1. Approaching retirement
Welcome to today’s presentation. We’re here to help you make the most of your retirement plan and keep you informed of concepts that may affect your retirement and your financial situation.

2. Please read this important information.

3. Today we’re going to discuss important aspects to consider as you approach your retirement years. You’ll learn what recent retirees wish they had done differently, ten things to think about before you retire and practical actions you can take to help make your retirement successful. Plus, we’ll go over the resources you have available to put an action plan in place.

4. Recent retiree findings
Recent retirees
More planning
Recent retiree findings
First, we’re going to discuss a study of how recent retirees view their retirement. Their experiences can help you think about how to prepare for your own retirement.

5. 57% of retirees wish they had done more planning for retirement1
Recent retirees
More planning
In a study of recent retirees, more than half felt there was more they could have done to prepare for retirement, and wished they had.1
1http://hffo.cuna.org/15111/article/1140/html 1

6. Recent retirees wish they had done things differently
More planning
Recent retirees wish they had done things differently 1
Saved more
Planned to spend more, not less
Considered the reality of working in retirement
Paid more attention to general planning
Invested more aggressively in 20s, 30s and 40s
Recent retirees shared that there were five specific actions they wish they had taken before retirement. Think about these actions as you prepare for retirement1:
Save more
Plan to spend more in retirement, not less
Consider the reality of working in retirement
Pay more attention to general planning
Invest more aggressively in 20s, 30s and 40s
1http://hffo.cuna.org/15111/article/1140/html. 1

7. 1
We’ve identified ten main considerations you should understand before retirement. We’ll go over each of them in detail:
Longevity
Lifestyle
Timing
Income sources
Post-employment options
Social Security
Medicare
Medical expenses
Long-term care insurance
Other factors

8. Ten retirement considerations
Longevity 1
People are living longer
Life expectancy in the U.S. has increased by 30 years since 19002
Outliving savings is a top concern for those approaching retirement
Proper planning helps alleviate fears
With life expectancy on the rise, it’s important to plan for a potentially long retirement. In the past, retirees may have only needed savings to last 10 to 15 years, but in today’s environment, you could potentially need savings for 25 years or more. We’ll help give you the tools you need to plan for a long, comfortable retirement. 2

9. Ten retirement considerations
Lifestyle
What kind of lifestyle do you want to live? 2
Approximately 78% of your pre-retirement income is needed to maintain your current lifestyle in retirement.3
It’s important to think about what type of lifestyle you’ll want to live in retirement so you can plan accordingly. To maintain your current lifestyle, it’s suggested you’ll need 78% of your current income.3 Proper planning will help you determine the right amount of money for you.
3 "Your Retirement Lifestyle,"
78%
3 "Your Retirement Lifestyle,"

10. 2 Consider your expenses Average mortgage debt is $70,0004
Ten retirement considerations
Lifestyle 2
Consider your expenses
You’ll need to consider whatever fixed expenses you already have. Often retirees spend more money in retirement due to having more free time for travel and hobbies. Keep this in mind when you plan for how much you’ll need in retirement. You may need more, not less.
Average mortgage debt is $70,0004
Average of $3, per year is spent on travel and hobbies5 4
5 "The Big Chill"

11. Ten retirement considerations
Timing
What does retirement mean to you? 3
57% of American workers plan to work past age 656
54% plan to work at least part time6
Currently 30% of 65- to 69-year-olds are employed7
As the statistics show, many Americans feel they need to continue working past age 65. We want to help you plan for retirement so that it’s a choice if you work past 65, not a necessity. 6 7

12. 4 Main income sources in retirement Social Security
Ten retirement considerations
Income sources
Main income sources in retirement 4
Social Security
Deferred compensation
Part-time work
Pension
Once you are retired, you’ll likely live off three main sources: a company pension, Social Security benefits and a company-sponsored deferred compensation plan. Or, you may choose to work beyond age 65.
[ like your company’s plan]

13. Ten retirement considerations
Income sources
Pensions and Social Security may not be enough 4
Pension plans are available to only 20% of employees8
Social Security accounts for about 40% of what you’ll need9
Deferred compensation plans are becoming the largest income source
18.5% of Americans over age are working10
Keep these statistics in mind as you prepare for retirement. With Social Security and pension plans likely not accounting for your full retirement income needs, contributing as much as you can to your company’s retirement plan becomes critical. 8 9 10

14. 5 Options for your retirement plan savings after employment
Ten retirement considerations
Post-employment options
Options for your retirement plan savings after employment 5
There are several options that may be available when you reach retirement age:
Leave your money in the plan
Take a lump-sum distribution
Roll into an IRA
Take periodic distributions
Purchase an annuity
Leaving the money in your plan isn’t always an option. Some employers do not allow retired participants to remain in the plan, but taking advantage of tax deferral as long as possible is ideal.
Taking a lump sum distribution is a good option if you need cash quickly, but keep in mind that you’ll not only lose the compounding interest, but you’ll pay taxes on it all at one time.
Rolling your money into an IRA is often recommended by financial advisors as it gives you greater control of your money and investment choices. But it comes with a cost, as does any purchase.
Taking periodic distributions is often allowed directly out of your retirement plan by selecting an amount you want to withdraw. Monitoring your withdraw rate is important. Withdrawing more than 5% puts you at greater risk of depleting your savings.
Consider other options, like purchasing an annuity to receive regular payments from your money. Annuities can offer several additional payout options not available through your retirement plan, including lifetime payments and survivor benefits. Some annuities will allow you to purchase inflation protection which has been a drawback in the past. Talking to your financial advisor can help you determine which option is best for you.

