Class 15 - Why worry about retirement? - Children later in...

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Why worry about retirement? - Children later in life o 20 30 40 o 40 50 55 o 60 70 75 - Do not stay with the same employer o Average of 6 times - Future is unknown! o Expenses in retirement o Income before retirement o Gap - Women are less likely to be covered employer – sponsored retirement benefits o Women: 39% o Men: 44% - Women earn less than men - Women live longer than men - Terms for pension o Defined benefit 30 years * .02 = .60 $50,000 * .60 = $30,000 Advantages No risk to you Protected by PBGC Disadvantages Employer needed to be wise Employer benefited on additional $$ Changing jobs o Defined contribution YOU decide how to invest your money Advantages You benefit from tax deferred growth
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Class 15 - Why worry about retirement? - Children later in...

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