Learn how to determine how much money you need to save for your future retirement, and how to stay on track to meet your retirement goals.

1. Saving for
Retirement

2. Saving for Retirement
The PICPA
Pennsylvania Institute of Certified Public Accountants
(PICPA)
The PICPA is a professional association of more than
22,000 members working together to improve the CPA
profession and serve the public interest.

3. Saving for Retirement
Evaluating Your Goal
Retirement means different things to different people.
You must evaluate what will impact your retirement
goals and what you hope your retirement will look like.

4. Saving for Retirement
Things to Consider
• What do you want to do after you retire?
• Where do you want to live?
• Would you be able to stay in your existing home?
• Will you want to move to a warmer climate?
• Will you be alone, with a spouse, with other family?
• Would you prefer a retirement community?

5. Saving for Retirement
Your Future Plans
Estimates suggest that retirees will need 70% of their
pre-retirement earnings to maintain their standard of
living.
This can vary, depending on your retirement goals—
travel, hobbies, starting your own business.

6. Saving for Retirement
Ballpark Estimate
There are resources to help you estimate your cost of
living in retirement:
• www.360financialliteracy.org’s retirement
calculator
• www.AARP.org’s Money tab
• www.choosetosave.org’s calculators

7. Saving for Retirement
Retirement Costs
Can include:
• Food and clothing
• Housing and utilities
• Transportation
• Insurance
• Recreation: travel, dining out, entertainment, hobbies
• Health care costs: nursing homes, home health care

8. Saving for Retirement
What about Social Security?
How much you receive depends on a few factors:
• How much you’ve earned and how long you’ve worked
• Date you start collecting benefits
• Whether you work after retirement
• Whether family members will collect benefits
• Whether you receive certain other government benefits

9. Saving for Retirement
Get an Estimate
The best way to get an estimate of how much you’ll
receive from Social Security is to ask!
Use www.ssa.gov’s Social Security Retirement Benefits
Estimator.

10. Saving for Retirement
Ways to Save
401(k) Accounts
• Employer makes contributions to the plan on a pre-
tax basis
• You can defer up to large portions of your salary
• Earnings accrue tax deferred
• Contribute the maximum even if your employer
doesn’t match it

11. Saving for Retirement
Ways to Save
Roth IRA
• Investments accumulate tax-free
• A withdrawal from a Roth IRA is not taxed if it is
made 5 years after the first contribution and is done
after age 59 ½
• There are income limits

12. Saving for Retirement
Ways to Save
Traditional IRAs
• Money invested grows tax-free until it is withdrawal
• Heavy penalties if withdrawn before age 59 ½
• Income and qualification restrictions apply

13. Saving for Retirement
Ways to Save
Annuities
• Tax deferred investment contract
• Multiple payout options:
– Lump sum, payment over a number of years, payment
over your lifetime
• You have the freedom to decide how the money is paid out
• Can invest as little or as much you want

14. Saving for Retirement
Planning Tips
• Start early!
• Invest for the long term
• Don’t cash out your 401(k) when you change jobs—
it could be rolled into a new employer’s plan
• Don’t borrow against your retirement plan unless
absolutely necessary

15. Saving for Retirement
Planning Tips
• Supplement retirement accounts with mutual funds,
savings accounts, and other investments
• Cut your current expenses
• Delay retirement
• Invest more aggressively—this will expose you to
higher volatility

16. Saving for Retirement
Questions?