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Biblioteka

3.09 The Importance of Investing for Retirement

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Posljednje ažuriranje 9 months ago
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Learning Objectives

Students will be able to:

  • Explain what retirement means through a financial lens

  • Investigate how investing can be a powerful tool to meet their retirement goals

  • Understand what Social Security is and why most Americans cannot rely on Social Security alone for retirement

  • Explore factors that can impact how much they might need in retirement and their ability to meet their retirement savings goal

National Standards for Personal Financial Education

Earning Income

  • 6c: Describe the benefits they receive, or may receive in the future, from government-collected tax revenue

  • 10a: Identify different potential sources of retirement income

  • 10b: Describe the importance of having multiple sources of income in retirement, such as Social Security, employer sponsored retirement plans, and personal investments

  • 10d: Report the average benefit paid to a retiree living on Social Security today

Spending

  • 1a: Identify their short-term and long-term financial goals

Learning Objectives

Students will be able to:

  • Explain what retirement means through a financial lens

  • Investigate how investing can be a powerful tool to meet their retirement goals

  • Understand what Social Security is and why most Americans cannot rely on Social Security alone for retirement

  • Explore factors that can impact how much they might need in retirement and their ability to meet their retirement savings goal

National Standards for Personal Financial Education

Earning Income

  • 6c: Describe the benefits they receive, or may receive in the future, from government-collected tax revenue

  • 10a: Identify different potential sources of retirement income

  • 10b: Describe the importance of having multiple sources of income in retirement, such as Social Security, employer sponsored retirement plans, and personal investments

  • 10d: Report the average benefit paid to a retiree living on Social Security today

Spending

  • 1a: Identify their short-term and long-term financial goals

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.

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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

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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

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

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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.

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

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

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

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

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

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Why are people worried about the future of Social Security?

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

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

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

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

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

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