1 your 2018 . retirement planning guide What You Need to Know and Do Appalachian State University East Carolina University Elizabeth City State University Fayetteville State University North Carolina Agricultural and Technical State University North Carolina Central University North Carolina State University North Carolina School of Science and Mathematics University of North Carolina at Asheville University of North Carolina at Chapel Hill University of North Carolina at Charlotte University of North Carolina at Greensboro University of North Carolina at Pembroke University of North Carolina Wilmington University of North Carolina School of the Arts Western Carolina University Winston-Salem State University Other Affiliates: University of North Carolina Health Care University of North Carolina Press What's Inside Preparing for retirement 2.
2 Will You Be Ready? 6. Getting the Most from your Benefits 8. Options for Taking your Benefit 15. Social Security and Medicare 22. Countdown to retirement 26. Resources 30. 1 your retirement planning guide | UNC System Preparing for retirement 2 your retirement planning guide | UNC System Preparing for retirement is about your vision for the future and saving funds to make your dream a reality. Building a retirement nest egg is a process that spans your entire career. And, because people are living longer than ever before, that nest egg likely will need to last you 20 years or more. Did you know? In addition to the processes and At the University of North Carolina System (UNC System), we understand details outlined in this brochure, how important it is to save for your retirement , so we offer benefits that each UNC System constituent support your savings goals.
3 And we're here to help you make informed institution has a separate decisions to smooth the path ahead. process for initiating retirement To get the most out of your retirement savings, you'll need a strong plan related to institution-specific that carries you through retirement and helps your savings continue to grow benefits. For details, contact once you retire. your institution's HR Benefits Representative. Use this brochure to understand: your State of North Carolina and UNC System retirement benefits Key details about planning for retirement What to do when you are ready to retire 3 your retirement planning guide | UNC System Why You Need a Plan planning for retirement is all about you.
4 Who do you want to be and how do you want to live? How will you fund your life? The time to plan is now. Here are a few of the reasons why planning is so important: Even if you're close to retirement , it's never too late to save as much as you can. your money can grow over time through interest and investment earnings. The cost of living continues to rise. your priority is paying for today's needs, but if you don't set aside money now, your funding gap gets bigger each year. The amount of pre- retirement Most people assume they will be able to get by on less money in retirement , but that may not be income experts estimate you the case. When asked about spending in retirement , 30% of retirees say it is unchanged from their working years.
5 It's best to go ahead and do the math to set a target. will need to maintain the same You may think you'll work into retirement . While this makes sense, life can sometimes get in the lifestyle in retirement . way. In a recent study, 47% of retirees say they retired unexpectedly, often due to health problems, disabilities, downsizing or business closure or having to care for a loved one. When you save automatically, you'll adjust to your new take-home pay while you have a pot of money building for you. 4 your retirement planning guide | UNC System your Sources of retirement Income: The Big Picture your retirement income should not come from just one place you need several sources.
6 Consider these when you develop or double-check your plan: TSERS/ORP. retirement Program State of North Carolina Government-provided and UNC System-provided Additional benefits (paid into benefit plans and personal savings throughout your career). programs Mandatory retirement Plans Social Security will provide a Outside savings plans, such either TSERS (Teachers' and State portion of your retirement income, as an IRA, retirement savings Employees' retirement System) though it is not intended to provide from a previous employer or or the ORP (Optional retirement all of your income in retirement . other investments. Program). Medicare will provide your primary your spouse's retirement Supplemental retirement Plans health care coverage (when you savings and investments, if (UNC System 403(b) Plan, NC 401(k) are age 65 or older), although you are married.)
7 For people currently age 65. Plan, NC Deferred Compensation coverage under the State Health Inheritance and any life or or older, Social Security will Plan (a 457(b) Plan) and the UNC Plan of North Carolina for eligible other insurance policies. System 457(b) Plan). participants can help pay medical only provide 30% 35% of their Retiree health insurance under the expenses in retirement . income in retirement . State Health Plan of North Carolina , This means you will have to save the remaining if you are eligible. 65%-70% of your retirement income through savings vehicles like TSERS or the ORP, Supplemental retirement Plans and your personal savings. Generally, your TSERS or ORP.
8 Savings may cover roughly 45% 50% of your retirement income, and the remaining 15%- 25% will need to come from other sources of personal savings. 5 your retirement planning guide | UNC System Social Security Will You Be Ready? retirement readiness is defined by your financial situation and so much are some factors to help you think about what it really means to be ready to retire. 6 your retirement planning guide | The University of North Carolina your finances Can you afford to retire? When you add up your sources of income, will you have enough to last Did you know? you the nearly 20 years you could enjoy in retirement ? Also think about major expenses, such as a mortgage.
9 Remember that retirement may bring new expenses, like travel or health care. According to the most recent American Time Use Survey from the Bureau of Labor Statistics, your family Americans ages 65 to 74 spend Do you still have children to support, or family to visit with your new free time? If you're married, only about more hours per you'll need savings and a vision that works for both of you. day on leisure activities than the rest of the population. There may your lifestyle be more demands on your time If your goal is to enjoy retirement , how will you spend your days? Hobbies, travel and even another job all impact how much money you'll need for your retirement .
10 Than you think, so plan ahead now to ensure you make the most of the leisure time you do have in your health retirement ! Whether you are healthy now or know that you'll have health issues to address in retirement , you Source: need to be prepared to spend more on health care. According to the AARP, a 65-year-old couple proaging-network/study-reveals-how-retir ees- retiring this year will need approximately $240,000 to cover future medical costs, not including the spend-their-time/. costs of long-term care. your home Do you plan to stay in your home? If so, you may need to renovate. Would you rather downsize, or join a retirement community? 7 your retirement planning guide | UNC System Getting the Most from your Benefits Now that you have a sense of the various retirement income sources and what you will need to consider as you plan to retire, let's take a closer look at the UNC.