Great West Retirement Services

Future Withdrawal Plan

At Age 67 Your

PROJECTED Retirement

INCOME MAY Be

$2,914

Monthly

(After-Tax)

Income Sources

My Retirement Account(s)
Pension
Social Security
Outside Assets

Retirement Information used

Edit Cancel


Annual Salary	$50,000
Retirement Age	67
Replacement Income	100%
Social Security	Included


Salary
Retirement Age
Replacement Income
Social Security

Please Enter
a Salary between
$0 - $9,999,999

What Does This Chart Mean?

This chart shows how much income you could have each month in retirement. This number is based on your current salary, how mucch you are saving today, and other retirement informationlisted on this Retirement Income Control Panel. It also shows how much income should cover your expenses in retirement. If you are not saving enough today to cover your future expenses, this chart shows you how much more you need.

If your retirement plan offers Advisory Services, you will see a second bar in the chard on the right. This bar shows the amount of income you could have during retirement if you follow the advice shown in the Paycheck Contribution vand Asset Allocation charts below.

You may also adjust the chart to display your projected retirement income based on different market scenarios: Poor, Fair or Good.

For more information about this chart, please click on the Projection Detainls tab.

Adjust Your Paycheck Contribution

	Current	Proposed
Contribution Percentage	2%	8%
Monthly Retirement Income	$2,914	$4,643
ABC Company Match	4%	8%
Retirement Age	67	67

Adjust Your Asset Allocation

Proposed Asset Allocation
Current Asset Allocation

Adjust Your Paycheck Contribution

	Current	Proposed
Contribution Percentage	2%	8%
Monthly Retirement Income	$2,914	$4,643
ABC Company Match	4%	8%
Retirement Age	67	67

Adjust Your Asset Allocation

Proposed Asset Allocation
Current Asset Allocation

Adjust Your Paycheck Contribution

	Current	Proposed
Contribution Percentage	2%	8%
Monthly Retirement Income	$2,914	$4,643
ABC Company Match	4%	8%
Retirement Age	67	67

Adjust Your Asset Allocation

Proposed Asset Allocation
Current Asset Allocation

What Does This Chart Mean?

This chart shows a recommended annual withdrawal plan based on a forecast of the future value of your different retirement income sources. It demonstrates how much you could withdraw from your various accounts each year to achieve the most favorable tax scenario. For example, the chart may recommend withdrawing less from a tax-deferred 401(k) account early in retirement, while withdrawing more from a Roth IRA, which requires no taxes on withdrawals. The forecasted future value is based on different confidence levels about market performance trends. You can adjust these levels to view the recommended withdrawal plan for different market performance projections. Consult your tax advisor for specific information on your tax situation.

To estimate your projected retirement income, the Retirement Income Control Panel uses several information sources, when available to the Retirement Income Control Panel.

How we use some of these information sources is explained below. Your projected retirement income is calculated by software developed by Ibbotson Associates, Inc., Independent Financial Expert and a subsidiary of Morningstar.

Annual Salary

If your employer provides your salary data to us as part of our role as your retirement plan’s recordkeeper, it will be used in the Retirement Income Panel’s calculation of your projected retirement income and displayed in the “Retirement Information Used” tile in the upper right hand corner of the page. This number reflects your salary before-tax or gross salary. Retirement Income Control Panel assumes that your salary will continue to grow over time at the same rate as inflation. You may edit this salary information by clicking the Edit link at the top of the Retirement Information Used tile.

Retirement Age

For the calculations, Retirement Income Control Panel assumes that your projected retirement age is either the age your employer lists in your retirement plan’s document (your formal written employer retirement plan document that details how your retirement plan operates and its requirements) or is defaulted to age 67. You may edit this age to more accurately reflect when you plan to retire and to see how changing your retirement age may affect your projected retirement income.

If your retirement plan does not offer Advisory Services, click on the Edit link at the top of the page and change the Retirement Age directly on the page.

If your retirement plan provides Advisory Services, return to the “Access Advisory Services” menu on the home page and go through your user profile to make changes. If you change your retirement age in Advisory Services, it will change your retirement age for all Advisory Services functions and may cause a change in your recommended asset allocation and paycheck contribution. If you are enrolled in Managed Account, and change the retirement age listed in your profile, at market close your account will be re-forecast to see if a change in asset allocation is recommended. If Advisory Services determine your asset allocation needs to be changed, they will change it automatically and you will receive a notification in the mail. Your paycheck contribution will not be changed automatically. To see if Advisory Services recommends that you change your paycheck contribution, go to the strategy page of your profile to see the recommended paycheck contribution and accept or decline.

Replacement Income

Your Replacement Income shown at the top of the page is the percentage or amount of your current income you desire to have during retirement. The Retirement Income Control Panel calculation assumes you will need 100% of your current take home pay during retirement in order to maintain the same standard of living you have while working.

If you think you will need more or less than 100% of your current take home pay in retirement, you may adjust this on the Retirement Income Control Panel to see how it affects your projected retirement income. To change the percentage or amount at the top of the page, click on the Edit link and change the Replacement Income directly on the page with a different percentage or dollar amount.

Whether you need to replace 100% of your current take home pay once you retire depends on many factors. To help you estimate the percentage of your current take home pay you may need as Replacement Income, we have listed some of the biggest factors below:

Factors that may lower Replacement Income needs	Factors that may increase your Retirement Income needs
You may no longer be saving a portion of your income for retirement	Higher percentage of your income being used for healthcare expenses
Certain work expenses have decreased: transportation, food and clothing costs	Increases in travel expenses
Federal & State taxes are typically less: Additional deduction for being age 65 or older Post-tax savings has already been taxed (other than capital gains and interest income) Social Security income is not taxable if your income is below a specified limit Some states like Florida do not have income taxes	Increases in entertainment expenses

Projecting My Retirement Account(s) Balance(s)

The calculation for your projected retirement income assumes that you will continue to contribute to your retirement account at the same percentage of your salary that you currently contribute, until you reach retirement age. It also assumes that your salary will continue to grow over time in parallel with the long-term inflation rate.

