5 Reasons You Should Prepare for Retirement Now

REASONS YOU SHOULD PREPARE FOR RETIREMENT NOW I. TO MANAGE RESOURCES WHILE EARLY ANNUITY According to ORC International survey in 2014 401(k) 638,390 contribution retirement plans in 2013 53% OF AMERICANS 71% OF AMERICANS are not familiar with would consider buying an annuity to meet a annuities 513,000 variety of needs of those are 401(k) PENSION PLANS Number of Participants in Pension Plans, 15 MILLION 1975-2012 Number of 150 MIIIIon 120 MIIIIon individuals participating in individual 90 MIIION 60 MIIIION 30 MIIIION retirement plan in 2007 1975 1980 1985 1990 1995 2000 2005 2010 2. TO BE READY FOR THE UNEXPECTED LABOR FORCE PARTICIPATION 2 MILLION THE FUTURE MIGHT NOT BE AS STABLE AS YOU THINK, BE PREPARED FOR CHALLENGES 65% 2000 2013 Number of available people in the labor Reasons: Non participation due to retirement (occurred after 2010) force who want Non participation due disability (increasing over the past 13 years) to work in 2014 HERE ARE THE COMMON REASONS: 54% Poor Health 41% stopped earlier than expected in 2010 37% Work-Related (downsize & closure) of retirees 19% Need to care for a family member 10 20 30 40 50 60 3, TO SUPPORT LONGER LIFE EXPECTANCY The longer you live, the longer your retirement, AVERAGE HOUSEHOLD SPENDING BY AGE RANGE. and the more resources you will need. AGE 65-74 AGE 75+ Food + Alcohol Others Others Food + Alcohol Contributions Contributions Entertainment Entertainment Americans spend Healthcare Healthcare 20 Transportation Housing + Transportation Housing + YEARS Apparel Related Apparel Related in retirement on average 4. TO HAVE MORE TIME FOR YOUR INTERESTS RETIREMENT LETS YOU HAVE A LOT OF FREE TIME TO TAKE UP OLD AND NEW HOBBIES OR DO OTHER THINGS THAT INTEREST YOU. HOW SENIORS AGES 65 TO 74 SPEND THEIR DAY Eating and drinking Working Household activities Purchasing goods services Reading Socializing Relaxing and thinking Watching TV Organizational, civic and religious activities Leisure computer use Exercise Caring for non-household members -Telephone calls, mail and e-mails Caring for household members Other Activities Personal care activities (including sleeping) 5, TO BECOME MORE INDEPENDENT NO ONE ELSE IS GOING TO DO IT FOR YOU AND ONLY YOU COULD KNOW WHAT YOU NEED TO SAVE UP FOR. 53% American households that are at risk of not having saved enough to maintain their living standards in retirement Average debt among near-retirees $100,000 1 OUT OF 3 have not started saving for retirement yet in 2014 Majority of which is HOUSING DEBT SOURCES: Bogleheads.org. Survey of retirement spending. July 2014. PRESENTED BY: DoSomething.org. 5 Reasons You Should Start Saving For Retirement Right Now. 2008. Financial Advisor. 'Sudden Retirement Threatening Baby Boomer Clients. June 2011. Long Term Care Primer Phoenix. Nearly Three-Quarters of Americans Are Interested in Diverse Benefits Available With Annuities, According to Phoenix Companies Survey. July 2014. Research Rap. On the Causes of Declines in the Labor Force Participation Rate. February 2014 Learn why long term care should be one of your main concerns in retirement planning. Social Security Official Website. Near-Retirees are Holding Substantial Debt. April 2013. Treasury Inspector General for Tax Administration. Statistical Trends in Retirement Plans. August 2010. Visit www.longtermcareprimer.com