Presented by StanCorp Equities, Inc., member FINRA

Retirement on the Brain ® Presented by… [Presenter’s name] [Presenter’s title]

Moving Toward Retirement on the Brain ® Being ready In this workshop, you will learn how to: Choose the appropriate investments for retirement Decide when to begin taking Social Security benefits Manage your money to provide retirement income Learn how to help make your money last Moving Toward Retirement

Moving Toward Retirement on the Brain ® Moving in a new direction Pension plans: Defined benefit Monthly income Based on formula (salary, length of employment, etc.) Retirement plans: Defined contribution Savings accumulation Based on amount contributed and investment returns This is not your father’s retirement You have direct control You convert savings into cash flow Moving Toward Retirement

Moving Toward Retirement on the Brain ® Meeting the longevity challenge How long will the money last? How long will the journey be? The average life expectancy of a 65 year-old man is 83 years; for a 65 year-old woman, it is 85 years. Source: Social Security Administration The Society of Actuaries recently increased the top edge of its mortality tables from 100 to 120 years. Moving Toward Retirement

How Inflation Affects Cost of Living Retirement on the Brain ® Meeting the inflation challenge Double-edged sword Expenses increase Purchasing power can erode Extra costs for retirees Average: 3 percent inflation With health care: 5 percent inflation How Inflation Affects Cost of Living Four income scenarios for age 65 Annual income needed at age 90 Annual income needed at age 90 to keep standard of living you had at age 65 Two inflation scenarios: This chart is hypothetical and for illustrative purposes only and is not intended to be a projection of future values of any product. Moving Toward Retirement

Moving Toward Retirement on the Brain ® Choosing the right investments Strategy Move toward more conservative portfolio Leave room for potential performance from stock markets Diversification Spread investments among asset classes Keep your retirement time frame in mind Moving Toward Retirement

Moving Toward Retirement on the Brain ® Diversifying for retirement Diversification does not guarantee a profit or ensure against a loss in a declining market. International investing involves certain risks, such as currency fluctuations, economic instability and political developments. These risks may be accentuated in emerging markets. Small-company investing involves specific risks not necessarily encountered in large- company investing, such as increased volatility. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. Your plan may be funded by a mutual fund trust or a group annuity contract. Both are suitable for long-term investment, including saving for retirement. While annuities generally provide tax-deferred treatment of earnings, the group annuity contract does not provide any additional tax-deferred treatment beyond the treatment provided by your retirement plan. Moving Toward Retirement

Retirement on the Brain ® Taking Social Security benefits If you were born between 1943 and 1954, you can receive full (unreduced) Social Security benefits at age 66. 1 Social Security Benefits at Different Ages1 $20,000 $760 $1,147 $1,824 $30,000 $968 $1,461 $2,325 $40,000 $1,176 $1,775 $2,823 $50,000 $1,384 $2,088 $3,323 $60,000 $1,538 $2,322 $3,693 $70,000 $1,633 $2,466 $3,923 $80,000 $1,718 $2,593 $4,123 $90,000 $1,798 $2,713 $4,316 $100,000 $1,864 $2,798 $4,477 Current annual income Age 70 Age 66 Age 622 Approximate monthly benefit based on your age at retirement 1 Based on 2013 average wage index (AWI), cost-of-living adjustment (COLA), and assumed annual earnings since age 22. To estimate your Social Security benefits, use this table, call 800.772.1213 or visit www.ssa.gov for a Personal Earnings and Benefit Estimate Statement. 2 Actual minimum age is 62 years and one month for people born in 1951. Moving Toward Retirement

Moving Toward Retirement on the Brain ® Taking withdrawals At age: 55 70 ½ 59 ½ No 10% penalty – if you stop working No 10% penalty, regardless of employment Required minimum distribution (RMD) (If you terminate employment or are an owner) Taxes – general guidelines Pay taxes on amount withdrawn (Roth may be an exception) Lump-sum distribution subject to 20% withholding (actual taxes may be more or less) Moving Toward Retirement

Moving Toward Retirement on the Brain ® Managing your money Would you prefer to continue investing and managing your own money, or receive regular payments for the rest of your life, regardless of how long you live or what the stock market does? IRAs and Qualified Plans You take responsibility for making your money last You invest and manage your money on your own Fixed Annuities Take the guesswork out of withdrawals Receive regular payments for life Moving Toward Retirement

