1. Approaching retirement presentation Approaching retirement

2. Investing involves market risk, including possible loss of principal and possible fluctuations in value. Products may not be available in all states. Certain funds are only available as investment options in variable life insurance or variable annuity contracts issued by life insurance companies. They are NOT offered or made available to the general public directly. Before investing, understand that mutual funds are not insured by the FDIC, NCUSIF or any other Federal government agency and are not deposits or obligations of, guaranteed by or insured by the depository institution where offered or any of its affiliates. Mutual funds involve investment risk and may lose value. The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB, a division of Nationwide Bank. The general distributor for variable products is Nationwide Investment Services Corporation (NISC), member FINRA. The Nationwide Retirement Institute is a division of NISC. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215- 2220. Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Retirement Institute and On Your Side Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide PNM-2790AO.2 (05/15) Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value

3. Budgeting Ten retirement considerations Take action now Resources Recent retirees How should I approach retirement?

4. 4 More planning Recent retirees Recent retiree findings

5. 5 More planning Recent retirees 57% of retirees wish they had done more planning for retirement 1 1 http://hffo.cuna.org/15111/article/1140/html.

6. 6 Recent retirees wish they had done things differently Saved more Planned to spend more, not less Considered the reality of working in retirement Paid more attention to general planning Invested more aggressively in 20s, 30s and 40s More planning Recent retirees 1 1 http://hffo.cuna.org/15111/article/1140/html.

7. Recent retirees Longevity Social S Take action now Resources Ten retirement considerations What do I need to know about retirement?

8. 8 Longevity Ten retirement considerations 2 http://www.prb.org/pdf06/nia_futureoflifeexpectancy.pdf. Life expectancy in the U.S. has increased by 30 years since 1900 2 Outliving savings is a top concern for those approaching retirement Proper planning helps alleviate fears People are living longer 1

9. 9 Lifestyle Ten retirement considerations 3 "Your Retirement Lifestyle," www.kiplinger.com. What kind of lifestyle do you want to live? Approximately 78% of your pre-retirement income is needed to maintain your current lifestyle in retirement. 3 78% 2

10. 10 Lifestyle Ten retirement considerations 4 http://www.nytimes.com/2013/09/29/realestate/carrying-debt-after-retirement.html?_r=0. 5 10 Ideas to Help with the “What Are You Going to Do When You Retire” Question, TopRetirements.com, http://www.topretirements.com/blog/retirement- planning-2/10-ideas-to-help-with-the-what-are-you-going-to-do-when-you-retire-question.html, April 2, 2013 (accessed 10/01/2014). Consider your expenses Average mortgage debt is $70,000 4 Average of $7,700 per year is spent on travel 5 2

11. 11 Timing Ten retirement considerations 6 http://www.transamericacenter.org/docs/default-source/resources/center-research/TCRS2013_SR_fullworker.pdf. 7 http://www.census.gov/prod/2013pubs/acsbr11-09.pdf. 57% of American workers plan to work past age 65 6 54% plan to work at least part time 6 Currently 30% of 65- to 69-year-olds are employed 7 What does retirement mean to you? 3

12. 12 Income sources Ten retirement considerations Main income sources in retirement Part-time work Deferred compensation Social Security Pension [ your company’s plan] 4

13. 13 Ten retirement considerations Pensions and Social Security may not be enough Income sources Pension plans are available to only 20% of employees 8 Social Security accounts for about 40% of what you’ll need 9 Deferred compensation plans are becoming the largest income source 18.5% of Americans over age 65 are working 10 8 http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html. 9 http://www.ssa.gov/policy/docs/ssb/v68n2/v68n2p1.html.http://www.ssa.gov/policy/docs/ssb/v68n2/v68n2p1.html 10 http://www.cnbc.com/id/100424018. 4

14. 14 Ten retirement considerations Options for your retirement plan savings after employment Post-employment options Leave your money in the plan Take a lump-sum distribution Roll into an IRA Take periodic distributions Purchase an annuity There are several options that may be available when you reach retirement age: 5

15. 15 Social Security Ten retirement considerations Timing of Social Security benefits Full retirement age Early retirement age Deferred retirement age 6

16. 16 Social Security Ten retirement considerations Benefits adjust based on when you begin taking them Early retirement lowers benefit payments Deferred retirement increases benefit payments 40% of people plan to take benefits before age 64 11 43% plan to take benefits between age 64 and 69 11 6% plan to take benefits at age 70 or later 11 11 http://capricorn.bc.edu/agingandwork/database/browse/facts/fact_record/5631/all. 6

