Nationwide encourages Americans to participate in National Retirement Planning Week
Offers five tips on preparing for retirement
FOR IMMEDIATE RELEASE
Nov. 13, 2006
Carah Brody (614) 677-0275
Erica Lewis (614) 249-0184
Columbus, Ohio— Do you know if you’re financially prepared for retirement? According to research by the Center for Retirement Research at Boston College and funded by a grant from Nationwide, 43 percent of Americans are at risk of being financially unprepared for retirement.
Today marks the start of National Retirement Planning Week, and is an opportunity for Americans to assess their retirement plans to ensure they’re on track to achieve a financially secure retirement. National Retirement Planning Week is an annual campaign led by the National Retirement Planning Coalition (NRPC) to raise awareness and educate Americans on the importance of saving for retirement.
“This week serves as a reminder for Americans that they need to take a proactive role in preparing for their retirement,” said Gordon Hecker, senior vice president of marketing for Nationwide Financial.
Hecker offers consumers these five simple actions they can take during National Retirement Planning Week to prevent becoming part of that 43 percent.
1. Find out where you stand. RetirAbility CheckSM, available at www.nationwide.com, is a free and interactive online experience, where consumers can obtain and learn about their own personal retirement readiness score – thereby giving them a starting point to learn more about financial strategies and actions they can take to implement those strategies.
2. Start participating. Many companies offer their employees the opportunity to save for retirement by contributing to a retirement savings program. Yet, approximately 30 percent of all eligible employees choose not to participate1. Remember, the earlier you start preparing for retirement the more time you have for your savings and investments to grow. For example:
Beginning at age 25 Amy invests $2,600 a year and earns an annual return rate of six percent. At age 65 she will have $414, 800. Tom, age 35, begins investing $2,600 a year and earns an annual return rate of 6 percent. At age 65 he will have $211,895 – 10 years of additional investing equaled more than $202,905 for Amy.
This example assumes that Tom and Amy participate in a retirement plan in which their assets are allowed to grow tax free until they retire at age 65. It also assumes that they do not withdraw any money from their account until age 65. This is a hypothetical example designed to illustrate the effects of time and compounding on investments. It does not represent the actual performance of any investment.
3. Diversify your investments. To help increase gains and to reduce potential losses, it’s critical when saving for retirement to diversify your portfolio by holding a variety of investment types. A growing number of workers are using asset allocation to spread their retirement savings around. Asset allocation is a diversification strategy that distributes your investment over three types of assets: stocks, bonds and cash equivalents. Many retirement plans offer asset allocation options known as lifestyle or lifecycle funds. And while asset allocation does help moderate investment risk it does not guarantee a profit or protect against loss in a declining market.
4. Take advantage of any employer match. Many companies offer to match employee contributions to retirement plans up to a certain percentage. You should review your situation to determine if you are contributing enough money to your retirement plan and taking full advantage of a company match. Now is also a good time to review your financial goals and make sure that your current investment strategy is in line with your needs.
5. Consult a professional. Planning for retirement is an important step in securing your future. First, talk with your employer to find out whether they offer a retirement savings program. Second, seek the help of an investment professional to see how you can best utilize any employer plans as part of your overall retirement planning strategy. A professional can help you assess your current standing, evaluate your retirement goals and develop an investment strategy to fit your needs. Visit www.nationwide.com for tips on how to choose an investment professional who is right for you.
Investments involve market risk including possible loss of principal. Past performance cannot guarantee future results.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest2 and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune 100 based on 2005 revenue3. For more information, visit www.nationwide.com.
Nationwide, Nationwide Financial and the Nationwide Framemark
are federally registered service marks of Nationwide Mutual Insurance
Company. On Your Side is a service mark of Nationwide Mutual Insurance
Company.1 Research Highlights: How Well Are Employees Saving and
Investing in 401(k) Plans 2005 Universe Benchmark Highlights, Hewitt,
2 Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
3 Fortune Magazine, April 2006