Moving Toward Retirement on the Brain ® Managing your money: Qualified plans and IRAs Leave savings in plan Roll over funds to another qualified plan: 401(k), 403(b) or Governmental 457 Roll over funds to an Individual Retirement Account (IRA) Select investment portfolio Monitor account Take periodic withdrawals Money Management Moving Toward Retirement

Moving Toward Retirement on the Brain ® Managing your money: Fixed annuities Take as distribution option (in some plans) Roll over funds into individual retirement annuity Purchase with after-tax dollars Single life (straight life) annuity No payments to spouse or beneficiary after death Certain and life annuity Beneficiary continues receiving benefits for a fixed period Take periodic withdrawals Beneficiary continues to receive benefits for life Three common types: Moving Toward Retirement

Moving Toward Retirement on the Brain ® Maximizing other income sources Pensions Review distribution options Are benefits inflation-indexed? Are Social Security benefits affected? Other savings Raises Refunds Windfalls Personal property Real estate Collectibles, antiques Moving Toward Retirement

Moving Toward Retirement on the Brain ® Protecting your assets Homeowner’s insurance • Adequate policy limits • Special coverage: flood, earthquake, etc. Valuables Liability Health • Early retirement • Medicare supplement policy Long-term care You’ve worked a lifetime to accumulate assets and prepare for retirement. Help protect them by insuring yourself against loss. Moving Toward Retirement

Moving Toward Retirement on the Brain ® Making up for lost time Downsize and liquidate – NOW • Home equity • Valuables, collectibles If property and/or collectibles are appreciating faster than the 6 to 8 percent your savings might earn, consider holding on to them for now rather than selling. Accelerate your saving – NOW • You can contribute to an IRA even if you participate in your company retirement plan Moving Toward Retirement

Accumulated Savings in Five Years Retirement on the Brain ® Accumulating additional savings 1 Accumulated Savings in Five Years $1,000/month $88,865 $103,764 $118,662 $133,561 $148,459 $500/month $51,882 $66,780 $81,679 $96,577 $111,476 $400/month $44,485 $59,384 $74,282 $89,181 $104,079 $300/month $37,088 $51,987 $66,885 $81,784 $96,682 $200/month $29,692 $44,590 $59,489 $74,387 $89,286 $100/month $22,295 $37,194 $52,092 $66,990 $81,889 Savings $30,000 $20,000 $10,000 $40,000 This chart is hypothetical and for illustrative purposes only and is not indicative of the performance of any specific investment. It assumes an 8 percent rate of return compounded monthly. The investment return and principal value of an investment will fluctuate and an investor’s interest, when redeemed, may be worth more or less than the original investment. Past performance is no guarantee of future results. $50,000 Beginning Balance Moving Toward Retirement

Moving Toward Retirement on the Brain ® Making your money last If your full retirement age is 66 and you start receiving benefits at age 62, your benefit would be reduced by 25 percent. Have a cushion • “Liquid” savings (cash equivalents) • Savings equal to three months of living expenses Extend your benefits • Defer Social Security benefits • Defer pension benefits • Defer retirement plan withdrawals Withdraw at a safe rate • 4-5 percent annually: savings likely to last • Less than 4 percent annually: high probability savings will last Moving Toward Retirement

Moving Toward Retirement on the Brain ® Using online planning resources AARP www.aarp.org American Association for Long-Term Care Insurance www.aaltci.org Annuities, retirement planning, investing www.pueblo.gsa.gov Certified Financial Planner Board of Standards www.cfp.net The Standard’s Personal Savings Center www.standard.com/retirement Social Security Administration www.ssa.gov Moving Toward Retirement

Moving Toward Retirement on the Brain ® Planning your estate Take steps to help ensure that your wishes will be carried out when you’re no longer able to manage your own affairs. Will • Name heirs • Create trust for minors and name a trustee • Name an executor Advance directives – directions for end-of-life care Power of attorney – legal/financial representative Seven Baby Boomers turn age 50 every minute. Moving Toward Retirement

Moving Toward Retirement on the Brain ® Finding a financial planner There comes a time when it makes good sense to get professional assistance regarding retirement decisions. Ask about qualifications and credentials Ask about experience and specialties Ask about financial planning approach Find out about charges and method of payment Ask for full disclosure of conflicts of interest Ask for references Shop around – interview several candidates with solid credentials Moving Toward Retirement

Retirement on the Brain ® Thank you!

Retirement on the Brain ® Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value. The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, wholesales a group annuity contract issued by Standard Insurance Company and a mutual fund trust platform for retirement plans. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc. and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations. RP 12225-AA-PPT (4/13)