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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:

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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