Want to understand how our population is aging and what it means for you? Want an Action Plan for retirement? Use Abaris' simple tutorial to get answers to these questions and more. Science has proved it: people today are living longer than ever before. But as average life expectancies have been rising, the mean retirement age has stayed more or less the same. Since 1940 the average life span has gone up about 17 years, now at about age 79, yet the average age of retirement is more or less the exact same, about 65 years old. That leaves a big gap of your life filled without a paycheck, which is why Social Security, pensions and retirement income products are so important. Despite the importance of Social Security and pension plans, fewer people than ever have pensions today and Social Security rarely covers all of a retiree’s expenses. On average, money received from Social Security only makes up about 42% of an individual’s pre-retirement income. Additionally, Social Security reserves are suffering from underfunding, and are expected to run out by 2033 under current law. Pension plans are great in that they guarantee a lifetime income, but they’re becoming more and more rare. Today, the predominant form of individual retirement savings is in 401(k)s and IRAs. But those plans don’t automatically provide lifetime income, leaving people to struggle with longevity risk: the chance that you live far longer than you expect. If you lead a long healthy life, as you certainly hope to, you’d end up running out of your savings.One solution? Deferred income annuities. A deferred income annuity is a way of insuring against longevity. You make a payment, or series of payments, to an insurance company. Insurance companies are able to pool risk and use the market for pooling and protection in ways that you can’t on your own. This allows them to pay you an annual income, beginning at some future date, for the rest of your life. Surely stocks tend to yield a greater financial return, but with a deferred income annuity the value is in the guaranteed protection and the peace of mind. Deferred income annuities aren’t right for everyone. If you’re younger than 45, in below average health, most concerned about passing money onto your heirs, able to “self-insure” off the wealth of your investment income, or if you haven’t saved enough and need to keep the money you have in case of emergency then you’re probably not the best fit for a deferred income annuity. But otherwise, you’re looking like a great candidate.

1. RETIREMENT
YOUR MONEY
www.myAbaris.com @myAbaris

2. Let’s have an honest conversation,
About aging, the retirement income market, and what it means for your money.
RIGHT NOW!
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3. PEOPLE ARE LIVING A LOT LONGER than ever before.
Average 65 year old lives to or is expected to live to
78
83
85
88
BORN IN
MALES
AGE
1900 1950 2000 2050
FEMALES
BORN IN
AGE
1900 1950 2000 2050
83
85
88
90
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4. BUT RETIREMENT AGES HAVE STAYED MOSTLY THE SAME, meaning
people are spending more of life without a paycheck from work.
TYPICAL RETIREMENT AGE
1940 65
2014 66
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5. SOCIAL SECURITY covers some of the gap, but it has two major issues.
When Social Security reserves
are expected to run out.
Median amount of Social Security
payments relative to someone’s
preretirement income.
UNDERFUNDING FOR MOST, IT ONLY REPLACES A
SMALL PORTION OF INCOME LOST
2033 42%
1 2
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6. AND PENSIONS ARE GREAT! That’s assuming you’re one of the lucky
few to still have one.
1980 1990 2000 2010
PERCENTAGE OF AMERICAN WORKERS COVERED BY PENSION PLANS100
80
60
40
20
Pension plans have
become increasingly rare
over the last generation.
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7. TOTAL ASSETS IN IRAs AND 401(k)s
YEAR
ASSETS
1995 2000 2005 2010
3
5.5
7
9.3
The huge growth
of 401(k) balances
means more assets
for Americans to
draw in the future.
In trillions of dollars
SO WHERE DOES THIS LEAVE US? More reliance on Defined
Contribution plans like 401(k)s and IRAs in the future.
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8. DEFINED CONTRIBUTION PLANS HAVE A LOT GOING FOR THEM.
TAX DEFERRAL
With compounding, means your money grows much faster before you pay a dollar of taxes.
PORTABILITY
Easy to take from one employer to another or roll your 401(k) to an IRA.
INVESTMENT FLEXIBILITY
Lots of options about how to invest your money and more are appearing every day.
MANY OTHERS
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9. But one thing defined contribution plans don’t automatically do is
provide you with LIFETIME INCOME...
