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Retirement READY
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Introduce speakers—provide brief background to indicate their expertise and why they are presenting—use CFAs if possible
TERMS OF USE
By using this presentation, you understand and agree to the following:
You understand that T. Rowe Price does not undertake to give investment advice in a fiduciary capacity by making available this presentation and that T. Rowe Price Associates, Inc. and/or its affiliates (“T. Rowe Price”) may receive revenue from products and services made available by T. Rowe Price, including investment management, servicing, or other fees related to making available and/or servicing certain investments on its recordkeeping platform.
To the extent you modify this presentation you will not attribute this presentation to T. Rowe Price through co-branding or otherwise.
To the extent you provide investment recommendations to clients or prospective clients, you will not attribute any such recommendation(s) to T. Rowe Price.
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Please insert your data/content where indicated and delete these terms of use and various instructions throughout the PPT before using.
Add Rep Name Here

2. TERMS OF USE
By using this presentation, you understand and agree to the following:
You understand that T. Rowe Price does not undertake to give investment advice in a fiduciary capacity by making available this presentation and that T. Rowe Price Associates, Inc. and/or its affiliates (“T. Rowe Price”) may receive revenue from products and services made available by T. Rowe Price, including investment management, servicing, or other fees related to making available and/or servicing certain investments on its recordkeeping platform.
To the extent you modify this presentation you will not attribute this presentation to T. Rowe Price through co-branding or otherwise.
To the extent you provide investment recommendations to clients or prospective clients, you will not attribute any such recommendation(s) to T. Rowe Price.
You are responsible for satisfying all applicable regulatory standards relating to this communication’s use by your firm, including all applicable content, approval, recordkeeping, and filing requirements.
Please insert your data/content where indicated and delete these terms of use and various instructions throughout the PPT before using.

3. This presentation has been prepared by [Add Firm Name Here] for general education and informational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision. Any tax-related discussion contained in this presentation, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this presentation.
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Rep Talking Points:
Read disclaimer, which informs group of what can and can't be discussed during the session

4. re∙tire∙ment /rә`tī(ә)r mәnt/
noun
The action or fact of leaving one’s job and ceasing to work.
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Rep Talking Points:
This is what we’re all here to talk about… retirement.
The literal meaning is to simply stop working
But with some certainty we can say that “retirement” likely means something different to everyone in the room
What “retirement” means and looks like has changed; it’s not our parents’ retirement, and it will be a personal and unique experience for everyone
But what we’ve found is that while retirement may be personal, often we have the same questions…

5. Do I have enough? Am I on track? How much do I need?
Can I retire early?
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Rep Talking Points:
We’ve spoken with a lot of people who are contemplating their transition into retirement
Generally, there are four questions that we hear from those pre-retirees:
Do I have enough?
Am I on track?
How much do I need?
Can I retire early?
In this presentation we’ll address these questions and provide tools and resources to help out along the way
So let’s start with “How much do I need?”

6. Replacement income
75%
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Answers “How much do I need?”
Rep Talking Points:
As a general rule of thumb, aiming to replace 75% of your current income may help you to maintain your current standard of living in retirement
That 75% replacement income is made up of a combination of your retirement income sources—for example, your savings and any help you may receive from Social Security or other sources
Some financial professionals say that investors will need 75% of their income in retirement.

7. Replacement income Wages Savings Social Security Pensions
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Rep Talking Points:
For many, savings will make up a significant portion of income, while for others, wages or Social Security may be major contributors
Understanding your different sources of income and how they will work together will help you to more accurately understand what your retirement income scenario could look like

8. 86 88 % % of workers expect Social Security to be an income source
of current retirees report Social Security as an income source
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Rep Talking Points:
Often there's a disconnect between what income sources someone may think they will get—or how big of a role certain income sources play—compared with how the situation actually plays out
For example, when we look at those who are working today and compare their expectations to current retirees, there are some interesting stats
86% of current workers expect Social Security to be an income source in retirement, and 88% of current retirees report Social Security as an income source
So while some may not expect Social Security to be a player, it very likely will be. A little later we'll walk through a tool that can help you determine your Social Security benefit
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2017 Retirement Confidence Survey®.

9. 78 %
of workers expect their employer-sponsored savings to be an income source 50 %
of current retirees report employer-sponsored savings as an income source
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Rep Talking Points:
Here's another stat: 78% of current workers expect savings from employer-sponsored retirement plans to be an income source in retirement, but 50% of current retirees report employer-sponsored savings to be an income source
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2017 Retirement Confidence Survey®.

