1. Your Workplace Retirement Plan Advantage
Welcome to Your Workplace Retirement Plan Advantage, part of an educational program by The Hartford that’s designed to help you plan more effectively for your retirement.
In this presentation, we’ll discuss the importance of saving, and how taking advantage of your employer’s retirement plan may give you the best opportunity to achieve the kind of retirement you want.
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The importance of saving.
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Reaching a comfortable retirement doesn’t just happen, it takes planning.
And a big part of planning involves saving. Fortunately, your employer’s retirement plan makes saving convenient.
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3. Why start saving now? People are living longer and healthier lives.
You could spend 20 or more years in retirement.*
Most experts suggest you’ll need 70–90% of your current income in retirement.**
You want work to be a choice, not a necessity.
There are many reasons why you need to save now for retirement.
People are living longer and healthier lives. That means you could spend 20 or 30 more years in retirement. That’s good news.
But, it also means that you have a greater risk of outliving your income than your parents did.
Most experts suggest that you will need 70–90% of your current income in retirement.
But without planning, many of us will not have the full amount we need to retire at age 65, so we may have to continue working at least part-time during our retirement years.
But we want that to be a choice, not a necessity.
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*National Vital Statistics Reports, Vol. 56, No.10, 2008
**Mutual Fund Education Alliance, “How Much Will I Need?,” 2008

4. What are your sources of retirement income?
2% Other Sources
15% Savings/Asset Income
18% Pensions/401(k)
28% Work Income
Sources of retirement income
37% Social Security
Some people think that retirement will just take care of itself through Social Security or other sources.
But Social Security was never meant to replace all your income, and it may account for only about 37% of what you may need.
That means that you may need to come up with 63% of your income yourself – this is what is known as your “retirement gap”.
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Age 65 and older.
Source: Federal Interagency Forum on Aging-related Statistics, 2008,
“Older Americans 2008: Key Indicators of Well-being,” table 9A.

5. Things may cost more. Value of $10,000 at various inflation rates*
Years after start of retirement Inflation Rate 2% 4% 6% 8% 5
$9,057
$8,219
$7,473
$6,806 10
$8,203
$6,756
$5,584
$4,632 15
$7,430
$5,553
$4,173
$3,152 20
$6,730
$4,564
$3,118
$2,145
Another reason it’s important to save now is because things may cost more in the future, due to inflation.
Let’s assume that you retire this year, with a nest egg worth $10,000.
If inflation hypothetically is at 4% five years after your retirement, the value of $10,000 in today’s dollars will be only $8,219 in future dollars.
Twenty years after you’ve retired, and with the hypothetical inflation rate at 6%, your $10,000 will only be worth $3,118!
So while you may feel that you are adequately preparing for retirement, remember that the effect of inflation can substantially reduce the purchasing power of your nest egg in the future. Be sure to invest your money in a way that can help overcome the impact of inflation.[click]
*Inflation has averaged 8.77% over the last 30 years as of Jan. 1, Inflation is represented by the Consumer Price Index (CPI), which is a measure of change in consumer prices as determined by the U.S. Bureau of Labor Statistics.

6. Put yourself first. The most important reasons to save?
You deserve a great retirement.
Your financial independence is a necessity.
The most important reasons to save are because [click] you work really hard and you deserve a great retirement.
In addition, your future and financial independence are a necessity, not a luxury.
It’s important to put yourself first when it comes to saving for retirement, and there is no better time than now.
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Your employer’s plan can help you save.
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Now that you know that it’s important to save, let’s look at how your employer’s plan can help.
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8. Your plan can help you save.
About your employer’s plan.
You can make pre-tax contributions to the plan.
Taxes are deferred until you withdraw money (generally at retirement).
You choose from the investment options offered by your plan.
Your workplace retirement plan has tax advantages.
Your contribution is deducted from your pay before income taxes are taken out. By contributing to your plan on a pre-tax basis, you lower the amount of current taxes you pay each pay period.
Taxes are deferred until you withdraw money at retirement — which means that you’re taxed when you take money out, but not when you put it in.
You also choose from a selection of investment options offered by your plan.
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9. Advantages of your workplace retirement plan.
Convenient automatic payroll deductions
Pre-tax savings
Tax-deferred compounding
Convenient payroll deductions make it easy for you to set money aside.
The money comes out of each paycheck automatically, so it’s deposited to your account before you even see it. If you don’t see the money, you aren’t tempted to spend it.
But the real benefits to saving in your plan come from pre-tax saving and … tax-deferred compounding.
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10. The power of pre-tax saving.
375.00
16.83
24.04 5%
450.00
20.19
28.85 6%
525.00
23.56
33.65 7%
600.00
26.92
38.46 8%
300.00
13.46
19.23 4%
225.00
150.00
And your annual tax savings is about
10.10
6.73
Your net pay is reduced by
The benefits of pre-tax savings
14.42 3%
9.62 2%
It equals this dollar amount
When you contribute weekly
This chart shows the benefits of pre-tax saving. The numbers here are based on a $25,000 annual salary.
Let’s say you put 6% of your pay into your employer’s plan. While $28.85 goes into your account, your net pay is reduced by only $ The difference — about $450 a year — is your tax savings.
And as you can see, the tax savings go up as you increase the percentage you contribute. At an 8% contribution rate, the savings is about $600 a year in taxes. That’s more money that you’re saving for your future.
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Assumes a single taxpayer with zero exemptions and $25,000 annual income, weekly paychecks, and 25% federal and 5% state income tax withheld. This data is hypothetical and for illustrative purposes only.

