A Dream Come True

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Retirement

• A Dream Come True
• Or
• Wishful Thinking?

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Retirement A Dream Come True or Wishful
Thinking?

• But not adequately prepared
• Increasing number are at risk of being unable to
  maintain standard of living

Confident Well Have Enough For Retirement
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43
2007 Retirement Confidence Survey, Employee
Benefits Research Institute
Center for Retirement Research at Boston
College, National Retirement Risk Index,2006
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According to the 2006 EBRI Retirement Confidence
Survey

• Less than half (45) say they are currently
  contributing to a workplace saving plan,
• however,
• 75 are expecting to receive retirement income
  from this plan!
• in addition,
• More than one in ten (14) expect this to be
  their largest source of retirement income!

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Perceptions and Attitudes?Reality and
Actions
The Problem
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The Hermann grid illusion produces the illusion
that there are gray spots or squares at the
intersections of the streets or canals.
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Perception Someone will take care of me

• Who?....The Government?
• The Company?
• Family?

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Is this a drawing of a pretty young girl looking
away? Or is it an older woman looking down?
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Retirement is no longer Retirement

• Retirement is no longer an event
• More active lifestyle
• Increased life expectancies mean must last
  longer

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How long will your retirement be?
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How much do I need in retirement?

• Half of workers think they will need 70 or less
  of their pre-retirement income
• One in ten believe they will need 95 or more
• Survey says
• 36 of retirees live on lt 70
• 55 of retirees live on gt95

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Perceptions vs. Reality

• Why arent workers.
• Saving for retirement?
• Estimating reasonable income needs?
• Taking responsibility for their futures?

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The Solution

• Automated Plan Designs
• Expand education message
• Action Plan goals

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Plan Designs

• Automated
• Enrollment
• Deferral Increases
• Diversify/Rebalance investments
• Simplified
• options

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Is the left center circle larger than the right
center circle?
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Expand

• the retirement education message
• with greater focus on all areas of retirement

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Happy and Engaged
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Action Plan Goals

• Where are you now vs. where do you want/need to
  be
• Impact on income if retirement is early/delayed
• Determine how long money will last

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How do you see retirement?
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