SOCIAL
SECURITY
0001
PENSIONS 401(k) PORTFOLIO OF
STOCKS AND BONDS
Paycheck for life
0001
Made out to: You
Memo Line: Monthly Signed: U.S. Government
0001
Made out to: You
Memo Line: Monthly Signed: Former Employer
Paycheck for life Most people withdraw money as they
need it and hope it lasts
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10. This is where the concept of longevity
risk and annuities comes into play.
LONGEVITY RISK
lon·gev·i·ty risk (noun): chance you
live a lot longer than you expect.
ANNUITY
an·nu·i·ty (noun): a fixed sum of
money paid to someone each year,
usually for life.
PROBLEM: ONE SOLUTION:
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11. THINK OF YOUR FUTURE SELF. You’re 65 years old and you just retired.
Let’s say you have $900,000 in retirement savings. How much should you live off of
that first year?
The single biggest question that will inform this decision is...
HOW LONG DOES YOUR MONEY NEED TO LAST FOR?
$30,000? ? ?
? ? ?$94,000
$42,000
$120,000
$70,000
$150,000
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12. 85
$1M $1M
750K SAVINGS SPEND
DOW
N
SAVINGS SPEND
DOW
N
750K
FOR LIFE
ANNUITY KICKS
IN AT AGE 80
500K 500K
250K 250K
0 0
65 6570 7075 7580 90 80 85 90
NO DEFERRED INCOME ANNUITY DEFERRED INCOME ANNUITY
STARTING AT AGE 80
And that depends on HOW YOU’VE ALLOCATED YOUR PORTFOLIO.
Strategy: Betting you don’t live too long. Strategy: Try to live a long and healthy life
knowing you’ve protected yourself if you do.
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13. VS
Prepare for the possibility that
you’ll live a long time.
These two strategies have very different outcomes in terms of your
PEACE OF MIND.
STRATEGY STRATEGY
Bet against living a long time.
RESULT: OUTLIVE YOUR MONEY OR AT
LEAST WORRY A LOT THAT YOU WILL.
RESULT: CREATE FINANCIAL AND
PERSONAL PEACE OF MIND.
WHICH DO YOU CHOOSE?
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14. The insurance company pools risk and is able to use the markets to protect itself in
ways you can’t on your own.
A DEFERRED INCOME ANNUITY is simply
insurance against longevity.
A lot of the value of a Deferred Income Annuity comes from the Peace of Mind you get.
In most cases, your financial return won’t be as good as in stocks or bonds.
That’s because you’re paying to protect yourself against the occurance of an
event (in this case living a really long time).
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15. But just because a Deferred Income Annuity is insurance, it doesn’t
mean you shouldn’t BE A HAWK ABOUT GETTING THE BEST
ANNUITY FOR YOU AT THE BEST PRICE.
BE AN INFORMED CONSUMER. Since you’re reading this, you’re probably
well on your way.
1
FIND THE SIMPLEST, LOWEST FEE ANNUITIES. They’re the ones that are
right for most people.
2
Make sure you COMPARE ALL PRODUCTS IN THE MARKET using a platform
like Abaris.
3
No matter where you purchase an annuity, GET A 2ND OR 3RD OPINION
before making a final decision.
4
KNOW HOW MUCH THE PERSON SELLING YOU THE ANNUITY IS GETTING
PAID for the sale.
5
FOLLOWTHESESTEPS
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16. But just like every financial product, DEFERRED INCOME ANNUITIES
ARE NOT FOR EVERYONE.
You are too young to purchase one (generally less than 45 years old).
You haven’t saved enough for retirement and need to keep the money you do have
for emergencies.
You’re wealthy and can basically self-insure by living off your investment income.
You are in below average health.
You are looking to pass on money to your heirs.
SOME REASONS THEY MIGHT NOT BE RIGHT
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17. So ...
You have convinced me of the need to
protect myself against longevity,
NOW GIVE ME A PLAN!
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18. ACTION PLAN
If you’re under 45 years old:
SAVE!
Take risks in the equity market. In the long-run, stocks have historically had
higher returns.
Avoid anything that has high fees or you don’t understand.
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19. ACTION PLAN
If you’re age is 45-64:
KEEP SAVING! These are your prime earning years. They should also be your prime
saving years.
Now is the best time to lock in guaranteed lifetime income. If you don’t have a
pension and don’t expect Social Security to cover all of your expenses, think about
a Deferred Income Annuity.
Keeping most of your portfolio in the stock market often is sound advice, but ask
your advisor what to do based on your specific situation.
