Hello and welcome. If you're listening to this webinar, then I think I know you. I know that you are, if not sooner later, someone who at some point in your life wants to retire, and I know that you're serious enough about this goal, that you want to make sure that you're up to speed with the ever changing retirement planning landscape.

And that you're aware of all of the best practices that should be in place when it comes to planning for the longest vacation you'll ever have to pay for, which is your retirement. Hi, I'm Jennifer Rivera, an Employee Education Advisor with PNC Bank, and over the next 30 minutes I'm gonna take you through these five essential keys to help you achieve a successful retirement.

We'll begin with assessing your current financial situation, the importance of starting your retirement plan now, investing with clear goals, understanding Social Security benefits, and staying the course, which means staying committed to your plan. This roadmap will guide us through the foundational steps that should be taken to secure your retirement future. And as I proceed, keep in mind that these keys are designed to provide a comprehensive approach to preparing not just financially, but also emotionally for retirement. So let's begin.

By taking a clear eyed look at where you stand now, assess the situation, and this is key, number one. It's crucial that you understand your current financial standing, and this foundational key will determine all subsequent decisions that you'll make, and it's also gonna give you insight into the strategies you may need to deploy to keep your retirement planning goals realistic and also achievable. To assess your situation, start by by evaluating current assets, including retirement and non retirement accounts. And then next, review your liabilities and spending habits. Are you living within your means?

Are you following a budget? Do you have a spending plan? And then finally consider expected future liabilities such as maybe supporting others, mortgage status, healthcare costs. Taking time to answer these questions now will help you clarify how much you'll need to fund your retirement effectively.

No matter what your age is or what your career stage is, shown here are two important things that you need to know about yourself. And if you don't know, then now's the time to consider them. What will be your sources of income in retirement and what is your time horizon? It's important to understand how much you can expect to receive from Social Security if that's relevant for you, your employer's sponsored plans, and whether or not you plan to work part time during retirement or if you're healthy enough. And then also consider when you plan to retire and how long you think your retirement might last. These insights really are essential in order for you to develop a realistic retirement funding plan.

Now, after you've laid the foundation with the how much and how long, well then you can start considering how you feel about the investing part. How comfortable are you with investment risks as you plan for retirement?

Knowing this is helpful for you or your financial advisor if you work with one, in determining your appropriate allocation and your retirement investment vehicles. And don't forget this last step. Review or create it if you haven't done so already, any important estate planning documents like life insurance policies, beneficiary designations, and a will,

Or possibly potentially a trust just to make sure that they align with your current wishes. These steps are vital to protect your financial future, it's protection, but it also can provide you and your loved ones with peace of mind. Key #2: is to start now, and if you have already started, great, keep going! But do take some time to periodically assess if you could be doing more or perhaps even fine tune your current strategy. The things that we want: our goals. These can change over time.

And if there's a price tag attached to what we want, and there usually is, we need to incorporate this into our budget and our spending plan. Balancing our wants versus our needs is a key part of effective budgeting. Before purchasing something that you want, that's not really a part of your budget or spending plan, then try asking yourself these questions to critically evaluate your spending priorities and ensure your financial plan reflects your values. Go ahead try it. Before your next big purchase or maybe even a small one, you might find that after asking yourself these questions, you may choose to do something differently, or at the very least be reassured that the purchase you're about to make aligns with your values. This is a conscious approach, and this can help you allocate your resources wisely and also help you avoid unnecessary expenses that could derail your retirement goals. Many of you listening have heard of these powerful strategies when it comes to saving for retirement in an employer sponsored retirement plan, and even if you have, it is worth repeating, so I'm going to. Why? Because leveraging the power of compounding, dollar cost averaging, and utilizing and maintaining the 1% method quite simply works. It is widely held that these methods help retirement plan savers well save more. Compounding, it's an investment that grows by earning on its own earnings like a snowball, rolling downhill, getting larger and larger, and this benefits from starting early.

The phrase I often use is sooner and smaller rather than larger and later for retirement savings, and that's the power of compounding. Dollar cost averaging helps to smooth out the market volatility because you're investing consistently, and I'll go into more detail on that in a moment. And the 1% method, will this encourages you to gradually increase your contribution annually. So these three techniques, these help your money work harder over time. A little more on compounding:

Shown here is an example of how powerful the effect of compounding can be. This chart compares two investors and it shows the power of starting early. Investor A contributed $2,000 annually for ten years and then stopped while Investor B started later and contributed double for 20 years.

And despite having less overall, Investor A, shown on the dark blue column on the right, well they ended up saving significantly more due to the benefits of compounding. And this highlights why starting early is one of the most effective retirement strategies.

