Retirement: An Affordable and Good Quality of Life or Sliding into - - PowerPoint PPT Presentation

John Burbank

Senior Lobby Conference October 27, 2016

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Retirement: An Affordable and Good Quality

• f Life or Sliding into Poverty ?

What’s the Problem?

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 462,000

462,000 Washing ashingtonians tonians between ages 45-64 have

less than $25,000 in savings.

 The average monthly So

Social Security cial Security benefit in Washington

is $1,300 per month.

 75.5

75.5% of % of w wor

• rker

ers s employed by businesses with fewer

than 100 employees do no

do not ha t have e a pen a pensio sion n or

• r

retir etirement ement plan plan.

 More than 38 million w

38 million wor

• rking

king-age ge hous household eholds, or 45 per s, or 45 percent, d cent, do not o

• not own

wn any r any retir etirement account as ement account assets sets, whether in a

pension plan, an employer-sponsored 401(k), an IRA

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$2,500 $27,500 $100,000 $325,000 $750,000

12% of Boomers 12% of Boomers 18% of Boomers 16% of Boomers 19% of Boomers

Boomer Savings from AARP survey

$17 $191 $694 $2,257 $5,208

Monthly Annuity for Men

$16 $176 $641 $2,083 $4,808

12% of Boomers 12% of Boomers 18% of Boomers 16% of Boomers 19% of Boomers

Monthly Annuity for Women

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Washington Retirement Exchange

• No administrative or entry fees for employers
• No more than 1% fee on individual accounts
• Department of Commerce vets and certifies

eligible financial services firms

• Employers get to pick retirement plans from this

retirement exchange

• Employees can choose to participate
• Employers can match employee savings, up to 3%.

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$228,568 $177,121 $80,811 $60,000 $25,000 $9,100

Retirement Exchange Male earning $25,000 with employer match, work until age 67 Retirement Exchange Female earning $22,000 with employer match, work until age 67 Retirement Exchange Male earning $25,000 with no employer match, work until age 62 Median balance of defined contribution plans for workers aged 55-64 Median balance in all individual retirement accounts Median balance in all individual retirement accounts for families with income between $25,000 and $50,000

Exchange Savings at Retirement

$1,587 $1,135 $561 $417 $174 $63

Retirement Exchange Male earning $25,000 with employer match, work until age 67 Retirement Exchange Female earning $22,000 with employer match, work until age 67 Retirement Exchange Male earning $25,000 with no employer match, work until age 62 Median balance of defined contribution plans for workers aged 55-64 Median balance in all individual retirement accounts Median balance in all individual retirement accounts for families with income between $25,000 and $50,000

Monthly Exchange Retirement Annuity

The Exchange: A Partial Solution

 1.5 million workers not saving for retirement  10% participate in Exchange  150,000 new savers….. But  1.35 million workers not saving for retirement!

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$1,100 $1,300 $1,600 $2,000 $2,639 $16 $176 $641 $2,083 $4,808

12% 12% 18% 16% 19%

Social Security Payment Estimate and Private Annuities for AARP Cohorts

Social Security Payment Estimate Private Annuity

What do we need?

• Portable
• Universal
• Mandated
• Guaranteed
• Monthly Annuities
• Progressive Benefits

That’s called….

• Social Security
• And we can develop a State Supplemental

Social Security System right here in Washington state!

Stay involved, be a citizen, don’t wai ait f t for

• r op
• ppor
• rtun

tunit itie ies, s, ma make e

• p
• ppor
• rtunit

tunity y hap appen en

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