Retirement What is retirement however you define it

Retirement • What is retirement – however you define it • Purpose of retirement planning – ensuring you have the income, health coverage, etc. to live during the period of your life when you may not be generating income • Retirement income may include Social Security, PERA and your own savings – “three-legged stool” concept • How much do I need to have in savings – depends upon the income you need to live your life during retirement – in general, 8 -10 times your final salary • How much to save – numerous answers as it depends upon your situation and where you are in the various stages of your life – in general, 10 -15% in your 20 s Hennepin County

Hennepin County Retirement Resources • PERA • State-mandated defined benefit plan – provides pension for lifetime • Coordinated Plan – 6. 5% EE; 7. 5% ER • Correctional Plan – 5. 83% EE; 8. 75% ER • Police & Fire Plan – 10. 8% EE; 16. 2% ER • MN State Board of Investments manages investments PERA pension monthly benefits are taxable when paid out to retirees Hennepin County

Hennepin County Retirement Resources • 457(b) Deferred Compensation Plan • Defined contribution plan – you decide distribution of money • 3 vendors to choose from – Fidelity, MNDCP & VOYA • 2 contribution options – after-tax (Roth) and before-tax • You choose how much to contribute each pay period and how to invest them • Only hardship withdrawals allowed when an active employee After-tax contributions are tax free and before-tax contributions are taxable when distributed Hennepin County

Hennepin County Retirement Resources • Health Care Savings Plan (HCSP) • Employer-sponsored program with allows employees to invest in tax-free medical savings account while employed by the county. • Contributions are tax-free and reimbursements are tax-free. It’s “free” money! • Money used post-employment for health care costs, including premiums • Fidelity study of 2015 health care costs – a couple retiring at Age 65 will spend approximately $260, 000 on health care costs until the end of their life Hennepin County

Questions Lisa A. Underhill, Sr. Benefits Analyst lisa. Underhill@hennepin. us, 612 -543 -1122 Human Resources – Benefits Division Government Center, A Tower, 4 th Floor Hennepin County