Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., 225 Liberty Street, New York, NY © 2015 OppenheimerFunds Distributor, Inc. All rights reserved. Social Security: A Retirement Income Cornerstone Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including the possible loss of the principal amount invested. The firm indicated above is not a subsidiary of OppenheimerFunds, Inc., nor is the individual indicated above employed by OppenheimerFunds, Inc., or any subsidiary. Products offered through OppenheimerFunds.

2 Social Security initial claiming by Age: Average If Everyone Were Jumping Off the Bridge, Would You? Percent Claiming Benefits Age (FRA Is Full Retirement Age) Source: Social Security Administration, “Master Beneficiary Record: Annual Statistical Supplement,” 2014

3 Agenda Social Security’s future Obtaining and reviewing your personalized statement What’s not on the statement? Claiming basics Spousal and survivor benefits Special claiming strategies Building a retirement income plan

4 The Elephant in the Room According to the Social Security Administration, Social Security in its current state can last until 2033* Without reform, the payout is expected to be approximately 77 cents per dollar after 2033* Future reform measures are highly probable: Tax increase Decrease in benefits Combination of both Full retirement age (FRA) is gradually increasing (currently age 66) Future of Social Security *Source: Social Security Administration (

5 Retirement Benefit Cornerstone Social Security features (in its current state) Guaranteed income for life Maintains purchasing power through cost of living adjustments Claiming flexibility between age 62 and 70 8% increase for each year delayed after full retirement age (FRA) Wow! What a Deal Source:

6 Credits awarded based on your earnings and Social Security tax payments General qualification is 10 years of work with 40 Social Security credits In 2015, every $1,220 of earnings equals one credit with a max of 4 credits per year Your benefit is calculated based on your highest 35 year earnings average Not all employees work in jobs covered by Social Security Qualifying for Social Security Retirement Benefits Source:

7 Full Retirement Age Based on Birth Year Year of BirthFull Retirement Age and 2 months and 4 months and 6 months and 8 months and 10 months Source:

Understanding Your Statement

9 Visit SSA.gov/myaccount to create your account View or download your personalized statement Call to request by phone Individuals over age 60 who have not elected benefits will receive a paper statement in the mail Individuals that have not opened an online account will receive a mailed statement starting at age 25 following every 5 years Getting Your Statement *

10 Your earnings record Check to be sure all earnings are recorded SSA uses your top 35 years of indexed earnings to calculate your benefit Your estimated benefits Includes estimates for retirement, disability, family survivors and Medicare Statement Highlights

11 Your statement Retirement benefit estimates quoted in order of: Full Retirement Age (FRA age 67 in this example) Age 70 Age 62 Monthly benefit amount is reduced for claiming prior to FRA Monthly benefit amount is increased for claiming after FRA Estimated Retirement Benefits

12 “If you die this year, certain members of your family may qualify for benefits.” Estimated Survivor Benefits

What’s Not On the Statement

14 Value of $1 of 1974 Benefits in 2013 Cost of Living Adjustments (COLA) Source:

15 Average Illustrative FRA monthly payment Monthly Payments by Claiming Ages NOTE: Examples do not reflect costs of living adjustments Source: SSA.gov; $1,328 was average monthly Social Security benefit for a retired worker in January Source: Chart percentages =

16 High wage earner Monthly Payments by Claiming Ages NOTE: Examples do not reflect costs of living adjustments Source: Chart % =

17 Survivor benefit Statement reflects survivor amounts if you died today It does not emphasize importance of maximizing survivor benefit Most married men claim benefits between age 62 or 63 1 Many elderly widows have very low incomes; early claiming by married men is a major social problem 1 Significance of the Survivor Benefit Did you know? 98% of survivor benefit recipients are women 1 80% of widows survive their husbands on average for 14 years 2 1.Why Do Married Men Claim Social Security Benefits So Early? Ignorance or Caddishness? by Steven A. Sass, Wei Sun and Anthony Webb 2.

18 Survivor benefits Surviving spouse gets the higher of their own benefit or your benefit but not both Your claiming decision may permanently impact your spouse If you claim prior to FRA, amount payable is reduced during your lifetime and your survivor’s If you die before claiming, your survivor gets your FRA benefit even if you die before FRA If you claim after FRA or die after FRA without having claimed, survivor receives delayed retirement credits to the earlier of your claim date or date of death A Lasting Impact to Your Spouse Goal of primary earner should be to maximize survivor benefit Source:

Claiming Option Basics

20 Decide wisely; your decision will have a lifetime implication Considerations: Marital status Job standing/status Health Longevity projection Retirement income needs Other income sources The Big Question…So When Do I Claim?