17. 17 Medicare Ten retirement considerations Familiarize yourself with Medicare benefits 12 http://www.medicare.gov/what-medicare-covers/index.html. Medicare Part A hospital insurance 12 Medicare Part B outpatient care 12 Medicare Part D supplemental drug coverage 12 7

18. 18 Medicare Ten retirement considerations Filling the gaps Purchase a Medicare supplemental plan Talk to a Medicare professional Work with your employer to extend coverage 7

19. 19 Medical expenses Ten retirement considerations Plan for out-of-pocket medical expenses 8 Medicare will likely NOT cover all your needs. Research your options at nationwide.com/myretirement 13 Methodology: Data was collected via an online survey by Harris Interactive on behalf of Nationwide from Jan. 3-19, 2012. The survey was among 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2020 and 625 retired adults ages 65+ having $250,000 or more in household assets. Results were weighted as needed for age, sex, race/ethnicity, education, region, household income and investable assets. Propensity score weighting was also used to adjust for respondents’ propensity to be online. To see the entire survey, visit www.nationwide.com/healthcare. 13

20. 20 Medical expenses Ten retirement considerations Costs increase with age 8 14 Fidelity Consulting Services, 2013. Based on a hypothetical couple retiring at age 65 years or older with average life expectancies (82 male, 85 female). Estimates are calculated for “average” retirees, but may be more or less depending on actual health status, area, and longevity. 14 $220,000

21. 21 Long-term care insurance Ten retirement considerations Long-term care wild card 9 of people over the age 65 will need long-term care. 15 15 LTCI‘s Revolutionary Evolution, Nov.1, 2011 Life Insurance Selling. 9

22. 22 Long-term care insurance Ten retirement considerations Long-term care wild card 9 What average nursing home costs are expected to reach per year by 16 Life and Health Advisor, 2010, “Don’t Let Your Clients Get Blindsided by LTC Costs.” 9 2030. 16

23. 23 Long-term care insurance Ten retirement considerations Learn about long-term care insurance 9 17 http://longtermcare.gov/the-basics/what-is-long-term-care. Services and support to meet personal needs 17 Stand-alone policies 17 Riders on life insurance policies 17 Pays for medical expenses and other costs 17

24. 24 Other factors Ten retirement considerations Don’t overlook other important factors 10 18 http://www.marketwatch.com/story/top-10-most-desired-retirement-activities. Social travel is the most desired activity 18 Physical staying active is part of a healthy retirement Mental engage in stimulating activities

25. Recent retirees Ten retirement considerations Diversify Resources Take action now What do I need to do? 25

26. 26 Periodically review risk tolerance Time until retirement changes how you should invest Protections of accumulated savings is important Evaluate risk tolerance Take action now 1

27. 27 Minimize market fluctuation impact Diversify Take action now Diversification spreading your investments over multiple asset classes Key to minimizing risks in your retirement plan account Diversification and asset allocation do not assure a profit or prevent a loss in a down market.

28. 28 Take advantage of catch-up contributions Catch-up contributions Take action now Those age 50 and above are eligible. Maximum catch-up contribution for 2015 is $6,000 12.9% of those over 50 are taking advantage 19 19 http://www.forbes.com/sites/ashleaebeling/2013/05/03/playing-catch-up-with-your-401k.

29. Recent retirees Ten Retirement Considerations Take action now Resources to help you prepare What resources are available?

30. 30 Get on track and stay on track Helps you determine if you’re on track for retirement Gives you realistic ideas for planning Lets you track progress Can be found online at nationwide.com/myretirement On Your Side Interactive Retirement Planner SM : Interactive Retirement Planner Resources

31. 31 Get personalized Social Security account information My Social Security Account Resources At socialsecurity.gov you can: Set up your own account View what you’ve paid into the system See your estimated benefits

32. 32 Health Care Cost Assessment Resources Here’s a sample of the Health Care Cost Assessment. Your Nationwide ® Representative or advisor can help you with this tool. www.nationwide.com/ facts-about-health-care.jsp

33. 33 Points to remember Talk to your plan’s advisor about putting an action plan into place Research Medicare, long-term care and other health care options Consider hobbies, volunteerism and other activities Use the resources available to you at nationwide.com/myretirement and socialsecurity.gov Approaching retirement Summary

34. Access your retirement account nationwide.com/myretirement 1-800-772-2182