RETIRE 101 Including Georgia Teachers Retirement System (TRS)

Transcription

1 RETIRE 101 Including Georgia Teachers Retirement System (TRS) What s YOUR Tomorrow? Are you saving enough for ALL your tomorrows? National Life Group is a trade name representing various affiliates, which offer a variety of financial service products. Form No (0712)

2 The Problem Is 50% of Educators after 30 years of Teaching Never Retire, They just Get Tired and change jobs. In Chatham County, only 1 out of 3 teachers are saving for retirement and many of those aren t saving enough1 As a State of Georgia employee, your retirement benefit is at the mercy of the State Legislature. In 2013, Georgia reduced retiree s benefits by approximately $1200 a year across the board2 The Average Retired Teacher in Georgia only brings home approximately $1,950 per month. 1- SCCPSS AtlJournal 20123

3 Report Card COMPLETE THIS REPORT CARD TO BE ENTERED IN DOOR PRIZE DRAWING!! Date: Name School Room No. Cell Phone Number Home Phone Number Position # Years Home School Best time to call or meet: Planning Time: After the Workshop, Please tell us how we did (Comments are appreciated your input helps us to improve our presentation) Was our Retirement 101 workshop beneficial to you? YES NO Would this information be beneficial for all educators? YES NO Comments: Following the workshop check all that apply: I am ready to take charge of my financial future and make a commitment to save money for my retirement. I need more information about TRSGA, 403(b)/457(b) plans, IRAs or Roth IRAs. I have a 403b or other savings plan and would like a no obligation review of my current plan(s) to see how it fits with my TRSGA benefits. I am interested in life insurance I am already a member of the ValuTeachers/LSW Family THANKS, We appreciate you. Who is your ValuTeachers representative? THANK YOU FOR YOUR ATTENTION!

4 Longevity: Your Biggest Risk How many retirement years will you enjoy?* Example of a female who reaches a certain age Then the average age she is expected to live Age Life Expectancy (average) * Based on information obtained from AnnuityAdvisors.com

5 Become Familiar with Your TRS Benefit How to determine your TRS Pension Based on your age and years of service under TRS Full retirement is 2% times your years of service Final average compensation based on highest consecutive 24 months of membership If you leave your retirement income to a spouse or child it could reduce your benefit significantly Source:

6 How to Calculate Your Monthly Benefit Sample Calculation 1. Years of service Multiply 30 (years of service) X 2% (age factor) 60% 3. Multiply by average compensation of highest 2 years $4,985 (average) X 60% (payout factor) = $2, Taxes 25% -$ Joint Health Insurance -$ Average Take Home Per Month $1,968 For illustrative purposes only. Source: Georgia TRS Handbook

7 Retirement Income Gap Can you live on a fraction of your final salary? $108,050* Income needed in 20 years $59,825 40% Net Loss of Spendable income $35,892 Teacher Retirement Income Begin Working Retire at 60 *Assumes a 3% inflation factor Source: TRS Handbook

8 Now Is the Time to Plan & Save Will you outlive your retirement money? Know your retirement expenses estimate a budget Don t forget taxes and medical costs Identify your sources of income You may not receive Social Security soon enough Bridge the retirement gap Buy years of service if eligible See if PLOP is right for you Explore saving with a 403(b), 457(b), IRA, ROTH IRA Create another income stream for life; a Personal Pension

9 Cost of Waiting Monthly Contributions needed to Save $250,000 by Age 65* *6% used for illustration $1, $131 $18 2 $550 $369 $256 $ Age 1 Age 2 Age 3 Age 4 Age 5 Age 6 Age

10 How can I Access My Money? Don t Forget: This is YOUR Retirement Money Not a Put and Take Savings Account to buy that BIG TV Loans are Available within the SCCPSS plan For your 403(b) when you turn 59 ½, become disabled, or other IRS provided options For your 457(b) when you leave SCCPSS, become disabled, or other IRS provided options

11 What Makes ValuTeachers/LSW Different? LSW is part of the National Life Group, a 165 year old American Owned Corporation No Bailout We are a Mutual Company No Stockholders In the History of our Company, No LSW client has ever lost any money due to a downturn in the Market

12 What Are Your Next Steps? How I Will Work with You Schedule a work-through to calculate your TRS benefit Determine your retirement gap and find ways to bridge that gap Explain your 403(b) / 457(b) plan and your other savings options Address any other questions you may have

13 Report Card COMPLETE THIS REPORT CARD TO BE ENTERED IN DOOR PRIZE DRAWING!! Date: Name School Room No. Cell Phone Number Home Phone Number Position # Years Home School Best time to call or meet: Planning Time: After the Workshop, Please tell us how we did (Comments are appreciated your input helps us to improve our presentation) Was our Retirement 101 workshop beneficial to you? YES NO Would this information be beneficial for all educators? YES NO Comments: Following the workshop check all that apply: I am ready to take charge of my financial future and make a commitment to save money for my retirement. I need more information about TRSGA, 403(b)/457(b) plans, IRAs or Roth IRAs. I have a 403b or other savings plan and would like a no obligation review of my current plan(s) to see how it fits with my TRSGA benefits. I am interested in life insurance I am already a member of the ValuTeachers/LSW Family THANKS, We appreciate you. Who is your ValuTeachers representative? THANK YOU FOR YOUR ATTENTION!

14 What will your tomorrows look like? Today is the best time to make a commitment to yourself Flo Cawley flocawley@valuteachers.com