21 Social Security initial claiming by Age: Average A Lasting Impact Percent Claiming Benefits Age (FRA Is Full Retirement Age) Source: Social Security Administration, “Master Beneficiary Record: Annual Statistical Supplement,” 2014 Starting Social Security almost immediately

22 Cumulative social security benefit to age 86 Patience Pays Illustrative FRA Monthly Payment $336,568 Assumes current full retirement age (66) and does not reflect costs of living adjustments or inflation. Source: SSA.gov; $1,328 was average monthly Social Security benefit for a retired worker in January 2015.

23 Cumulative social security benefit to age 86 Patience Pays High wage earner Assumes current full retirement age (66) and does not reflect costs of living adjustments or inflation.

24 Receive 100% of your retirement benefit Work without earnings limit while collecting full benefits Utilize special claiming options for married couples File and suspend Restricted application Full Retirement Age Chart The Magical Age Year of BirthFull Retirement Age and 2 months and 4 months and 6 months and 8 months and 10 months Source:

25 Earnings cap If you elect to receive your Social Security benefit and are still working before your FRA, you are subject to an earnings limit For years that you collect before your FRA (66 years) $1 is withheld for every $2 earned over the limits cap before your FRA (66) In the year you reach FRA, $1 is withheld for every $3 you earn over the limit Your benefit will be increased at your FRA to account for benefits withheld due to earlier earnings Claiming before FRA and working may not make sense for most Permanent reduction in monthly payments Forfeit opportunity for special claiming options Working and Collecting Pre-FRA Example Salary $30,000 Earnings limit- $15,720 Amount subject to cap reduction $12,720 SS reduction - 50% SS amount withheld$6,360 Source:

Spousal and Survivor Benefits

27 Social Security offers additional claiming options for married couples*: Spousal benefit (includes non-working spouse) Survivor benefit Claiming ages more complex 81 combinations of claiming ages Additional considerations Review earnings history for both Determine higher wage earner Higher earner should delay filing as long as possible to permanently: Increase monthly payout Increase survivor benefit Perks for Married Couples * For Social Security, Defense of Marriage Act (DOMA) rules apply in the District of Columbia and states that recognize same sex marriages.

28 Age*Retirement Benefit %Spousal Benefit % 6275%35.0% 6380%37.5% %41.7% %41.7% 66100%50.0% Early claiming reductions Entitled to the higher of: Own benefit based on earnings OR 50% of spouse’s benefit To claim spousal benefit: You must be age 62 and Your spouse is receiving or has filed and suspended retirement benefits Early claiming dramatically reduces spousal benefit Delay credits don’t apply to spousal benefit The Spousal Benefit *Chart example based on person born between 1943 and 1954 Source:

29 John Smith Meet the Smiths Full retirement age66 years Retirement benefit$2,500 1 Non-earner 2 Part-time earner 3 Full-time earner Full retirement age66 Retirement benefit$0$750$1,400 Jane Smith This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

30 $1,250 spousal benefit Spousal Benefit Payout John’s full retirement age benefit = $2,500 monthly Total Benefits This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

31 If you are divorced but your marriage lasted 10 years or longer, you may be eligible to receive benefits based on your ex-spouse's record (even if he or she has remarried) if: You are unmarried; You are age 62 or older; Your ex-spouse is entitled to Social Security retirement or disability benefits and; You have not yet filed Your benefit is equal to ½ of your ex-spouse's full retirement amount (or disability benefit) if you start receiving benefits at your FRA (reductions apply if you file before your FRA) Do not need to coordinate with ex-spouse to file for spousal benefit Your filing has no bearing on filing qualification for the ex-spouse’s current spouse Divorced? You May Be Eligible for Spousal Benefit Source:

32 Widow/Widower is entitled to the higher of Own retirement benefit OR Survivor benefit Eligibility Age 60 or older Survivor any age caring for deceased’s child under age 16 or disabled Surviving divorced spouse, under certain circumstances Special switch strategy Widows or widowers benefits based on age can start any time between age 60 and full retirement age as a survivor If benefits start before FRA, they are reduced a fraction of a percent for each month before FRA Survivor Benefit: a/k/a Widow or Widower Benefit Source: Age*Survivor Benefit % % % % % 66100% Early claiming reductions

Special Claiming Options

34 John Smith The Smiths’ Special Claiming Options Full retirement age66 years Retirement benefit$2,500 Jane Smith 1 Non-earner 2 Part-time earner 3 Full-time earner Full retirement age66 Retirement benefit$0$750$1,400 This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

