Increasing contributions presentation Increasing contributions in your retirement plan account

Investing involves market risk, including possible loss of principal and possible fluctuations in value. Products may not be available in all states. Certain funds are only available as investment options in variable life insurance or variable annuity contracts issued by life insurance companies. They are NOT offered or made available to the general public directly. Before investing, understand that mutual funds are not insured by the FDIC, NCUSIF or any other Federal government agency and are not deposits or obligations of, guaranteed by or insured by the depository institution where offered or any of its affiliates. Mutual funds involve investment risk and may lose value. The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB, a division of Nationwide Bank. The general distributor for variable products is Nationwide Investment Services Corporation, member FINRA. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH Nationwide, the Nationwide N and Eagle, Nationwide is on your side and On Your Side Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide PNM-2788AO.2 (05/15) Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value

Budgeting Benefits of contributing Increasing your contribution Importance of retirement plans Why should I contribute to my retirement plan?

4 Don’t be a statistic Americans aren’t saving enough % of Americans have no savings 1 36% of Americans aren’t currently saving 2 68% of Americans have access to a 401(k) plan 3 Only 5% contribute the maximum 4 Importance of retirement plans

5 Less than half of Americans have calculated how much they will need for retirement How much you’ll need Importance of retirement plans

6 6 "Your Retirement Lifestyle" 78% How much you’ll need What’s it going to take? This is how much of your pre- retirement income is needed to maintain your lifestyle in retirement. 6 amount needed to maintain Importance of retirement plans

7 How much will you need? 10-15% of your annual compensation 7, which should equal: 1x by age 35 3x by age 45 5x by age 55 8x at retirement 8 7 source: 8 source: How much you’ll need Importance of retirement plans

8 9 "Social Security Planner: Learn About Social Security Programs, Social Security Administration (April 2013) Social Security Social Security will likely not cover your expenses Social Security benefits typically cover — at most — 40% of pre-retirement income 9 Social Security can only pay full benefits to retirees until Post 2033 through 2086, Social Security can cover 75% of benefits promised 10 Importance of retirement plans

9 Full retirement age Early retirement age Deferred retirement age Social Security Options for taking Social Security benefits – permanently decreases payment – permanently increases payment Importance of retirement plans

Tax benefits Increasing your contribution Benefits of contributing What are the benefits of contributing to a retirement plan?

11 Tax benefitsBenefits of contributing Tax-deferred investing Taxes are paid at withdrawal, not when contributing Money has more potential to grow

12 Tax benefits Other tax benefits Potential to be in lower tax bracket at retirement Contributing to plan lowers taxable income Benefits of contributing

13 Tax benefits The power of tax-deferred investing Take a look at the difference between the taxable and tax-deferred account. Taxable Investment Tax-deferred Investment $115,555 $57,581 $46,960 $15,822 $14,356 $200k $150k $100k $50k 10 years 20 years 30 years $0k The power of tax-deferred compounding Totals shown reflect a $100 monthly investment, an 8% annual return, a 4% annual wage inflation and a 25% marginal federal income tax bracket. From the taxable investments, taxes are taken each month from deposits and annually upon gains. Taxes are taken on the tax-deferred investment’s end balance. This is a hypothetical compounding example and is not intended to predict or project investment results of any specific investment. Investment return is not guaranteed and will vary depending upon your investments and market experience. If costs were reflected, the return would be less. Benefits of contributing $158,981

14 Tax benefits Incentive from IRS that gives credit to eligible participants for contributing to a retirement plan 11 Credits 50%, 20% or 10% up to $2,000 ($4,000 if joint filing) " Contributions-Credit-(Saver%E2%80%99s-Credit). Tax Saver’s Credit Benefits of contributing

15 Compounding interest The power of compounding interest This mathematical principle allows investments to accrue potential earnings. Benefits of contributing - -

16 Compounding interest benefits everyone Compounding interest Those in early stages of retirement saving have a longer time horizon Those nearing retirement can take advantage of catch-up contributions Benefits of contributing

17 The average company contribution is now 4.5% of pay 12 Employer match Employer matching helps retirement planning 86% of companies offer a matching program 13 Only a third of employees take advantage of full company match Benefits of contributing

Importance of retirement plans Benefits of contributing The Learning Center Increasing your contribution Why should I increase my contribution?

19 Save more Increasing contribution Contribute as much as possible Maximum contribution limit for 2015 is $18,000 Catch-up contribution for those age 50 and above is $6, IRS Announces 2015 Pension Plan Limitations, Internal Revenue Service, IR (Oct. 23, 2014).

20 Set aside retirement savings before paying other expenses Automatic deductions from your paycheck make it easy Pay yourself first Save more Increasing contribution

21 Auto-increase your existing contribution by 1% each year Save more Increasing contribution Other tips for saving more for retirement Save part of your annual raise or bonus Increase savings after paying off debt

22 Save more Increasing contribution Small increases go a long way and have little impact to your paycheck Salary9%10% $25,000$220,178$244,642 $50,000$440,356$489,284 $75,000$660,534$733,926 Assumes biweekly deferrals of 9% and 10%, accumulated at 7% interest for 30 years.

23 The Learning CenterIncreasing contribution Your online account offers other resources to help you prepare for retirement: Paycheck impact calculator Future value calculator Roth retirement plan analyzer

24 On Your Side Interactive Retirement Planner Set a goal in just 10 minutes. On Your Side Interactive Retirement Planner SM Increasing contribution

25 Points to remember Talk to your Plan Sponsor about making or increasing contributions to your plan Nationwide’s online tools and calculators can help you see the impact of your contributions The On Your Side Interactive Retirement Planner can be a helpful tool in determining how much you will need in retirement Your company’s retirement plan is important, and so is increasing contributions to it SummaryIncreasing contributions

Access your retirement account nationwide.com/myretirement