10. what role will your retirement savings play?
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Rep Talking Points:
Thinking about your different income sources is important, and understanding how they all play together is important
So let’s spend a minute and discuss the role of your retirement savings
Looking at your complete savings picture is important
If you have multiple accounts, view them together to understand your retirement savings as a whole
It may make sense to consider consolidating those accounts so that you can more easily see your full retirement savings picture
This will help you to address the next question: “Do I have enough?," or really "Will I have enough?"

11. Retirement savings: HOW MUCH?
Investor's Age: 30 35 40 45 50 55 60 65
Savings Benchmarks:
half of salary saved today
1x salary saved today
2x salary saved today
4x salary saved today
6x salary saved today
8x salary saved today
10x salary saved today
12x salary saved today
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Answers “am I on track” and “do I have enough”
Rep Talking Points:
For a comfortable retirement, we suggest these savings targets (on screen)
[Rep reviews savings targets as a multiple of current salary]
These amounts position a person to be on track to finance a retirement that will last them to about age 95, assuming that that person wants to maintain their current standard of living
[Note to rep: If there is anyone in the room who is younger, this is a good place to remind attendees of the 15% savings rate target and that saving early and often helps to more easily achieve these targets. It’s not just their personal savings, but any employer contributions and the potential growth from investing that will help. And the more time, the better]
Assumptions: Individuals have saved (from age 25 to a retirement age of 65) 15% of their annual salary (increased by 3% each year) in a tax-deferred retirement account with a pre-retirement portfolio consisting of 60% stocks/30% bonds/10% short-term bonds, changing to 40% stocks/40% bonds/20% short-term bonds during retirement. Gross retirement income through age 95 is estimated to equal 75% of pre-retirement salary, consists of annual retirement account withdrawals of 4% plus estimated Social Security benefits (both beginning at age 65), and is increased by 3% annually for inflation. The savings benchmark analysis is based on results from the T. Rowe Price Retirement Income Calculator, which considers 1,000 market simulations and an 80% simulation success rate, using hypothetical age 65 salaries of $70,000, $100,000 and $110,000. That tool’s methodology and assumptions are explained in detail at troweprice.com/ric. Users should consider their own circumstances. Results may not apply to earnings that vary substantially from modeled salaries.

12. THE LEVERS: WHAT YOU CAN ADJUST
LESS
more
Wages
savings
Social security
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Rep Talking Points:
So we’ve discussed how much you’ll need, if you have enough and if you’re on track.
Now lets address whether or not you can retire early… that depends on your retirement readiness and all of the different inputs at play. If you want to determine when you can retire think about the different “levers” and how you might move them to change your outlook and timeline.
The good news is that you have some options that you can take to better position yourself. These are four things you can adjust to change or adjust your outlook…
Wages
Work longer/delay retirement
Part‐time work in retirement (in case that wasn't something you were considering)
Save more now
Increase contributions
Age 50+ catch‐up contributions (Rep should mention changes to contribution limits)
Delay Social Security benefits
Change household plan
How might your plan change if someone else in your household adjusts their plan?
household plan

13. SOCIAL SECURITY: DELAYING
Retirement savings draws down over time
Start receiving Social Security benefits at age 70…
Social Security Payment: $20,916
Start receiving Social Security benefits at age 62…
Social Security Payment: $10,824
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Rep Talking Points:
Social Security—as it exists today—is a locked-in payment
Generally, we deplete our savings, but Social Security is a paycheck “for life”
Delaying when you start receiving Social Security payments secures a greater “paycheck” from that income source, which will come in handy in later years—especially as those healthcare costs begin to rise even further)
You have a few options when it comes to taking Social Security: you can receive reduced benefits early, receive your full benefit at your full benefit age, or continue to increase your benefit by delaying after your full benefit age, up to age 70. After age 70, there's no benefit in delaying payments
The Social Security Administration is your partner. Everyone's situation is unique, so consider reaching out to the Social Security Administration for help determining your full benefit age and how they can help as you think through your retirement income plan
Social Security payments calculated using the Social Security Quick Calculator. This assumes an individual who is currently age 62 in 2016 (date of birth 2/28/54), who is continuing to work, and who is earning $40,000 each year until benefits begin. All figures reflect current dollars. Actual benefits would be higher to reflect future adjustments for inflation. Each year that this individual waits to initiate his/her Social Security benefits, his/her annual retirement income from Social Security would increase by about 7% to 8%, regardless of any potential increases due to additional years of earnings. These results are for illustrative purposes only and are generic in nature. Source: Social Security Quick Calculator, February 2016.

