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

Retirement: An Affordable and Good Quality of Life or Sliding into Poverty ? John Burbank Senior Lobby Conference October 27, 2016 eoionline.org

What’s the Problem?  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 orker 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 or retir etirement ement plan plan.  More than 38 million w 38 million wor orking king-age ge household hous eholds, or 45 per s, or 45 percent, d cent, do not o 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 eoionline.org

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Boomer Savings from AARP survey $750,000 $325,000 $100,000 $27,500 $2,500 12% of 12% of 18% of 16% of 19% of Boomers Boomers Boomers Boomers Boomers eoionline.org

Monthly Annuity for Men $5,208 $2,257 $694 $191 $17

Monthly Annuity for Women $4,808 $2,083 $641 $176 $16 12% of 12% of 18% of 16% of 19% of Boomers Boomers Boomers Boomers Boomers

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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%. eoionline.org

Exchange Savings at Retirement $228,568 $177,121 $80,811 $60,000 $25,000 $9,100 Retirement Exchange Retirement Exchange Retirement Exchange Median balance of Median balance in all Median balance in all Male earning $25,000 Female earning $22,000 Male earning $25,000 defined contribution individual retirement individual retirement with employer match, with employer match, with no employer match, plans for workers aged accounts accounts for families work until age 67 work until age 67 work until age 62 55-64 with income between $25,000 and $50,000

Monthly Exchange Retirement Annuity $1,587 $1,135 $561 $417 $174 $63 Retirement Exchange Retirement Exchange Retirement Exchange Median balance of Median balance in all Median balance in all Male earning $25,000 Female earning $22,000 Male earning $25,000 defined contribution individual retirement individual retirement with employer match, with employer match, with no employer match, plans for workers aged accounts accounts for families work until age 67 work until age 67 work until age 62 55-64 with income between $25,000 and $50,000

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! eoionline.org

Social Security Payment Estimate and Private Annuities for AARP Cohorts $4,808 Social Security Payment Estimate Private Annuity $2,639 $2,083 $2,000 $1,600 $1,300 $1,100 $641 $176 $16 12% 12% 18% 16% 19%

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 or op oppor ortun tunit itie ies, s, ma make e op oppor ortunit tunity y hap appen en www.eoionline.org eoionline.org