Offers five tips on preparing for retirement
COLUMBUS, Ohio, Nov. 13 /PRNewswire-FirstCall/ -- 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 Check(SM), available at
http://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 participate(1). 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 http://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 invest(2) 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 revenue(3). For more information, visit
http://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, April 2005
2 Nationwide Investment Services Corporation, member NASD. In MI only:
Nationwide Investment Svcs. Corporation.
3 Fortune Magazine, April 2006
Contacts:
Carah Brody (614) 677-0275
brodyc@nationwide.com
Erica Lewis (614) 249-0184
lewise6@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwidefinancial.com/
http://www.prnewswire.com/comp/607050.html/
CONTACT:
Carah Brody, +1-614-677-0275, or
brodyc@nationwide.com, or Erica Lewis, +1-614-249-0184, or
lewise6@nationwide.com, both of Nationwide Financial Services,
Inc.
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