that they cannot afford to fund retirement accounts while they build the business. This postcard or highlights the options for having the business fund retirement accounts with tax-deductible contributions. n rder as an invitation to seminar, etc. using PM6414 You plan for your business. What s your plan for retirement? Retirement Pitfalls for Business wners or Postcards - T2999 Use these pop-art inspired or postcards to start a retirement planning conversation with business owners. n rder as an invitation to seminar, etc. using T2982 TMRRW! Prospecting Letter or for Business wner Retirement Planning Highlight the unique needs of business owners and request the client come in for a retirement plan review. 13

16 have surpassed men in earning bachelors and advanced degrees. 1 And hold over 51% of all management and professional positions. 2 Appendix: Retirement Planning Resource Guide Women Retirement Resources Visit to access additional resources developed specifically for building relationships with women. Women are Financial Powerhouses Retirement or Postcards - PM6361 Reach out to women executives and business owners with an empowering yet engaging or postcard that asks them to take action with retirement planning. n rder as an invitation to seminar, etc. using PM6361WKSP Women today are financial powerhouses! It s Never too Early and Almost Never too Late Retirement or Postcards - PM6362 Target women with an or postcards that ask them to take charge of their financial future and not procrastinate with retirement planning. n rder as an invitation to seminar, etc. using PM6362WKSP It s never too early and almost never too late to... Women Surpassing Men Retirement or Postcards - PM6364 Educate women on the need to achieve financial independence with stats like only 1 in 4 women are prepared for retirement. n rder as an invitation to seminar, etc. using PM6364WKSP Work Hard and Smart Retirement or Postcards - PM6365 Engage women with an or postcard to take advantage of life s possibilities now and in retirement. n rder as an invitation to seminar, etc. using PM6365WKSP You ve worked hard to attain your lifestyle; Work smart to enjoy it throughout your lifetime. Social Security Resources Visit to access third party client resources, including information from the Social Security Administration. Social Security Covers 36% of Retirement Income Where s the Rest Coming from? or Postcards - PM6408 Intended for use with clients closer to retirement to establish the need for other sources of income in retirement and the value of meeting with an advisor. n rder as an invitation to seminar, etc. using PM6418 Social Security covers about 36% of retirement income. 14