11. The power of tax-deferred growth.
The second advantage of your employer’s plan is that you may benefit from tax-deferred growth.
In addition to your contributions, any potential earnings in your account are tax-deferred (not taxed until they are withdrawn), as well. Over time, tax-deferred savings may dramatically increase the value of your account. This chart shows the growth of a hypothetical $1,500 year investment (divided into equal contributions of about $29 a week) after 30 years, in both a taxable savings account and a tax-deferred account.
Of course, with before-tax contributions, you will have to pay taxes when you withdraw your money from the tax-deferred account. But if you decide to stop working and take all your money out at age 65, you may still end up with more than you would in a taxable account.
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Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any investment option. The principal value and the return of the investment options will fluctuate with changes in market conditions, and shares or units, when redeemed, may be worth more or less than their original value. Hypothetical example for the before-tax savings is based on a pre-tax contribution of $1,500 per year compounded weekly at a hypothetical 6% return, tax-deferred. The example shown for the regular savings is based on a $1,500 after-tax annual contribution, compounded weekly at a hypothetical 6%.

12. Smart saving starts early.
So pre-tax contributions and tax-deferred earnings potential are two compelling reasons to take advantage of your employer’s retirement plan.
Starting early puts the advantage of time on your side – as illustrated by two coworkers, Pat and Miguel.
Both saved about $29 a week until they retired at age 65. But Pat started when he was 25 and Miguel waited until he was 35. Pat’s money had longer to grow. Those 10 years of waiting cost Miguel $124,115.
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Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any investment option. The principal value and the return of the investment options will fluctuate with changes in market conditions, and shares or units, when redeemed, may be worth more or less than their original cost. Taxes may be due upon withdrawal. Hypothetical examples assume weekly contributions earning a hypothetical 6% annual return. Tax-deferred results assume no interim distributions.

13. About The Hartford. Trusted since 1810
40 years experience helping Americans retire better through workplace retirement plans
One of the World’s Most Ethical Companies (Ethisphere Institute, 2008, 2009 and 2010)
Here to help at every stage of the retirement planning process – in person, in print and online
And finally, before we close, just a few words about The Hartford.
We’re proud to be the retirement program provider for your employer’s plan. The Hartford has been trusted by millions of customers since 1810  and we have 40 years experience helping Americans retire better through workplace retirement plans.
Recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute in 2008, 2009 and 2010, we’re committed to doing the right thing for our customers every day.
You can count on us to be here to help  at every stage of the retirement planning process  in person, in print and online.
Thank you for viewing this presentation.
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14. Important information.
Many tax planning strategies emphasize the deferral of current income taxes, on the basis that your federal income tax rate may be lower at retirement. Please keep in mind that federal income tax rates are unpredictable and may be higher when you take a distribution than at the time of deferral. Other factors, including state tax rates and your income, may also affect your overall tax rate upon distribution. Please consult with your tax advisor for individual tax planning strategy and advice. The Hartford does not predict or in any way guarantee favorable tax results.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.
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15. Important information.
Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the mutual funds or
The Hartford's group variable annuity products and funding agreements, and their underlying funds. For fund and product prospectuses and/or a disclosure document containing this and other information, contact your financial professional or visit our website. Read them carefully.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Life Insurance Company, Hartford Retirement Services, LLC (“HRS”), and Hartford Securities Distribution Company, Inc. (“HSD”). HSD (member FINRA and SIPC) is a registered broker/dealer affiliate of The Hartford.
Retirement programs can be funded by group fixed or variable annuity products and funding agreements issued by Hartford Life Insurance Company (Simsbury, CT). Group variable contracts are underwritten and distributed by HSD, where applicable. HRS and HSD offer certain service programs for retirement plans through which a
sponsor or administrator of a plan may also invest in mutual funds on behalf of plan participants.
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© 2010 The Hartford, Hartford, CT

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Thank you.
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