15. Ten retirement considerations
Social Security 6
Timing of Social Security benefits
Full
retirement
age
Deferred retirement
age
Early
retirement
age
According the Social Security Administration, full retirement age is the age at which a person is entitled to full or unreduced benefits. It is dependent on the year you were born. Currently, full retirement age for most individuals is between age 65 and 67. Early retirement is when benefits are taken before full retirement age and deferred retirement is when benefits are taken after full retirement age.

16. Ten retirement considerations
Social Security
Benefits adjust based on when you begin taking them 6
Early retirement lowers benefit payments
Deferred retirement increases benefit payments
40% of people plan to take benefits before age 6411
43% plan to take benefits between age 64 and 6911
6% plan to take benefits at age 70 or later11
Your benefit payments will depend on when you take them. Early retirement will result in a lower benefit payment and deferred retirement will result in a larger payment. You can see by the statistics, most pre-retirement individuals plan to begin taking benefits before age 69. 11

17. 7 Familiarize yourself with Medicare benefits
Ten retirement considerations
Medicare
Familiarize yourself with Medicare benefits 7
Medicare Part A is hospital insurance which helps to cover inpatient services, but does not cover everything.
Medicare Part B is medical insurance which helps to cover outpatient care, but does not cover everything.
Medicare Part D is supplemental prescription drug coverage that may help with some costs incurred for medications.12 12
Medicare Part A hospital insurance12
Medicare Part B outpatient care12
Medicare Part D supplemental drug coverage12 12

18. Ten retirement considerations
Medicare 7
Filling the gaps
Purchase a Medicare supplemental plan
Talk to a Medicare professional
Work with your employer to extend coverage
Although there may be gaps with Medicare coverage, there are ways to fill them. For example, Medicare supplemental coverage plans can be purchased. It’s wise to speak with a Medicare professional to determine what additional coverage you may need. It may also be possible to extend your existing health care coverage into retirement. Talk to your employer to learn more.

19. Ten retirement considerations
Medical expenses
Plan for out-of-pocket medical expenses 8
Medicare will likely NOT cover all your needs.
Research your options at nationwide.com/myretirement
13 Methodology: Data was collected via an online survey by Harris Interactive on behalf of Nationwide from Jan. 3-19, The survey was among 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2020 and 625 retired adults ages 65+ having $250,000 or more in household assets. Results were weighted as needed for age, sex,
race/ethnicity, education, region, household income and investable assets. Propensity score weighting was also used to adjust for respondents’ propensity to be online. To see the entire survey, visit
As we mentioned earlier, there are likely to be gaps with Medicare coverage. It’s important to think about how you’ll manage out-of-pocket expenses. Your online account at nationwide.com/myretirement has resources to help you plan or you can talk to your plan’s advisor.
Methodology: Data was collected via an online survey by Harris Interactive on behalf of Nationwide from Jan. 3-19, The survey was among 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2020 and 625 retired adults ages 65+ having $250,000 or more in household assets. Results were weighted as needed for age, sex, race/ethnicity, education, region, household income and investable assets. Propensity score weighting was also used to adjust for respondents’ propensity to be online. To see the entire survey, visit 13 13

20. Ten retirement considerations
Medical expenses 8
Costs increase with age
$220,000
The longer you live, the more you can expect to pay for health care as your medical needs increase. Estimates have fluctuated in recent years, but one thing is certain: health care costs are increasing. They are up six percent since 2002 with a typical 65-year-old couple needing about $220,000 to make it through their average life expectancies. 14 14
14 Fidelity Consulting Services, Based on a hypothetical couple retiring at age 65 years or older with average life expectancies (82 male, 85 female). Estimates are calculated for “average” retirees, but may be more or less depending on actual health status, area, and longevity.

21. 9 9 Long-term care wild card of people over the age 65
Ten retirement considerations
Long-term care insurance 9 9
Long-term care wild card
of people over the age 65
will need long-term care.15
Aside from life expectancy, another wild card is whether or not you will need long-term care at some point during your lifetime. Studies show that most people do: 70 percent, in fact.
15 LTCI‘s Revolutionary Evolution, Nov.1, 2011 Life Insurance Selling.

22. 2030. 9 9 Long-term care wild card
Ten retirement considerations
Long-term care insurance 9 9
Long-term care wild card
What average nursing home costs are expected to reach per year by
Yet another study shows that you will be able to expect to pay $265,000 per year in total nursing home costs by the year Let’s talk about what those costs include if you have insurance…
2030. 16
16 Life and Health Advisor, 2010, “Don’t Let Your Clients Get Blindsided by LTC Costs.”