If you currently have retirement money invested in the markets today, then you may have recently experienced market volatility firsthand. But if you've been continuing to make regular contributions into your retirement plan, e.g., through payroll deductions, well, you've been reaping the benefit of what I call the

silver lining, and that is dollar cost averaging. Dollar cost averaging involves investing a fixed amount regularly regardless of market conditions. This approach allows you to buy more shares or units when prices are low, and fewer when prices are high, and this can lower your average cost per share or unit over time. This table shown here illustrates this concept with monthly investments and share purchases that emphasize the advantage of consistent investing.

I have been having the, 'how much should I be saving in my retirement plan' conversation with many and for a very long time. And many of you want to know if the amount that you're currently saving is higher, lower or within the range of how much everyone else is saving.

And I get it. It is a good gauge to compare your savings rate against the collective, but it can be problematic if you're content that you're saving at a higher than average rate than most, but in reality, maybe not saving enough to support the lifestyle that you envision in your own retirement. So let me give you some specific numbers to aspire to or to use as a gauge.

If you're under the age of 25, then aim to save 15% of your paycheck by age 25. But if you're older than age 25 as a general rule of thumb, we recommend an annual savings goal of ten to 15%.

Now, be sure to include any employer match or profit sharing contributions if the contribution percentage applies to you, make sure that you include it. And then the other thing to reach your percentage goal and still be able to afford to pay for today, is to implement that 1% method. With this strategy, you increase your savings rate annually by at least 1% until you reach your percentage goal, and if you can afford to go higher, then go up, go higher.

There, but at least 1% every year until you reach the goal that gets your income in a range for you to be able to retire com comfortably. This is a disciplined approach, but it can help you build substantial retirement, while making sure that the savings process is more manageable and sustainable. Key #3: Invest with your goals in mind. This key highlights the importance of aligning your investment strategy with your personal financial goals, your time horizon, and your risk tolerance to be able to optimize your retirement savings. I mentioned earlier that successful investing depends on understanding your time horizon, how long you plan to invest. It's also dependent on your risk tolerance and how much risk you're willing to accept.

So, when looking at asset allocation, this divides your investments among the three major asset classes, stocks, bonds, and cash, and this mix should be tailored based on those factors to be able to balance the growth potential, but also the risk.

Having the proper asset allocation is a big deal. Widely held studies report that it's responsible for more than 90% of overall investment return. The pyramid shown here illustrates the relationship between risk and potential return across those three major asset classes of cash, bonds, and stocks. Cash and cash equivalents carry the lowest risk, but also the lowest potential return.

Bond funds offer moderate risk and moderate return, and stock funds present the highest risk but yes, also the highest or the greatest potential for growth. So, if we understand the role of these three categories, these assets, these stacked correctly for you for how you feel and how long you have can help you build a portfolio that matches your comfort with your risks and also puts you in line with your retirement income goals. So, here we have an example of asset allocation profiles that range from the least exposure to risk, to the most exposure to risk, from preservation to aggressive. Each profile balances bonds, stocks, and cash differently to be able to reflect varying risk tolerances and investment objectives. These profiles serve as guides to help you choose an allocation that fits your retirement timeline and your comfort level with market fluctuations.

Market timing is a trading strategy that relies on knowing when to buy and when to sell an investment and at what price. It's really a lot of decisions to make and unless you have that crystal ball that can accurately predict the future, and you don't, then it relies on an education guess, at best, maybe luck.

You can't really rely on trying to time the market as much as you can on the other factors like proper asset allocation, diversification, and knowing your time horizon. But with all of that said, when it comes to retirement savings, studies show that it's time in the market versus timing (ING) t-i-m-i-n-g the market that fares better over a long term investment like retirement planning. Trying to time the markets is challenging, and if it's done correctly, or incorrectly, I should say, then it could be pretty costly. And so what this table is showing is just how missing a few of the best market days over the last 20 years drastically reduces investment returns. If $10,000 was invested in the S&P 500 over the last 20 years until June 30th of 2025, then an investor who stayed fully invested would have a 7% average annual return, and their $10,000 would grow to about $39,000. That's almost quadruple growth. But if this investor tried to time the market, and they got out and they missed only the best ten days out of the last 20 years, well, now that $10,000 investment would only earn 4.7% average annual return, and while the $10,000 still grew, it only grew to about $25,000, not $40,000. So, the message here is staying fully invested through market ups and downs is the best practice for a long term investing strategy like retirement.

Knowing the type of investor that you are is also important. Some of you prefer to be hands-on and active while others of you prefer to be more hands-off and passive. There is NO one method that is better than the other. What is most important is that you invest using a method that is the most comfortable for you. Passive or hands-off investing involves selecting target date or asset allocation funds that will automatically adjust over time. This offers simplicity and diversification. Active investing requires hands-on management where you or working with the financial advisor analyzes your fund options, customizes your portfolio to meet your specific goals and your risk tolerance. If your investment style is more passive or hands-off, then a target date fund or an asset allocation fund strategy might be a fit for you.

