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Plan Well, Retire Well: Your How-to Guide. University of Illinois Extension Consumer & Family Economics Team Contact: Dr. Angela Lyons October 21, 2002. Project Background. Project began Fall 1999 Funding Source: Lauritsen Family Foundation Work group team assigned to project

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Plan Well, Retire Well: Your How-to Guide

University of Illinois Extension

Consumer & Family Economics Team

Contact: Dr. Angela Lyons

October 21, 2002


Project Background

  • Project began Fall 1999

  • Funding Source: Lauritsen Family Foundation

  • Work group team assigned to project

  • Research and development began Winter 1999


What do people need to know to effectively save money and plan for retirement?

What helps younger people save money early?

How can family economics educators best provide information to help people plan for retirement?

Questions We Asked


Gathering Information

  • Interviews with financial experts

  • Review of literature and demographics

  • Storyboard exercise with Illinois educators

  • Focus groups with Illinois citizens


Results of Research Review and Expert Interviews

  • Retirement preparation is often inadequate

    • Amounts accumulated for retirement are low

    • Begin saving too late

    • Prepared for an unrealistically short retirement

  • Strategies help with retirement preparation

    • Using tax-deferred plans regularly

    • Writing goals is important


Storyboard Session

  • Explore retirement planning questions and concerns of target audience.

  • Suggest possible methods for reaching audience: places, delivery method, etc.

  • Brainstorm possible content for a retirement curriculum.


Focus Group Sessions

  • Five focus groups conducted in Illinois

  • Discussion themes included:

    • Current retirement planning and savings behaviors

    • Jobs and retirement planning

    • Information sources for financial information


Current Retirement Planning

and Savings Behaviors

  • Building wealth

    • Large variability in amount saved

    • Employer-sponsored plans frequently used

  • Risk management

  • Barriers

    • Difficult to save money

    • How much is enough?

    • Unknown medical costs


Jobs and Retirement Planning

  • Tax-deferred plans often used

  • Job transitions

    • “I cashed one [retirement plan] out and one was for so little money I think it has just slowly dwindled away.”

    • “I quit a company at 9 ½ years and every bit of that is gone.”


Information Sources

  • Pros and cons of employer-provided information

  • Preferred sources: family, friends, Internet

  • Trust is important

    • “… I have trouble trusting. How do I know if that person is telling me the right thing? How do I know if the information is right and what’s not? … I don’t know who to trust.”


Design for Plan Well, Retire Well

  • Importance of planning for retirement early

  • Keep it simple

  • Preferred delivery method: Internet


Time Makes a Difference

Start Saving

Save for Retirement

Choose Investments

Keep Saving

Goal Setting


Time Makes a Difference


Time Makes a Difference


Save for RetirementTax-deferred Plans


Save for Retirement

  • Delaying taxes

  • Tax-deferred plans

  • Save at your job

  • IRAs and more


Choose Investments

  • Investment basics

  • Mutual funds

  • Investment risks

  • Control risk

  • Invest your money

  • Costs of investing

  • Informed investing


Risks associated with Stocks

Market Risk

Business Risk


Controlling Risk Reduces Uncertainty


Dollar Cost Averaging

Invest on a regular basis over extended period of time

Invest the same dollar amount each time

Buy more shares when prices are down, fewer shares when prices are up

Reduces market risk and exchange rate risk


Goal Setting


Goal Setting


Marketing Plan Well, Retire Well


Job Fairs

Payroll Stubs

Alumni Newsletters

Chat Sites

UI Extension Programs


We gratefully acknowledge the financial support of the Lauritsen Family Foundation for this project.


Materials can be accessed at:

http://www.web.ace.uiuc.edu/cfe


Any Questions?

University of Illinois at Urbana-Champaign College of Agricultural, Consumer and Environmental Sciences United States Department of Agriculture Local Extension Councils Cooperating

University of Illinois Extension provides equal opportunities in programs and employment


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