women and retirement savings
TRANSCRIPT
Planning for retirement: What women should know
Today’s agenda
What retirement means Considerations and
challenges Retirement realities Wisdom for all ages
What does retirement mean to you?
Picture your retirement
Where will you live?
What do you want to do?
What makes you happy?
How will you stay busy?
Have you shared your
plans?
Your retirement, your way
Volunteer Travel Go back to school Work part-time Start a new career Spend more time with
loved ones
C0nsiderations and challenges
Women are a powerful forceMore women than men: Are in in management and
professional occupations1
Start more businesses2
Are enrolled in college3
Have more master’s degrees3
Make majority of household and consumer spending decisions4
1Bureau of Labor Statistics, Women in the Labor Force: A Databook (2012 Edition).2David Bach, Women & Retirement: Investing for the Life You Want, June, 2011.3American Council on Education, Gender Equity in Higher Education: 2010.4Wells Fargo Women and Retirement Research Study, 2011.
Children/grandchildre
nWork Spouse/
partner
Financial concernsParents Health
concerns
What’s on your plate?
Half of older Americans expect to support aging parents and adult children1
Typical Sandwich Generation member is a 48-year-old woman2
Women leave the workforce for an average of 12 years to care for children or parents3
1SunAmerica Financial Group and Age Wave, Retirement Re-Set Study, 2011.2American Association of Retired Persons, The Sandwich Generation: You are not alone, June 28, 2012.3U.S.News & World Report, The Biggest Retirement Challenges for Women, August 6, 2012.
Balancing responsibilities
Retirement realities
COMPARED TO MEN
Typically make less money
Have significantly less retirement savings
Are less likely to have a pension plan
Have longer life spans, which may result in: Higher health care
expenses Greater chance of
needing long-term care
Retirement is a women’s issue
$12,520Average annual Social
Security benefit
3 in 10Social Security is virtually the only source of income
2.9 millionLiving in poverty (more than twice the number
of men)
Older women and Social Security
1Social Security Administration, Social Security is Important to Women, March 2014. 2NWLC, Insecure and Unequal: Poverty and Income Among Women and Families, 2000-2013 (September 2014).
How much have you saved?
Employee Benefit Research Institute, 2014 Retirement Confidence Survey.
The majority say they could reasonably save $25 more per week for retirement.
$25,000$250,000
62%
Most working women estimate they will need at
least…
But most workers have saved less than...
How much will you need?
Income replacement
ratio
80%
15
Start with your retirement plan
Your plan can help you build financial strength
You may contribute: • Up to $18,000 • Additional $6,000 if you are 50 or older
Limit does not include employer contributions
Plan may have lower limits
You may be eligible for Saver’s Credit
Know your retirement savings goal
Learn your investor style by taking a quiz
Risk profiles/Risk quizzes are intended to provide a general indication of your current investment profile and do not constitute investment advice. There may be other factors specific to your situation that are not considered. Your investment risk tolerance may change over time, and you should revisit your situation from time to time to determine if a selected portfolio is still appropriate for your situation.These asset allocation models are based on generally accepted investment theories that take into account historic returns of asset classes over defined periods of time. These models are intended to provide you with general information that may be helpful as you consider your investment options. They are in no way intended to offer advice about which investments to choose or how much to allocate to any particular investment option in the plan. When applying the models to your own situation, you should consider your other income, assets, and investments (e.g., savings accounts, equity in a home, IRA and other retirement investments).
Stay in touch with your plan
Visit your plan’s website
Call our retirement
service representatives
Use online resources and
tools
Wisdom for all ages
Establish healthy habits
Build an emergency fund
Reduce debt
Create a budget
Consider opening a Roth IRA to save even more
Work toward saving at least 10% of your income
Enroll in your retirement plan at work
Determine retirement savings goal
20s 30s
Stay on track
Reduce debt
Create/update will and related estate documents
Review your insurance needs
Review your asset allocation and rebalance as needed
Contribute to your IRA
Increase your contributions
Review your retirement income goal
40s
Focus on what lies ahead
Review and update your retirement planMake catch-up contributions to retirement accountsReview your asset allocationConsolidate your retirement accountsHave a plan for withdrawing savingsForecast what your expenses will be in retirementReview your insurance coverageReview wills and estate documents
50s 60s
Knowledge is power
Beyond TodaySM wellsfargo.com/beyondtoday Provides women with financial perspective at every stage in their lives. Also includes age-related articles, tools, and checklists.
Women's Institute for a Secure Retirement
wiserwomen.org Dedicated to the education and advocacy that will improve long-term financial quality of life for women.
AARP’s Decide. Create. Share.SM
aarp.org/decide Helps women take steps today so they will be adequately prepared for a safe, healthy and secure tomorrow.
Links to third-party sites are provided for your convenience only. Wells Fargo neither endorses, monitors, nor guarantees the accuracy of information of third-party websites. Third-party websites may not follow the same privacy, security, or accessibility standards as Wells Fargo's website. Wells Fargo is not responsible for the security, content, or availability of third-party websites or any reliance thereon.
Get help with your decisionsPartner with a financial professional, who can:
– Help create an action plan– Discuss options for reaching
your goals– Help with contingency plans – Evaluate investment
approaches– Review your goals regularly
Take charge
Decide what you want to
do
Be involved and stay involved
Develop a plan to make
it happen
Don’t be afraid of investing
Plan for contingencies
Thank youRecordkeeping, trustee and/or custody services are provided by Wells Fargo Institutional Retirement and Trust, a business unit of Wells Fargo Bank, N.A. This information and any information provided by employees and representatives of Wells Fargo Bank N.A. and its affiliates is intended to constitute investment education under U.S. Department of Labor guidance and does not constitute “investment advice” under the Employee Retirement Income Security Act of 1974. Neither Wells Fargo nor any of its affiliates, including employees and representatives, may provide “investment advice” to any participant or beneficiary regarding the investment of assets in an employer sponsored retirement plan. Please contact an investment, financial, tax, or legal advisor regarding your specific needs and situation. Diversification and asset allocation do not assure or guarantee better performance and cannot eliminate the risk of investment losses.
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