1. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved1 Introduction Your income during Retirement comes from sources other than working Retirement is great, but it is not free, cheap or easy It will take hard work, knowledge, dedication and lots of time to be able to retire Don’t let misconceptions, lack of knowledge or poor planning keep you from retiring The great thing about Retirement is that you don’t have to work to earn money Everybody will not get to experience retirement

2. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved2 Objectives Identify three common misconceptions about retirement You should be able to do the following after completing this lesson. Explain what retirement means Discuss why people are retired longer today than in the past List the primary sources of retirement income for most people Conclude why retirement planning is critical Review four common retirement plans available today Summarize how to determine how much money is needed Identify the common retirement mistakes many people make Define the key terms introduced in this lesson

3. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved3 13.1.1 – What is Retirement? How retirement is defined and what it really means Whether you have to be rich to retire What you have to do to be able to retire Why time is critical to successful retirement The dangers of waiting to begin preparing for your retirement In this Section, you will learn The Importance of Time Example You will run the following Interactive Example

4. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved4 13.1.2 – The Retirement Phase Why time spent in the Retirement Phase is increasing What is causing average life expectancy to increase At what age most workers are retiring In this Section, you will learn How many years you will probably spend in retirement The downside of living longer and retiring earlier

5. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved5 13.1.3 – Retirement Income What the three primary sources of retirement income are Why companies are shifting from pension plans to defined contribution plans How many workers are covered by a traditional pension plan Who is ultimately responsible for planning and funding your retirement How much you can expect to receive in Social Security after you retire In this Section, you will learn

6. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved6 13.1.4 – Retirement Planning What retirement planning is and what it consists of Why retirement planning is a relatively new concept The factors making retirement planning critical today Who is ultimately responsible for planning and funding your retirement Why knowledge of money and personal finance is essential In this Section, you will learn Retirement Savings Growth Example You will run the following Interactive Example

7. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved7 13.1.5 – Retirement Plans What a retirement plan is What a defined benefit plan is What an example of a defined benefit plan is What defined contribution plans are What some examples of defined contribution plans are Why each plan has both advantages and disadvantages In this Section, you will learn Why it is importance for you to understand how different plans work

8. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved8 13.1.6 – How Much Should You be Saving? What the 1 st step to successful retirement planning is Why you must evaluate your income, expenses and current lifestyle How much the experts think you will need during retirement Why you might not be the average retiree In this Section, you will learn How Much is Needed for Retirement Exercise You will run the following Interactive Exercise Why you must evaluate the lifestyle you want to have after retiring

9. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved9 13.1.7 – Accounting for Inflation What inflation is How inflation affects your expenses over time How inflation affects your investments over time How you should prepare for inflation in the future What you must do periodically to offset the affects of inflation In this Section, you will learn

10. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved10 13.1.8 – Common Mistakes What single mistake keeps thousands of workers from retiring each year What the common mistakes many workers make are What happens when you make one or more of the common mistakes In this Section, you will learn

11. Lesson 13.1 Retirement Basics July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved11 Discussion Questions What are some recent retirement trends? Is it realistic to believe your expenses will decrease during retirement?