Retirement Planning Guide

It is also the goal of this guide to appeal to all employees. This guide applies whether you have a defined benefit (traditional pension) plan, a defined contribution (401k) plan, or personal investment accounts.

The following sections do not assume changes in medical expenditures post-retirement. Healthcare costs should be addressed by having adequate insurance (including Medigap insurance to supplement Medicare) and having an emergency fund for post-retirement medical expenses. The growth in healthcare costs is expected to outpace inflation in coming years, and it is hard to predict what effects healthcare reform will have on these
costs. Projections by the US Department of Health and Human Services show out-of-pocket medical expenses by Americans increasing by over 60% between 2007 and 2018.¹

Recent trends have shown that household debt payments have increased in recent years (Figure 1), while personal savings rates have declined. Many factors affect these trends, including increased mortgage debt by those who are retirement age. By being proactive in saving and paying off debt, you will have a greater chance of enjoying a financially secure retirement.