35 One spouse at FRA or later files, then requests payments be suspended which: Triggers spousal benefit availability Allows filer to build delayed retirement credits EXAMPLE STEP 1: John, age 66, files and suspends Monthly payment suspended at 66 = $2,500 Monthly payment with delayed credits at 70 = $3,300 STEP 2: Jane, age 66, claims for her own and spousal benefit = $1,250 Part-time earner retirement benefit = $750 Spousal benefit = $500 File and Suspend Examples do not reflect cost of living adjustments Source: This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

36 Restricts to receive spousal benefit only Allows retirement benefit to grow with delayed retirement credits Eligibility Spousal benefit is available Filer is at least FRA and has not filed for benefits EXAMPLE STEP 1: John, age 66, files and suspends monthly payment of $2,500 STEP 2: Jane, age 66, files a restricted application Receives full spousal benefit of $1,250 monthly Her own retirement benefit is suspended and earns delayed credits up to age 70 Jane’s restricted application options Restricted Application: Spousal Benefit Examples do not reflect cost of living adjustments Source: This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

37 The Big Impact: Lifetime Benefit Examples StrategyClaiming AgesLifetime Benefit Early filingJane = 62 John = 62 $1,271,000 Early, file and suspendJane = 62 John = 70 1,395,000 Early, Restricted applicationJane = 62 John = 66/70 1,430,000 Restricted application/ File and suspend Jane = 66/70 John = 70 1,608,000 Assumptions: Both FRA is 66 ● John’s FRA benefit is $2,500 monthly ● Jane’s FRA benefit is $1,400 monthly ● John lives to 85 ● Jane lives to 90 ● 3% annual COLA increase ● 8% delayed retirement credit not compounded; applied age 67 to 70 This is a hypothetical example and for comparison purposes only. This material does not constitute a recommendation as to the suitability of any Social Security claiming strategy for any person or persons having similar circumstance to those portrayed. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

38 Summary Your personalized benefits statement can provide an overview of estimated benefits Election age has permanent impact on your benefit and survivor benefit, so delay if you are financially able Special claiming options can help maximize benefits There are many ways to combine techniques Take a proactive planning approach to Social Security and other retirement income sources Speak with your financial advisor for guidance

Social Security and a Retirement Income Plan

40 The Big Picture Social Security is the cornerstone for most retirement income plans, but it is only one component Retirees and near-retirees need to create holistic, comprehensive retirement income plans to promote financial solvency throughout retirement Retirement income plans typically identify and consider: Sources of income in retirement Anticipated spending in retirement Investment and “draw-down” strategies in retirement, taking into account different retirement risks (e.g., longevity, investment and inflation risks) Building a Retirement Income Plan

41 Retirement income sources (Age 65+) Income Sources in Retirement Source: Employee Benefit Research Institute Current Population Survey, March 2011

42 Traditional investing in fixed income products may no longer be appropriate for retirees: Low -yielding fixed income investments may not generate ample income to support a comfortable retirement May not keep pace with inflation Be aware that investments with higher return potential are typically accompanied by a higher degree of risk, including the risk of loss Draw-down strategies Range from the simple to complex Must be actively monitored to ensure they are meeting investor needs and preserving assets for future use If delaying Social Security benefits, “income bridging” strategies may be employed to cover temporary income shortfalls Investments and Draw-Down Strategies This material does not constitute a recommendation as to the suitability of any investment or strategy for any person or persons having similar circumstance to those portrayed. Each individual's strategy must be constructed based on the individual’s financial resources, investment goals, risk tolerance, time frame, tax situation and other relevant factors. OppenheimerFunds does not recommend any specific investments or strategy. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

43 The value of your financial advisor Meet with your financial advisor to: Discuss Social Security income claiming strategies that may work best for you Develop a retirement income plan customized to your specific needs Discuss investment and draw-down strategies that meet your personal risk profile and financial planning needs Putting a Plan in Place Please be aware that financial advisors typically charge a fee for their services. This material does not constitute a recommendation as to the suitability of any investment or strategy for any person or persons having similar circumstance to those portrayed. Each individual's strategy must be constructed based on the individual’s financial resources, investment goals, risk tolerance, time frame, tax situation and other relevant factors. OppenheimerFunds does not recommend any specific investments or strategy. Clients are strongly encouraged to obtain advice from a financial advisor or qualified expert.

44 Delaying equals real dollars over your lifetime Higher wage earner should delay to maximize the retirement benefit and survivor benefit Questions? Wrap Up

45 Thank You Mutual funds are subject to market risk and volatility. Shares may gain or lose value. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com or calling CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. 225 Liberty Street, New York, NY © 2015 OppenheimerFunds Distributor, Inc. All rights reserved. RPL June 2015 For Internal Use Only - Not for Use with the Public.