The document discusses various strategies and risks involved in retirement planning. It covers non-financial factors to consider in planning, such as career and family goals. It also discusses reviewing resources and expenses, risks of early retirement like boredom and health issues, and legacy planning considerations. Health care risks include issues affording coverage before Medicare eligibility and potential long-term care costs. Overall, the document provides an overview of key aspects to address in developing a retirement plan.

1. RETIREMENT PLANNING: STRATEGIES, RISKS & HEALTH CARE Scott V. Nystrom, PhD February 9, 2008 2008 ValueForum InvestFest

7. “ Average” Income sources for 65 & Older Household SSA Social Security Pension Spouse's pension Savings 12 % 27 % Other 9 % 401(k) 7 % 7 % 18 % IRA 8 % Home equity 5 % 7 % Part-time work

10. “ Average” Spending for 65 & Older Household U.S. Bureau of Labor Statistics Food Medical Housing Transportation Clothing Contributions Insurance and other Entertainment 33 % 11 % 16 % 15 % 5 % 6 % 8 % 6 %

12. Longevity Risk 5.5 95.5 90 7.6 92.6 85 10.2 90.2 80 13.4 88.4 75 17.0 87.0 70 21.0 86.0 65 25.2 85.2 60 29.6 84.6 55 33.3 84.3 50 Remainder of Life Expectancy Life Expectancy Age

13. Inflation Risk $212,000 $175,200 $80,000 Income needed to keep up w/ inflation if retiring at age 55 in 2010 @ 4% Inflation $167,600 $144,000 $80,000 Income needed to keep up w/ inflation if retiring at age 55 in 2010 @ 3% Inflation 2035 (age 80) 2030 (age 75) 2010 (age 55)

17. Health Crisis Risk High-Risk Pool States

21. Health Crisis Risk Long Term Care

22. Health Crisis Risk Long Term Care