Target date funds simplify investing by combining stocks, bonds, and cash into a diversified portfolio that automatically adjusts as you approach retirement. This approach removes the guesswork from the portfolio management while ensuring your investments remain aligned with your current retirement timeline. And here's another way to look at it.

This sample guide path illustrates how target date funds gradually shift asset allocation from higher risk stocks to more conservative bonds and cash as your retirement age mirrors. This strategy helps to reduce the risk but also helps you in preserving capital.

It helps you protect your savings during your transition into retirement. Key #4 is Social Security. Understanding Social Security benefits is a vital component of retirement planning.

As it often represents a significant source of income during retirement. While the future of Social Security is uncertain, it is still here, and for many retirees, it plays a significant role in lifetime retirement income.

When it comes to Social Security, you'll want to understand the basics. Social Security eligibility requires 40 quarters of wages that are subject to payroll taxes. They don't need to be consecutive.

The amount you can expect to receive your benefit is calculated based on your highest 35 years of earnings. The program's sustainability is supported by investments in U.S. government bonds, but by 2035, that income is projected to cover only about 83% of costs. And this is why earlier, back in Key #1, I highlighted the importance of additional retirement savings.

You can view your own Social Security Statement online, track your earnings, and your estimated benefits. For those who are age 60 and older without an online account, statements are mailed three months before your birthday.

But setting up an online account does require being at least age 18, having a Social Security Number, a valid U.S. mailing address, and an email address. This access helps you plan more definitively any potential income.

You could expect to receive from Social Security. If you haven't yet done so, it's a good idea for you to access your own Social Security Statement. To give you an idea of what you can expect to see, this slide provides a detailed example of a Social Security Statement.

It shows how benefits are calculated based on your earnings history and credits earned. It also highlights the importance of reviewing your earnings record for accuracy because this directly impacts your benefit amount. What I like best about this report is that it's personalized for you and it's coming right from the source. Social Security, that makes it more accurate than a generic online calculator or estimate or projection that you may find from another source. Reviewing your estimated Social Security retirement benefits now is essential in determining how much additional savings you may need to come up with or save for. Benefits can be claimed starting as early as age 62 to get a Social Security check. The higher monthly amounts are if you delay claiming and you can delay all the way up until age 70. So, this slide's chart illustrates how benefits increase the later you wait to claim your benefit, and that helps emphasize the value of strategic planning. Now, you've made it this far into the steps for a successful retirement. So, this next step should be a breeze because it requires you to do absolutely nothing.

Simply stay the course. Better said, keep maintaining your previously covered four keys, having those strategies in place. But this 5th key requires that you just simply maintain a consistent investment strategy and regularly monitor your progress even perhaps especially during periods or times of high market volatility. The movement of a market cycle is happening all the time. But when the high becomes low, it can feel sometimes like it maybe a little too much for us to stomach. This diagram illustrates the emotional ups and downs investors often experience during market cycles. When our investments are growing, we feel great about it from optimistic to thrilled, maybe even before it, top of the roller coaster. But when the market cycle slows, and our investments seem to stop growing or when we begin to experience negative returns, we may begin to feel anxious and question if we should do some thing differently.

Should we sell? Should we switch our investments? If our investments continue to fall, we might even begin to feel fear, desperation, and maybe even despondency thinking, well, maybe the markets just aren't for me. If we don't make any sudden moves or trade based on our emotions, as time moves forward and the market cycle begins its upward cycle once again, if we survived it and didn't get out at the bottom, well then we may get a few more statements under our belt that shows growth is back again, and we begin to feel hopeful, relieved, and the cycle begins over and over again and so on. This is normal. Market cycles of growth and contraction are a part of long term investing. Maintain a long term perspective and avoid impulse decisions like panic selling low or band wagon buying high as emotional trading can harm your retirement savings.

Shown here are some common mistakes investors tend to make during periods of high market volatility. Panic selling at low prices just talked about this one. Letting news headlines drive our decisions.

Stopping our contributions and failing to diversify. Avoiding these pitfalls by staying disciplined and diversified helps protect your investments and it supports steady progress towards retirement.

Staying on course means regularly reviewing your retirement plan, making adjustments as needed based on changes in your personal situation or even financial markets. Life events can have an impact on your goals. So, it is important to remain flexible while keeping your long-term objectives in focus to ensure continued progress towards your retirement goals.

So, in summary, here are your five keys to a successful retirement. Understanding your current financial needs, start saving early and increase your contributions over time.

Set clear investment goals, factor in Social Security benefits, if they apply. Maintain a consistent investment strategy staying the course. Once you have your game plan in place, stick with it. If you need help fine tuning your strategy leverage the online tools of your retirement plan provider or reach out to a financial professional for help. There are many goals and decisions that we have to navigate throughout our financial lives.

Fortunately, though, when it comes to paying for that long retirement vacation, once these five keys are in place and maintained, that foundation is set, and then you can cruise into your retirement. Thanks so much for joining.