1. Tamara D. Williams

2.   This study explores the variances, specifically gender and minority status, predictors, and theories associated with the availability of retirement benefits.. Sex differences in inclusion in employer- provided retirement plans

3.   Structural theories - attributing differences in income to work structures that are external to and uncontrollable by the worker  Individual theories - relating income to factors the individual can control  Life course perspectives - allowing for the consideration of social, cultural, and historical contexts in which people live Three Structural Theories

4.   sample consists of 23,423 full time and year workers including a sub sample of workers, who actually utilize retirement benefits, which consist approximately of 15,000 full time, full year workers. Participants

5.   There was a significant positive relationship between being a woman and working for an employer who has a retirement plan.  However, minority woman and currently married women were significantly less likely to work for an employer with a retirement plan than males.  Minority status had a significant negative impact on the likelihood of working for an employer with a retirement plan. Conclusion

6.   Educational level was a significant positive predictor of the employer having a retirement plan for the full sample and for both men and women.  Government working status ended to be a highly significant positive predictor of working for an employer with a retirement plan. Conclusion (cont.)

7.   Participants  3 separate small focus groups consisting of 9 th grade high school students from a Washington D.C. charter school (3 groups of 10students). Purpose  The rationale is that financial training must begin at the freshman level to be effective by time the students enter college. Value and potential impact of financial literacy training on adolescents

8.   Students had to take a pretest referencing financial literacy  Half of the students were trained and then asked to train their peers  Students were asked to journal their experience and outcomes Methodology

9.   An improvement in both pre and post test scores of 33%.  More specifically, 80% of the participants made significant improvement on the post test. . Students reported positive changes in their behavior related directly to the training provided. Conclusion

10.  Two Main Factors  The old age dependency ratio is increasing, probably the most important change  Increasing life expectancy and its affect on medicare needs. Demographics and Retirement Income

11.   In 1983, Social Security OASDI trust funds were projected to be solvent until at least 2063.  By 1992 the year decreased to 2036.  By 1995 survey the projected date has moved to 2030.  Over the next ten years the trust fund will be built up and is expected to be positive until the year 2019  these changes may include an increase in retirement age and an increase in pay roll tax. Conclusion

12.   Traditional retirement planning assumes household expenditures will increase each year through retirement.  “Reality” retirement planning assumes that’s a household’s real spending will decrease in increments through retirement. Reality Retirement Planning

13.   Are people spending less voluntarily as they age or out of financial necessity or generational differences. QUESTION?

14.   People are voluntarily spending less during retirement.  The traditional approach tends to indicate a much later retirement or decreased spending potential in early retirement years.  The traditional approach also gives the average American household an unrealistic view of their future by overstating what they need for savings to achieve their financial goals. Conclusion

15.   Reality retirement planning more accurately portrays the spending habits of the average American household.  Incorporating these statistics into a client’s financial plans can give a more accurate retirement projection.  Reality retirement planning accommodates spending differences by deviating from normal retirement planning procedures. Conclusion (cont.)

16.   Revolving retirement is occurring – it’s when households cross back and forth between working and not working, transition from full-time to part- time, wait for their spouse to finish working, pursue other endeavors/dreams, volunteer, hobbies for profit, etc.  The revolving retirement segment will grow and eventually dominate the majority of Boomer households over the next ten years and eventually achieve a more traditional retirement. Related Conclusions

17.   The 80 percent rule pertains to how much to save for your preretirement pretax income – rule of thumb  For those who wait to save for retirement and follow the 80 percent rule of thumb would save far too much of their gross income, and would see their annual resources spike upward when they retire.  People should be saving less today and consuming less when retired. Are We Saving Too Much for Retirement?

18.   Consists of a set of prototypical workers planning for retirement in a recent year.  Three types of earners are modeled, low, medium, and high earners born in 1944 specifically.  Either single or married to spouses who never work or save but generate favorable tax treatment.  They must also have had two children living with them from 1968-1985, and retire at one of two different ages, 62 or 66. Participants

19.   Low earners need to save less in general because Social Security replaces earnings at a more generous rate.  Those who retire later need to save less because they get more from Social Security and their savings grows over a longer time.  Americans are not necessarily saving too little for retirement and the traditional approach of the 80 percent rule is misguided. Conclusion

20.   People should save enough so that spending does not need to drop precipitously in retirement.  Even if the typical American is saving exactly the right amount for retirement, nearly half will save too much and nearly half will save too little.  80 percent target is too high if one waits to start saving, and instead one should split the difference and consume a bit more before retirement and a bit less after retirement Conclusion (cont.)

21.   Future research and development of retirement programs and financial institutions must do more for minorities in the way of financial planning and implementation assistance.  Supplying financial literacy courses will have a positive impact on retirement incomes of society as a whole, with an emphasis on minorities and low- income families.  Reality retirement planning is a new approach to retirement that warrant further exploration. Implications