2. 5 Essential Things to Know about Retirement Security
Brian W. Klopp Department of Research and Collective Bargaining Services

3. What are the three main sources of retirement income?

4. 3 Legs of a Secure Retirement

5. What is a defined benefit pension plan?
uses a formula based on earnings and service to determine benefits
provides a known benefit for life
pools funds for professional investment
All of the above

6. How much of their pre-retirement income will retirees typically need to maintain their standard of living?
a) 50 to 60%
b) 60 to 70%
c) 70 to 80%
d) 100%

7. What is the average retirement age in the United States?60 63 66 69

8. If I invest $1,000 today and it earns interest compounded at 6% per year, how much will I have in 12 years?
$1,200
$1,700
$2,000
$2,500

9. Social Security Initiative
State Supplemental
Social Security Initiative
Combines features of Social Security and traditional defined benefit pension program
Target benefits to half of initial Social Security benefits
Normal retirement at 65
0.75 percent x years of service x average earnings
produces annual benefit of about $8,000 today
Target cost for basic benefit = 4 percent of payroll