RISKS IN RETIREMENT PLANS Savings Plans Pension Plans
- Slides: 12
RISKS IN RETIREMENT PLANS Savings Plans, Pension Plans, and Social Security
SAVINGS PLANS 401 k: a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer IRA: a retirement plan that allows you to contribute a limited yearly sum toward your retirement
SAVINGS PLANS RISKS Living too long Lack of understanding (taxes) Withdrawal penalties Not guaranteed Unexpected Expenses
RETIREMENT AGE VS. LIFE EXPECTANCY
PENSION PLANS: TWO TYPES Defined-benefit plan: the employer guarantees that the employee will receive a definite amount of benefit upon retirement Defined-contribution plan: the employer makes predefined contributions for the employee, but the final amount of benefit received by the employee depends on the investment's performance
PENSION PLANS RISKS Shortfall Assumption Company Bankruptcy Not personally managed Vested in the company
DECLINING POPULARITY OF PENSION PLANS
SOCIAL SECURITY Government funded retirement plan offering monthly benefits based on past earnings Not guaranteed Not sufficient for high earners Not personally managed Retirement Age
WORKERS PER BENEFICIARY
MARKET RISK The risk that the organization’s ability to meet its objectives is compromised by fluctuations in the market value of the assets held Inflation and Taxes Government Policies Economic Performance Interest Rate Risk Affects any type of retirement plan
HISTORICAL INTEREST RATES
IN CONCLUSION All retirement plans have some risk so it’s good to diversify!
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Retirement savings percentile
Benefits of pension plans
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Iam national pension fund
Pension schultze
Comprehensive pension management system
Hsc pensions calculator
Hampshire pension services member portal
My pension
Nhs pension examples
Pension planner northamptonshire
Cambridge university pension