14. your retirement savings
You have options
your retirement savings
Address current expenses
Defer taxes
Rep Talking Points:
OK, now on to looking for your options for your retirement plan savings when you retire or leave your employer
Ask yourself this: When you retire, will you have immediate expenses that you need to take care of, or will you not need to start taking money from your retirement plan?
Your answer can help you figure out the best choice for the money in your plan: taking it out as cash, or keeping it invested and tax-deferred
For example, say you don't need to use your savings right away. You can leave it in your plan and keep it invested
If you leave to work for a different company, you can roll over the money to that employer's plan, if the plan allows
You can also roll over to an IRA if you want to keep the money invested and have access to more options
If you need to start using your savings, you can take a cash distribution, and you'll owe taxes as required by federal and state tax rules
There's no right or wrong choice; it all depends on your personal situation and what you'll need in retirement
Let's take a closer look at what taking a cash distribution means
Cash distribution
leave in current plan
New employer’s plan
Rollover IRA

15. Many investors set their initial withdrawal percentage at
RETIREMENT INCOME: FIRST YEAR
Many investors set their initial withdrawal percentage at 4 %
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Rep Talking Points:
A very common question when it comes time to taking distributions is “How much?”
A general rule of thumb is 4% if you begin between ages 65–69.
If you delay, you may be able to take a little more, but if you start earlier, you might consider taking less
Generally, when you take distributions, you should consider increasing them annually by the rate of inflation, which historically has been 3%
So let’s put that into perspective…
Increase dollar amount by 3% in subsequent years (based on 3% inflation assumption)

16. RETIREMENT INCOME: $500,000 SAVED
$21,218 withdrawal ($20,600 x 1.03)
$20,600 withdrawal ($20,000 x 1.03)
$20,000 withdrawal ($500,000 x 4%)
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Rep Talking Points:
In this example, a retiree has $500,000 and withdraws 4% from the account in the first year, or $20,000
In the second year, the retiree increases that amount by 3%, the inflation rate. That doesn't mean adding 3% to 4% and withdrawing 7%. The retiree multiplies the 4% withdrawal amount of $20,000 by 3%—and withdrawals $20,600 in the second year, as you can see in this chart
The third year, the retiree increases the second-year withdrawal amount by 3% and withdraws $21,218
Taking incremental distributions annually is a strategy many retirees use. Think of it as being like getting a paycheck from your savings
This illustration is hypothetical and not representative of any specific investment or strategy. All investments involve risk, including possible loss of principal.

17. Tax-Deferred Accounts
RETIREMENT INCOME: TYPICAL ORDER 1 2 3
Taxable Accounts
Tax-Deferred Accounts
Tax-Free Accounts
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Rep Talking Points:
If you have accounts outside of your current employer-sponsored plan, another common question is around which accounts to tap first
One strategy is to withdraw first from taxable accounts, such as personal investment accounts. Next, from tax-deferred accounts, such as Traditional IRAs or pretax assets in an employer-sponsored plan. Finally, from tax-free accounts, such as Roth IRAs and Roth assets in an employer-sponsored retirement plan
The rationale here is to allow the tax-advantaged accounts the most time to grow
So hopefully we’ve answered some of your retirement questions, and provided you with insight on what to expect when you retire and how to access the money you've saved
If appropriate for what Rep provides to the plan participants, then say: If you have questions, we’re happy to help and encourage you to call or visit our website to learn more
This approach allows the tax-advantaged accounts to stay invested longer for most investors

18. MONITOR YOUR ACCOUNT ONLINE
Please add in any graphics you think are appropriate, like images of participant websites or account summaries:
Quickly view and access accounts and balances
Perform transactions
Check in on your progress toward retirement
Research investments
Log in wherever you are, whatever your device (if that is true)
Rep Talking Points:
Introduce the website as a resource for monitoring account and calls out key features
Tie key features back to points made in the presentation, for example:
Set-up auto-services via “transactions”
Learn more about investment options via “investments”
Highlight responsiveness of site and promotes mobile adoption
NOTE: Add additional features and benefits of website as appropriate

19. Save enough for retirement. IT’S YOUR FUTURE we’re here to help.
Drive Home Calls to Action
The more you know about your retirement plan, the better you can prepare and determine your retirement readiness

20. Save enough for retirement IT’S YOUR FUTURE. we’re here to help.
Drive Home Calls to Action: Take action now to better position yourself…

21. Save enough for retirement. IT’S YOUR FUTURE. We’RE HERE TO help
Drive Home Calls to Action: Contact us for help

22. Add your logo, telephone number,
/website
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Rep Talking Points:
If you have questions, we’re happy to help and encourage you to contact [provide contact information]
Leave this slide on the screen for attendees to write down contact information.
C1Q4ZY02I 2/18

23. TO PLAN SPONSORS This presentation should only be used as a visual presentation for client meetings. This program should not be altered, printed, distributed, or posted for employees to access.
TO WEB MEETING ATTENDEES This web meeting may be recorded and posted for other employees to access. For security reasons, please do not speak or any personal information during this meeting. For example, you should not give your address, Social Security number, or account information during this web meeting.