Simplify Savings Jacob Berlin Travis Reid Miranda Smith

Simplify Savings Jacob Berlin, Travis Reid, Miranda Smith, Kele Mc. Kaig, Jon Buckner, Chevelle Sakyi Gold Group CS 410, Old Dominion University 27 October 2016 1

Outline CS 410 Gold 27 -October-2016 2

What is the problem? CS 410 Gold 27 -October-2016 American individuals of working age do not prepare adequately for retirement due to lack of long term financial knowledge (e. g. points of contact, investment opportunities and their mechanics). 3

Retirement Crisis § 56% of Gen X households are at risk of being unable to maintain their standard of living in retirement (Munnell, 2009) § 48% of late Baby Boomers § 41% of early Baby Boomers § “More than 38 million working age households (45 percent) do not own any retirement account assets” (Rhee, 2013) § Only 52 percent of private sector employees have access to workplace retirement benefits (Rhee, 2013) CS 410 Gold 27 -October-2016 4

Retirement Crisis § Defined Contribution vs. Defined Benefit Plans § 401 K vs Pension Plans § Managed by individual vs workplace § Dependence on defined contribution plans § Requires financial knowledge § Riskier CS 410 Gold 27 -October-2016 5

Customer base § Working age Americans § Financially inexperienced CS 410 Gold 27 -October-2016 6

Process Flow for problem in customer Domain (Munnell, 2009) CS 410 Gold 27 -October-2016 7

§ Web application to educate Simplify Savings people on the points of contact, retirement saving options and how they work § Teach which options would be best for different users with unbiased information § Knowledge Creates Savings! (Lusardi, 2004) CS 410 Gold 27 -October-2016 8

The simplify savings solution (Munnell, 2009) CS 410 Gold 27 -October-2016 9

Major Functional Component Diagram § Users connect to the Internet using their prefered device. Users consist of Admin and Learners Devices with Access to the Internet Dedicated Website for Simplify Savings § Our dedicated website will provide a database to all information related to saving for retirement Database for all Data Related to Retirement Savings Implemented on Server CS 410 Gold 27 -October-2016 10

What will it use? § Web browser § CSS/Java. Script template framework § Java. Script Visualization framework § Manual content collection § Minimal server side processing CS 410 Gold 27 -October-2016 11

Feasibility Analysis CS 410 Gold 27 -October-2016 12

Simplify Savings’ Services Will Do Won’t Do § Sort through vast amount of information online to present it simply § Create a financial plan § Short term budgeting § Explain interactively § Retirement options § Pros and cons of each option § General financial knowledge CS 410 Gold 27 -October-2016 13

Consumer base § 65% of Americans are financially inexperienced, unable to answer three simple financial questions (Lusardi & Mitchell, 2011) § Understanding of Interest Rate § Understanding of Inflation § Understanding of Risk Diversification CS 410 Gold 27 -October-2016 14

Competition § Web platform § FDIC Money Smart game § Mobile device platform § Retire. Plan § Retirement plans 401 k IRA roth § High cost courses CS 410 Gold 27 -October-2016 15

Competition Matrix Financial Education Tool Provides a Comprehensive Retirement Education Simplify Savings X X FDIC Money Smart X Provides A Personalized Financial Plan X Retire. Plan Does Not Assume Previous Financial Knowledge X X X X Retirement plans 401 k IRA roth X X High Cost Classes X X CS 410 Gold 27 -October-2016 Low Cost 16

The benefits § Gain financial knowledge § Confidently plan for retirement § Maintain standard of living in retirement CS 410 Gold 27 -October-2016 17

The Wrap Up § What is the problem? § What is the current state? § What is our solution? § Who is it for? § How does our solution change things? CS 410 Gold 27 -October-2016 18

References 1. Rhee, N. (2013). The Retirement Savings Crisis. Washington DC: National Institute on Retirement Security. 2. Lusardi, A. , & Mitchell, O. S. (2011). Financial literacy and retirement planning in the united states. Journal of Pension Economics & Finance, 10(4), 509 -525. doi: http: //dx. doi. org. proxy. lib. odu. edu/10. 1017/S 147474721100045 X 3. Lusardi, A. (2004, January 9). Saving and the Effectiveness of Financial Education. SSRN Electronic Journal SSRN Journal. doi: 10. 2139/ssrn. 476022 4. Munnell, A. , & Webb A. , & Golub-Sass, F. (2009). The National Retirement Risk Index: After the Crash. Center for Retirement Research. CS 410 Gold 27 -October-2016 19