Increasing contributions presentation Increasing contributions in your retirement plan account.

Increasing contributions presentation

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Budgeting

Benefits of contributing

Increasing your contribution

Importance of retirement plans

Why should I contribute to my retirement plan?

4 Americans aren’t saving enough

1 http://www.statisticbrain.com/american-family-financial-statistics.2 http://www.statisticbrain.com/retirement-statistics.3 http://www.bls.gov/ore/pdf/ec100020.pdf.4 http://business.time.com/2013/01/08/how-to-rock-your-401k-in-2013.

25% of Americans

have no savings1

36% of Americans aren’t

currently saving2

68% of Americans

have access to a 401(k) plan3

Only 5%contribute the

maximum4


5

Less than half of Americans

have calculated how much they will

need for retirement5

5 http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html.

How much you’ll needImportance of retirement plans

6

6 "Your Retirement Lifestyle" www.kiplinger.com.

78%


7

10-15% of your annual compensation7, which should equal: 1x by age 35

3x by age 45

5x by age 55

8x at retirement8

7 source: https://www.fidelity.com/viewpoints/retirement/8X-retirement-savings8 source: http://www.fidelity.com/inside-fidelity/employer-services/age-based-savings-guidelines


8

9 "Social Security Planner: Learn About Social Security Programs, Social Security Administration (April 2013).10 http://www.ssa.gov/oact/tr/2012.

Social Security

• Social Security benefits typically cover —at most — 40% of pre-retirement income9

• Social Security can only pay full benefits to retirees until 203310

• Post 2033 through 2086, Social Security can cover 75% of benefits promised10


9

Full retirement

age

Early retirement

age

Deferredretirement

age

Social Security

– permanently decreases payment

– permanently increases payment



Tax benefits

Increasing your contribution


What are the benefits of contributing to a retirement plan?

11 Tax benefitsBenefits of contributing

• Taxes are paid at withdrawal, not when contributing

• Money has more potential to grow

12 Tax benefits

Potential to be in

lower tax bracket at retirement

Contributing to plan

lowers taxable income


13 Tax benefits

The power of tax-deferred compoundingTotals shown reflect a $100 monthly investment, an 8% annual return, a4% annual wage inflation and a 25% marginal federal income tax bracket. From the taxable investments, taxes are taken each month from deposits and annually upon gains. Taxes are taken on the tax-deferred investment’s end balance. This is a hypothetical compounding example and is not intended to predict or project investment results of any specific investment. Investment return is not guaranteed and will vary depending upon your investments and market experience. If costs were reflected,the return would be less.


14 Tax benefits

• Incentive from IRS that gives credit to eligible participants for contributing to a retirement plan11

• Credits 50%, 20% or 10% up to $2,000 ($4,000 if joint filing)11

11 "http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Retirement-Savings- Contributions-Credit-(Saver%E2%80%99s-Credit).


15 Compounding interestBenefits of contributing

-

-

16 Compounding interest

Those in early stages of

retirement saving have a longer time horizon

Those nearing retirement can

take advantage of catch-up

contributions


17

The average company contribution is now

4.5% of pay12

Employer match

86% of companies

offer a matching program13

Only a

third of employees take advantage of full company match14

12 http://www.psca.org/401-k-plans-are-working13 http://www.transamericacenter.org/docs/default-source/resources/center-research/tcrs2013_sr_retreadimperative.pdf.14 http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/RetirementAccounts/P121889 .




The Learning CenterIncreasing your contribution

Why should I increase my contribution?

19 Save moreIncreasing contribution

Maximum contribution limit

for 2015 is

$18,000

Catch-up contribution for those age 50 and above is

$6,00015

15

15 IRS Announces 2015 Pension Plan Limitations, Internal Revenue Service, IR-2014-99 (Oct. 23, 2014).

20

• Set aside retirement savings before paying other expenses

• Automatic deductions from your paycheck make it easy

Save moreIncreasing contribution

21

Auto-increase your existing contribution

by 1% each year

Save moreIncreasing contribution

Save part of your annual raise or bonus

Increase savings after

paying off debt

22 Save moreIncreasing contribution

Salary 9% 10%

$25,000 $220,178 $244,642

$50,000 $440,356 $489,284

$75,000 $660,534 $733,926

23 The Learning CenterIncreasing contribution

Paycheck impact

calculator

Future value

calculator

Roth retirement plan

analyzer

24 On Your Side Interactive Retirement Planner

SM

Increasing contribution

25

Talk to your Plan Sponsor about making or increasing contributions to your plan

Nationwide’s online tools and calculators

can help you see the impact of your contributions

The On Your Side Interactive Retirement

Planner can be a helpful tool in determining

how much you will need in retirement

Your company’s retirement plan

is important, and so is increasing contributions to it

SummaryIncreasing contributions

Access your retirement account

nationwide.com/myretirement

1-800-772-2182

Increasing contributions presentation Increasing contributions in your retirement plan account.

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