17 Social Security provides a monthly lifetime retirement benefit adjusted each year for inflation. You qualify for Social Security by having at least 10 years in which you had earnings that were subject to Social Security or self-employment tax. You can apply for benefits at age 62, but are not eligible for full benefits until age 67 (if you were born in 1960 and later). As the chart below indicates, beginning Social Security benefits earlier reduces your monthly benefit amount. Birth Full Amount Benefit is Reduced if Year Retirement Age Retirement Begins at Age % and 2 months 25.83% and 4 months 26.67% and 6 months 27.50% and 8 months 28.83% and 10 months 29.17% 1960 and Later % Your Social Security benefit is based on your average earnings over your entire work history, calculated as a percentage of your income. As the chart below illustrates, people with lower earnings receive a higher percentage Social Security benefit than those with higher earnings. But regardless of where you fall with respect to Social Security benefits as a percentage of earnings, it is clear that Social Security alone is not likely to meet all of your retirement income needs. Social Security Benefit as a % of Earnings $42,000 41% Social Security should be viewed as supplemental $67,000 34% retirement income not the sole source of income. $106,800 28% Tool for unlocking a key component of retirement planning Many people look to Social Security as an important component of their retirement income, but don t realize that the age you begin taking Social Security benefits along with the filing status impacts the benefit amount. For example: Collecting Social Security at age 62 can result in decreased income by as much as 30%. Waiting to take Social Security income past full retirement age can provide an 8% increase for every year you wait. These amounts can make a big difference in overall income over the course of a 30-year retirement. This is why it s important to consider Social Security as part of your client s overall retirement plan. Help Clients Determine the Right Age and Strategy Penn Mutual s Social Security Explorer can improve the way you approach retirement planning. This free tool can help you quickly determine the optimum age and filing strategy for taking Social Security benefits. btaining this information is key for strengthening a retirement plan by coordinating employer and personal retirement assets along with Social Security benefits. Simple to Use You can access Social Security Explorer from Producers Place and immediately begin running client scenarios. To run reports, your clients need to provide three pieces of information: year of birth, marital status and monthly benefits at full retirement age from the Social Security website (that can be accessed through our site). Explorer provides the best strategy by age for clients as well as their spouse. The reports generated can be saved or printed. Benefits of Using Explorer Easy to start the conversation with clients and prospects Includes longevity and CLA adjustments Can lead to more life and annuity sales Adjusts for pensions not covered by Social Security Works with ipads and laptops Get Started with Penn Mutual s Social Security Explorer Tool today. Visit Producers Place to access the tool, key security information, training session and more. For Producer Use nly. Not for use in sales situations The Penn Mutual Life Insurance Company, Philadelphia, PA 19172, T /13 A3YK E2 Your use of Social Security Explorer enables you to assist all of your clients as they approach retirement with one of the most important financial decisions of their life. In some cases, the right choices could mean tens of thousands of dollars for their retirement. But, they must make these choices before they file for benefits. Nine out of ten people age 65 and older are receiving Social Security retirement benefits, and for 32% of them, it represents over 90% of their income. How and when to begin this income is one of the most important decisions many people make concerning retirement. Tens of thousands of people are making their decision every day, yet most of them do not know what their options are. The Social Security office is well staffed with very well trained and knowledgeable employees. The staff answers questions accurately but may not provide information about various planning considerations, options or alternatives. If someone does not know the options, they may not ask about them, and probably will not be told about them. Learning and considering their options, is a brief, but essential phase of retirement planning. A wrong choice, unless it is corrected within a year, continues for life! You probably have heard baby boomers make statements similar to these: I just want to get all the benefits I can, as fast as I can. Who knows how long it will last. I get really confused when people just throw number after number at me. Can t they make it simple and easy to see what might be best for my situation? My friend talked to her financial advisor and was told always to select yadda yadda, yadda; so that s what I m going to do. I paid for it and I want every penny I m entitled to! Sound familiar? Perhaps you have even said one or two of these. These people could use the help you can give them with Social Security Explorer. The right Social Security choices may mean tens of thousands of dollars for retirement. Appendix: Retirement Planning Resource Guide Social Security Resources Continued Missing Something? Social Security Statements or Postcards - PM6409 Highlights the importance of monitoring social security records and meeting with an advisor to maximize future benefits. n rder as an invitation to seminar, etc. using PM6409-USPS Missing something? Social Security statements are no longer being mailed. Do you know how much Social Security to Expect? Treasury Check or Postcards - PM6410 Focuses on the importance of determining best filing strategy and meeting with an advisor before taking Social Security benefits. n rder as an invitation to seminar, etc. using PM6413 Do you know how much Social Security income to expect? Social Security Analysis Prospecting Letter Letter offers client a Social Security analysis and is intended for use with clients within 15 years of retirement. Will Social Security Meet My Retirement Needs Flyer - PM6027 Educate clients on how social security benefits can be impacted by taking benefits early and more importantly the impact of inflation over the course of a long retirement. Will Social Security Meet My Retirement Needs? Social Security Explorer Tool Use this software to evaluate and determine the best strategy for your clients to maximize their social security benefit depending upon their unique situation. Visit to access this dynamic tool. Social Security Explorer Social Security Explorer verview Flyer - T3530 Read this flyer to learn more about the Social Security Explorer Tool. Social Security Explorer Getting Started Guide Learn how to use the Social Security Explorer Tool by reading this guide. r view one of the recorded training sessions located on Producers Place. Getting Started 15

18 ur Noble Purpose Since 1847, Penn Mutual has been driven by our noble purpose to create a world of possibilities, one individual, one family and one small business at a time. As an original pioneer of mutual life insurance in America, we believe that life insurance is the most protective, responsible and rewarding action a person can take to build a solid foundation today and create a brighter future for generations to come. For Producer use only. Not for use in sales situations The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company, Philadelphia, PA T /14 A4CM E2