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20. ACTION PLAN
If you’re 65 or older:
You should now have a good handle on your expenses. Consider buying an annuity
that will cover those expenses if you live past 80 or 85.
For the portion of your portfolio that you don’t annuitize, make sure you have a
plan for how quickly you plan to spend it down.
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21. Annuities are insurance, not an investment.
At Abaris, we are on a mission to change the conversation around
annuities and longevity.
OUR CORE BELIEFS
You need lifetime income and most people need more than Social Security
alone provides.
We’ll work tirelessly to make the annuity market simpler and more transparent, so it
works better for you.
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22. If you’d like personalized advice on whether
an annuity might be right for you
We’re always excited to hear from you, REALLY!
JUST CONTACT OUR TEAM
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23. END NOTES
Slide 3: Source: Social Security Administration Life Tables. Available at ssa.gov.
Slide 4: Sources: Social Security Administration and 2010 U.S. Census. Note: Retirement based on when Social Security benefits start for someone entering
retirement that year.
Slide 5: Source: 2014 Trustee’s Report. Available at ssa.gov. (left)
Center for Retirement Research (Munnell and Soto, 2005). (right)
Slide 6: Percentage of Employees Participating a in Employee Benefit Programs: Medium and Large Private Establishments Sources: EBRI Data book
based on data from U.S. Department of Labor, Bureau of Labor Statistics, Employee Benefits in Medium and Large Firms, 1980 and 1985 (Washington,
DC: U.S. Government Printing Office, 1981 and 1986); Employee Benefits in Medium and Large Private Establishments, 1991, 1993, 1995, and 1997
(Washington, DC: U.S. Government Printing Office, 1993, 1995, 1997, and 1999); National Compensation Survey: Employee Benefits in Private Industry
in the United States, 2000 Supplementary Tables (Washington, DC: Bureau of Labor Statistics, 2003); National Compensation Survey: Employee
Benefits in the United States, Summary, March 2003-March 2007 (Washington, DC: Bureau of Labor Statistics, 2003-2007). U.S. Department of Labor,
Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in the United States, Summary, March, 2008-March 2010 (Washington,
DC: Bureau of Labor Statistics, 2008-2010).
Includes workers covered but not yet participating due to minimum service requirements. Does not include workers offered but not electing
contributory benefits. The Bureau of Labor Statistics’ (BLS) survey scope was expanded significantly in 1988 to include private, nonfarm establishments
employing 100 or more workers. The former survey coverage, which previously included full-time employees in establishments with 50, 100, or 250
workers, depending on industry, was the only data captured prior to 1988. The expanded survey coverage, which in 1988 and after includes full-time
employees in private, nonfarm establishments employing 100 or more workers in the District of Columbia and all states except Alaska and Hawaii, is
referred to as Scope B. In order to permit comparisons of 1988 findings with those of prior years, BLS also tabulated selected 1988 survey responses
for old scope establishments. In 1991 and following years, the survey includes establishments in Alaska and Hawaii. For the purpose of comparison
data for the Scope A period has been rebased based on the ratio of Scope B to Scope in 1988 (when both surveys were conducted). In 2000, BLS
greatly expanded the survey combining the medium and large with the small establishment surveys. This is referred to as Scope C. The data in Scope C
is representative of combined full-time and part-time employees in private industry.
Slide 7: Source: Investment Company Institute. Available at icifactbook.org.
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24. DISCLAIMER
The information contained in this presentation, is provided for general informational
purposes as a convenience to Abaris Financial Inc. customers and Internet users and is
based upon information generally available to the public from sources believed to be
reliable. Although we believe the information provided herein is reliable, we have not
verified this information and we do not guarantee its accuracy, completeness, timeliness or
availability. Any examples shown in this presentation are purely hypothetical and have been
included for demonstrational purposes only. This information is subject to change without
notice. This information is not a substitute for obtaining advice from a qualified professional.
Therefore, you should not rely solely upon this information in making any decision. This
information is not and does not constitute an offer to sell or a solicitation of an offer to buy
any security, service or product.
Abaris Financial Inc., Philadelphia, PA is neither a registered broker-dealer nor a registered
investment adviser. Nothing in this presentation, including links to other material, is intended
as legal or tax advice. Abaris Financial Inc.’s Licensed Producers do not give legal or tax
advice. Taxpayers should seek advice based on their particular circumstances from an
independent tax advisor.
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