AOF Financial Planning Unit 6 Lesson 18 Planning
- Slides: 5
AOF Financial Planning Unit 6, Lesson 18 Planning for Retirement Copyright © 2008– 2015 NAF. All rights reserved.
Long-term goals should be created with retirement in mind After retirement, certain expenses must be paid: • Health care costs • Transportation • Housing • Food • Recreation • Utilities To maintain your lifestyle once you’ve retired, you’ll need 70% of your preretirement paycheck. Which expenses do you think retirees cut when they cannot afford all those listed? What does this mean for their overall wellbeing?
Retirement planning is very important Company pensions are no longer as common or as generous as they were 20 years ago. More and more, it is becoming the individual’s primary responsibility to save for retirement. We are also living longer, so we need to make sure we don’t outlive the money we’ve set aside for retirement. Why do you think pensions are disappearing?
Our social safety net helps… There are several federal, state, and local programs that provide assistance for seniors. These include: • Social Security • Medicare and Medicaid • Food stamps • Public and subsidized housing
Have a retirement planning strategy in place • Take advantage of compounding interest: save early and often. • Invest in tax-deferred investment plans such as IRAs and 401(k) plans, especially those where an employer matches your savings. • Buy a house and pay off your mortgage. • Buy life insurance and annuities. • Try to get comprehensive health insurance. What retirement tip will you give your parents about their retirement?
