3.09 The Importance of Investing for Retirement

Instructions

QUESTION OF THE DAY: What are the median and average retirement savings for people under 35? 📷5 min
Answer the question on the first slide in the space below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions on the last slide.

4

Your guess: What are the median _______ and average retirement savings_______  for people under 35?

Answer: What are the median_______  and average retirement savings_______  for people under 35?

ARTICLE: What is Retirement? 📷9 min
As you know, investing is a great way to build wealth for your future - especially retirement! Retirement may seem a long way off, but it’s never too early to understand what it is and how you can best prepare for it! Read this article to learn more about what retirement actually is and how you can get there. Then, answer the questions

4

What types of income can you use in retirement to support yourself?_______ _______ _______ _______ 

2

Social security defines the full retirement age as 67 for those born in 1960 or after. Does this surprise you? _______ Why or why not?_______ 

1

While most Americans want to retire, the unfortunate reality is that many don’t have enough saved up to do so. Why do you think this is?

VIDEO: Will Social Security Be Around for Younger Generations? 📷13 min
As the previous article stated, many people rely on Social Security in retirement. However, you may have repeatedly heard from the media that Social Security may not be around for much longer. Watch this video to learn more about Social Security and what its future might look like in the U.S. Then, answer the questions.

*https://www.investopedia.com/articles/retirement/111816/will-social-security-cap-increase-help-it-last-longer.asp 

1

Why are people worried about the future of Social Security?

3

1

While Social Security benefits millions of Americans, the system is not perfect. In what ways is inequality built into the Social Security system?

1

EDPUZZLE: How Much Savings Do You Need To Retire? 📷10 min
You’ve decided you want to start investing for retirement. Awesome! But, how much money do you anticipate you’ll need in retirement? What’s your goal? The answers to those questions depend on a variety of factors and personal preferences. Watch this video to understand how you can determine how much you might need. Follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.

1

2

1

The first step in planning for your retirement is determining a retirement savings goal. Use Nerdwallet’s Retirement Calculator to explore the following scenarios.

12

6

Scenario 2: Angélica
Salary: $75,000 (average for a clinical psychologist with 5–10 years of experience)
Age: 28 years old and hasn't started saving for retirement yet
Retirement Goals: Retire at 67 to receive full Social Security benefits
Retirement Budget: $3,000 per month
Reminder: Set the retirement age to 67 in "Advanced Details" on the left-hand side.
To meet her retirement budget, how much will Angélica need to save total?_______ 
If Angélica saves $950 of her salary per month for retirement:
How much will she have at age 67?_______ 
 b. How short is she in her savings?_______ 
c. How much must she save monthly to reach her goal by 67?_______ 
If Angélica can’t save afford to save $950 per month:
How else could Angélica meet her retirement goal? *Remember, she can’t change the past._______ 
b. What might be challenging about your recommendation in Part A_______ 

8

1

In retirement, it’s common to rely on income from all of the following sources EXCEPT...

1

Which of the following statements is TRUE about the state of retirement in the U.S.?

1

3.09 The Importance of Investing for Retirement

QUESTION OF THE DAY: What are the median and average retirement savings for people under 35? 📷5 min

ARTICLE: What is Retirement? 📷9 min

While most Americans want to retire, the unfortunate reality is that many don’t have enough saved up to do so. Why do you think this is?

VIDEO: Will Social Security Be Around for Younger Generations? 📷13 min

Why are people worried about the future of Social Security?

While Social Security benefits millions of Americans, the system is not perfect. In what ways is inequality built into the Social Security system?

EDPUZZLE: How Much Savings Do You Need To Retire? 📷10 min

In retirement, it’s common to rely on income from all of the following sources EXCEPT...

Which of the following statements is TRUE about the state of retirement in the U.S.?

Eli is planning ahead for retirement. They should consider all of the following factors when determining how much they’ll need in retirement EXCEPT…

QUESTION OF THE DAY: What are the median and average retirement savings for people under 35? 📷5 min

ARTICLE: What is Retirement? 📷9 min

While most Americans want to retire, the unfortunate reality is that many don’t have enough saved up to do so. Why do you think this is?

VIDEO: Will Social Security Be Around for Younger Generations? 📷13 min

Which statement best describes what Social Security is and how it works?

Why are people worried about the future of Social Security?

What solutions are presented to fix the Social Security shortfall? (hint: choose three correct answers)

While Social Security benefits millions of Americans, the system is not perfect. In what ways is inequality built into the Social Security system?

What points from this video can you use to explain why it’s important to invest for retirement?

EDPUZZLE: How Much Savings Do You Need To Retire? 📷10 min

Why will you need slightly more income in each year of your retirement?

How can the length of your retirement impact how much you might need to save for retirement? (hint: choose two right answers)

Which of the following should you do when taking your rate of return into account?

Why does the amount you need to save for retirement increase from 1.5M to over 2.1M in this example?

In retirement, it’s common to rely on income from all of the following sources EXCEPT...

Which of the following statements is TRUE about the state of retirement in the U.S.?

Eli is planning ahead for retirement. They should consider all of the following factors when determining how much they’ll need in retirement EXCEPT…

Which statement best describes what Social Security is and how it works?

What solutions are presented to fix the Social Security shortfall? (hint: choose three correct answers)

What points from this video can you use to explain why it’s important to invest for retirement?

Why will you need slightly more income in each year of your retirement?

How can the length of your retirement impact how much you might need to save for retirement? (hint: choose two right answers)

Which of the following should you do when taking your rate of return into account?

Why does the amount you need to save for retirement increase from 1.5M to over 2.1M in this example?