23. 9 Learn about long-term care insurance
Ten retirement considerations
Long-term care insurance 9
Learn about long-term care insurance
Services and support to meet personal needs17
Stand-alone policies17
Riders on life insurance policies17
Pays for medical expenses and other costs17
Long-term care insurance covers a range of services and support you may need to meet your personal care needs. Most long-term care is used for assistance with Activities of Daily Living (ADLs) such as bathing, dressing, eating and hygiene.17
There are many different types of long-term care policies. Stand-alone policies provide coverage in exchange for premiums. Riders on life insurance policies offer benefits if needed, or death benefits if they aren’t used. The benefits received from a long-term care policy can help pay for both medical expenses and other costs incurred during a time of need, depending on the type of policy purchased.17 17 17

24. 10 Don’t overlook other important factors
Ten retirement considerations
Other factors 10
Don’t overlook other important factors
There are other outlying factors that are often overlooked when planning for retirement savings. Thinking ahead to plan for social activities and hobbies outside of the home is very important. Travel is the most desired activity for retirees, so you’ll want to consider planning for it.18
It’s important to maintain an active lifestyle even in retirement. Sedentary lifestyles can often cause emotional and physical ailments in retirement. Staying active and eating right are all part of a healthy retirement.
Some retirees lack the mental challenges that come along with being part of the workforce. It’s important to remain mentally sharp and engage in activities that will continue to challenge the brain. Hobbies and volunteerism are great ways to satisfy all three of the “other retirement factors.” 18
Social travel is the most desired activity18
Physical
staying active is part of a healthy retirement
Mental
engage in stimulating activities 18

25. 25
It’s never too late to take certain actions that can help you save as much as possible for retirement. We’ll talk about those now.

26. Periodically review risk tolerance
Take action
Evaluate risk tolerance
Periodically review risk tolerance 1
Time until retirement changes how you should invest
Protections of accumulated savings is important
Evaluating your risk tolerance and asset allocation are important practices when approaching retirement. Because your time until retirement will change, your investments should change too. You should consider more conservative investments as you near retirement to protect the savings you have already accumulated.

27. Minimize market fluctuation impact
Take action
Diversify
Minimize market fluctuation impact 1
Key to minimizing risks in your retirement plan account
Diversification spreading your investments over multiple asset classes
Diversification plays an important role in minimizing financial risks at all stages of saving for retirement. When you spread your investments over various asset classes, you can help protect your investments from poor-performing investments because other sectors may be high-performing. As you near retirement, your investments will become more conservative.

28. Take advantage of catch-up contributions
Take action
Catch-up contributions
Take advantage of catch-up contributions
Those age 50 and above are eligible.
Maximum catch-up contribution for 2014 is
$5,500
12.9%
of those over 50 are taking advantage19
Catch-up contributions make it possible for people 50 or over to contribute more to their retirement plan than the usual maximum contributions allow. Currently, for 2014, the maximum contribution limit is $17,500. But for those 50 or over, an additional $5,500 is allowed. These limits are adjusted annually. There are currently 12.9% of individuals 50 or older taking advantage of this allowance.19 19 19

29. Now we’ll discuss some of the tools and resources available to you to help you use the information we shared today to better prepare you for retirement.

30. Get on track and stay on track
Resources
Interactive Retirement Planner
Get on track and stay on track
On Your Side Interactive Retirement PlannerSM:
Helps you determine if you’re on track for retirement
Gives you realistic ideas for planning
Lets you track progress
Can be found online at nationwide.com/myretirement
In just 10 minutes, the On Your Side Interactive Retirement PlannerSM tool will gather the necessary information to determine if you are on pace for retirement. If you do have a gap, the tool will help you get realistic ideas for setting a plan, as well as help track your progress in the future. It’s in the Learning Center when you log into your account at nationwide.com/myretirement.

31. Get personalized Social Security account information
Resources
My Social Security Account
Get personalized Social Security account information
At socialsecurity.gov you can:
Set up your own account
View what you’ve paid into the system
See your estimated benefits
The Social Security website has a wealth of information about Social Security benefits. And, you can set up a personalized account to learn what you’ve paid into the system and what your estimated benefits would be at retirement. This can help you determine how much you need to save for retirement. Check out socialsecurity.gov for more information.

32. Health Care Cost Assessment
Resources
Health Care Cost Assessment
Here’s a sample of the Health Care Cost Assessment. Your Nationwide® Representative or advisor can help you with this tool.
facts-about-health-care.jsp
Here’s a sample of the Health Care Cost Assessment. Your Nationwide Representative or advisor can help you with this tool.
ww.nationwide.com/facts-about-health-care.jsp

33. Approaching retirement
Health Care Cost Assessment
Points to remember
Talk to your plan’s advisor about putting an action plan into place
Consider hobbies, volunteerism and other activities
Use the resources available to you at nationwide.com/myretirement and socialsecurity.gov
Research Medicare, long-term care and other health care options
Let’s take a moment to review what we’ve learned today.

34. Questions? 1-800-772-2182 nationwide.com/myretirement
We appreciate your attendance and your participation in learning more about how to plan for your approaching retirement. Please let me know if you have any questions.