Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com

1. The Future of Retirement Houston Forum January 27, 2009 by Steve Vernon, FSA President, Rest-of-Life Communications

4. The Future of Retirement… is Work!

10. Current State Existing 401(k) Balances May Be Inadequate Source: Average 401(k) balances for 20 million 401(k) participants, 12/312006. EBRI Issue Brief #308 Tenure in Years $190,593 $157,069 $93,636 $51,268 $31,914 60s $167,806 $174,272 $99,794 $54,491 $32,532 50s 30+ 20 - 30 10 - 20 5 - 10 2 - 5 Age Group

11. Current State Defined Benefit Plan Participation Has Fallen Dramatically in Private Sector % of workforce participation by plan type Source: Center for Retirement Research at Boston College

12. Retiree Medical Coverage Drops in Private Sector Source: The Kaiser Family Foundation, 2006 Employer Health Benefits % Employers offering coverage

15. Amount Respondents Say Needed for Comfortable Retirement source: EBRI 2008 Retirement Confidence Survey 18% $1 million or more 23% $500,000 - $999,999 16% $250,000 - $499,999 25% Under $250,000 12% Don’t know

16. Methods for Determining Savings Needed for Retirement source: EBRI 2008 Retirement Confidence Survey 4% Other 2% Desired lifestyle 4% Worksheet or form 7% Online calculator 9% Read or hear amount 19% Do own estimate 19% Ask advisor 43% Guess

19. Life Expectancy at Age 65 Source: Society of Actuaries

20. Workforce Participation Men Age 65+ Source: Bureau of Labor Statistics

43. Will these be your employees and plan participants in 10 years?

46. The Future of Retirement Q&A