The Six Risks

THE SIX RISKS THAT CAN IMPACT YOUR RETIREMENT

SETTING ASIDE A CERTAIN AMOUNT OF MONEY DURING YOUR WORKING YEARS MAY GET YOU TO RETIREMENT - BUT YOU ALSO HAVE TO GET THROUGH RETIREMENT.

You need to make sure your money lasts as long as you do and that means taking steps to minimize the six most common risks that can impact your financial security in retirement.

1

Longevity

A couple age 65 has a 25% chance that one of them will live to 96.

Source: 2012 Individual Annuity Mortality Basic Tables, Society of Actuaries. 2016 Morningstar. All Rights Reserved.

2

Market Volatility

Since 1945, the S&P 500 has averaged a correction of at least 10% about once every 18 months.

Source: S&P Capital IQ, “Outlook 2014: Good Years Often Follow Great Years” us.spindices.com

3

Inflation And Taxes

An average inflation rate of 4% will cut your purchasing power in half in just 18 years.

Hypothetical example illustrating the impact of inflation on retirement

4

Health Care

Health care costs have risen between 6% and 8% over each of the last 20 years.

Source: http://www.medicare.gov/whatmedicare-covers/index.html

5

Long-term care

70% of people turning age 65 will need some form of long-term care during their remaining lives.

Source: LongTermCare.gov, Who Needs Care?

6

Legacy

Spending down assets in retirement can diminish the financial legacy intended for family or a charity.