Top 10 Things to Do Before You Retire

Transcription

1 Top 10 Things to Do Before You Retire

2 We re All at Different Levels of Readiness Summit (<2 years) Significantly less debt Increased job-related stress Desire to spend time with family Base Camp (2 9 years) Starting to feel like they have enough Less interested in new opportunities Physical stamina starts to decline Climbing (10+ years) Finances outweigh others Happy with job Good health Fidelity s Decision to Retire survey of 12,000 pre retirees and recent retirees was conducted by Greenwald and Associates, Inc., (an independent third-party research firm) and in collaboration with Stanford s Center on Longevity. August 2015.

3 Top 10 Things to Do Before You Retire Define Your Retirement

4 Many Factors May Influence Your Plans to Retire Family Health Job Lifestyle Financial Caregiving Dependents Spouse/partner Stress Physical stamina Mental sharpness Identity Recognition Passion Leisure Structure Meaning in Life Assets Debt Cost of Health Care Call for free one-on-one guidance.

5 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order

6 Get Your Financial House in Order Savings Accounts 401(k)s Traditional IRAs 403(b)s Taxable Investments Annuities Roth IRAs 457(b)s Debt Call for free one-on-one guidance.

7 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan

8 Create a Retirement Income Plan Call for free one-on-one guidance. For illustrative purposes only.

9 Specific Actions Needed at Specific Ages 50s Quick Plan 60s Detailed Plan 65+ Master Plan Write down best estimates Super save Set up an initial planning session with Fidelity Determine Social Security strategies Reassess risk and asset allocation Build a detailed financial assessment Sign up for Medicare Discuss retiree health insurance options with employer Prepare portfolio for required minimum distributions Call for free one-on-one guidance.

10 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security

11 Understand Social Security When you claim directly impacts how much you ll receive Age 62 Full Retirement Age Age 70 Lower monthly benefit as much as 30% less Calculated full benefit based on your earnings history Maximum benefit amount as much as 32% more Call for free one-on-one guidance. Source: Social Security.

12 Your Social Security Statement: A Very Important Tool Source: Social Security Administration. For illustrative purposes only.

13 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks

14 Address 5 Key Risks in Your Retirement Plan 1. Longevity 2. Health care expenses 3. Inflation 4. Asset allocation 5. Excess withdrawal Call for free one-on-one guidance.

15 Longevity Is the Game Changer There s a 25% chance that you will live a long time 1 92 years 94 years 99 years Men 1 Women 1 1 of a couple 2 1. Society of Actuaries Annuity 2000 Mortality Table, assumes a person is in good health and has reached age Society of Actuaries Annuity 2000 Mortality Table, updated to 2015 with Schedule G Adjustments. Figure assumes opposite-sex couple with both persons in good health.

16 Know How Much You Can Withdraw Each Year Fidelity can help you determine what your rate should be based on your needs. X 4% 5% 10% Call for free one-on-one guidance.

17 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track

18 Be Sure You re On Track Age x salary 3x salary 6x salary 8x salary 10x salary The 10x savings rule of thumb is developed assuming age-based allocations, a 15% savings rate beginning at age 25, a 1.5% constant real wage growth, a retirement age of 67, and a planning age of 92. The intended goal is to help build retirement savings sufficient to replace approximately 45% of preretirement income to augment Social Security throughout retirement. All calculations are purely hypothetical and a suggested salary multiplier is not a guarantee of future results; it does not reflect the return of any particular investment or take into consideration the composition of a participant s particular account. The salary multiplier is intended only to be one source of information that may help you assess your retirement income needs. Remember, past performance is no guarantee of future results. Performance returns for actual investments will generally be reduced by fees or expenses not reflected In these hypothetical calculations. Returns also will generally be reduced by taxes. Please see slide 30 for additional information.

19 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track Know How You ll Spend Your Time

20 Know How You ll Spend Your Time 60% 43% of husbands want to spend more time with their wife but fewer wives want to spend more time with their husband! Fidelity s Decision to Retire survey of 12,000 pre retirees and recent retirees was conducted by Greenwald and Associates, Inc., (an independent third-party research firm) and in collaboration with Stanford s Center on Longevity. August 2015.

21 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track Know How You ll Spend Your Time Decide Where You ll Retire

22 Decide Where You ll Retire At retirement In your 70s In your 80s Staying in the family home? Upsizing? Downsizing? Tax considerations? Condo living? Same area or somewhere new? Snowbird? Where is it easier? In with your children? Assisted living? Call for free one-on-one guidance.

23 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track Know How You ll Spend Your Time Decide Where You ll Retire Prepare for the Unexpected

24 Protect Your Retirement with an Estate Plan and a Legacy Plan Legacy Plan Photos Values Mementos Heirlooms Charitable Giving Health Care Proxy Beneficiary Designations Estate Plan Will Gifting Trusts Life Insurance Power of Attorney Medical Directives Call for free one-on-one guidance.

25 Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track Know How You ll Spend Your Time Decide Where You ll Retire Prepare for the Unexpected Meet with Fidelity

26 Learn Where to Start Budget Worksheet paper or online SSA.gov for Social Security and Medicare Find tools and information on NetBenefits.com Call for free one-on-one guidance.

27 Recap: Top 10 Things to Do Before You Retire Define Your Retirement Get Your Financial House in Order Create a Retirement Income Plan Understand Social Security Address 5 Key Risks Be Sure You re On Track Know How You ll Spend Your Time Decide Where You ll Retire Prepare for the Unexpected Meet with Fidelity

28 Guidance from Fidelity: A Free Employee Benefit Call Us Today Representatives are available from 8:30 a.m. to 9:00 p.m. E.T.

29 Important Information Investing involves risk, including risk of loss. Guidance provided by Fidelity is educational. The retirement planning information contained herein is general in nature and should not be considered legal or tax advice. Fidelity does not provide legal or tax advice. This information is provided for general educational purposes only and you should bear in mind that laws of a particular state and your particular situation may affect this information. You should consult your attorney or tax advisor regarding your specific legal or tax situation. Additional information from slide 18. The annual income target assumes no pension income. This target is based on Consumer Expenditure Survey 2011 (BLS), Statistics of Income 2011 Tax Stat, IRS 2014 tax brackets, and Social Security Benefit Calculators. Fidelity developed the salary multipliers through multiple market simulations based on historical market data, assuming poor market conditions to support a 90% confidence level of success. These simulations take into account the volatility that a typical target date asset allocation might experience under different market conditions. Volatility of the stocks, bonds, and short-term asset classes is based on the historical annual data from 1926 through the most recent year-end data available from Ibbotson Associates, Inc. Stocks (domestic and foreign) are represented by Ibbotson Associates SBBI S&P 500 Total Return Index, bonds are represented by Ibbotson Associates SBBI U.S. Intermediate Term Government Bonds Total Return Index, and short term are represented by Ibbotson Associates SBBI 30-day U.S. Treasury Bills Total Return Index, respectively. It is not possible to invest directly in an index. All indices include reinvestment of dividends and interest income. The information is for educational purposes only. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved

30 Guidance From Fidelity: A Free Employee Benefit Call Us Today Representatives are available from 8:30 a.m. to 9:00 p.m. E.T.