Including Future Contributions

Your projected retirement income calculation is based on conservative assumptions about market performance, inflation rates, salary growth, and taxes. However, even with the best information and forecast models, the market’s past performance does not predict its future performance.

Market Performance

It is important to consider if your current strategy has the potential to provide the amount of desired retirement income you indicated depending on different market performance scenarios.

Poor - This shows you a conservative view of your projection. Under this scenario, markets perform significantly lower than historical averages. This means that in 90% of the historical market scenarios run, an asset allocation similar to yours performed at least as well as the results shown.
Fair - This shows you an average view of your projection. Under this scenario, markets perform near their historical averages. This means that in 70% of the historical market scenarios run, an asset allocation similar to yours performed at least as well as the results shown.
Good - This shows you an above average view of your projection. Under this scenario, markets perform significantly higher than historical averages. This means that in 50% of the historical market scenarios run, an asset allocation similar to yours performed at least as well as the results shown.

Income Sources

My Retirement Accounts

A green check next to My Retirement Account(s) in the Income Sources area at the top of the page means that your projected retirement income includes data about your retirement accounts that we are receiving from your current employer.

The account data used to calculate your projected retirement income includes: account balance, asset allocation, and paycheck contribution rate when applicable.

Projecting My Retirement Account(s) Balance(s)

Pension

A green check next to Pension in the Income Sources area at the top of the page means that your projected retirement income includes data from your pension plan. Please contact your employer to determine whether the pension data provided is based on your current vested benefit amount or your projected benefit amount.

If your retirement plan provides Advisory Services, you can also include pension information from a previous employer. This will appear as an additional income source under Outside Assets. To add an Outside Account, return to the “Access Advisory Services” menu on the home page and go through your user profile to make changes.

If your retirement plan does not provide Advisory Services you cannot add a Pension to your projected retirement income estimate.

Social Security

A green check next to Social Security in the Income Sources area at the top of the page means that your projected retirement income includes the Retirement Income Control Panel’s estimate of your future Social Security benefits.

Social Security benefits are not intended to be a sole source of retirement income. In fact, if you are eligible for Social Security, it may only replace a fraction of your current take home pay.

You may choose whether or not to include Social Security payments in your projected retirement income calculation. If Social Security is included, the calculation assumes that you will begin receiving benefits at the maximum benefit age of 67, unless your employer has set a different default retirement age or you changed the retirement age yourself (see Retirement Age above). Click the Edit link at the top of the page to choose your Social Security option.

If your retirement plan provides Advisory Services, your social security benefit amount can be customized. The Social Security Administration is the most accurate source of your future benefit information. In light of the current budget situation, they have suspended issuing Social Security Statements. You may be able to estimate your retirement benefit using their online Retirement Estimator.

To add custom social security information, return to the “Access Advisory Services” menu on the home page and go through your user profile to make changes.

Outside Assets

A green check next to Outside Assets in the Income Sources area at the top of the page means that your projected retirement income includes information about other asset accounts you have informed us about.

If your retirement plan provides Advisory Services, you may enter additional personal information and financial data to increase the accuracy of your projected retirement income estimate. The information can include other personal savings accounts; individual retirement accounts (IRAs); additional income sources; and spousal information such as salary, retirement and savings accounts, and Social Security information, if applicable.

Your proposed projected retirement income may include a recommendation to add an outside account. An additional account may allow you to save more than what is allowed by your current retirement plan or annual IRS limits.

To add outside assets, return to the “Access Advisory Services” menu on the home page and go through your user profile to make changes.

If your retirement plan does not provide Advisory Services you cannot add outside assets to your projected retirement income estimate.

Managed account, guidance and advice services are offered by Advised Assets Group, LLC (AAG) and powered by Ibbotson Associates, Inc. Both AAG and Ibbotson Associates, Inc. are federally registered investment advisers. AAG, FASCore, LLC and GWFS Equities, Inc. are wholly owned subsidiaries of Great-West Life & Annuity Insurance Company. GWFS Equities, Inc. is an affiliate of First Great-West Life & Annuity Insurance Company, White Plains, New York, and FASCore, LLC. Great-West Life & Annuity Insurance Company is not licensed to conduct business in New York. Insurance products and related services are sold in New York by its subsidiary First Great-West Life & Annuity Insurance Company. Other products and services may be sold in New York by its subsidiary FASCore, LLC. Representatives of GWFS Equities, Inc. are not registered investment advisers and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed. Ibbotson Associates, Inc. is not affiliated with GWFS Equities, Inc., Great-West Life & Annuity Insurance Company, First Great-West Life & Annuity Insurance Company, FASCore, LLC, or Advised Assets Group, LLC. Reality Investing^® is a registered trademark and Do-It-Myself^SM, Help-Me-Do-It^SM and Do-It-For-Me^SM are service marks of Great-West Life & Annuity Insurance Company. Put Our Power Behind You^® is a registered trademark of Advised Assets Group, LLC.

If your projected retirement income, as calculated by the Retirement Income Control Panel, is less than you would like, you can take action to try and improve it. The resources below provide examples of how you can try to improve your long term retirement savings.

Increasing Your Paycheck Contribution

The sooner you start to save and invest, the sooner your money can start working for you. Increasing your paycheck contribution has the potential to make a big difference. See examples of different pay period contributions and their affect on total savings. Learn More...

Modifying Your Asset Allocation

Asset allocation is the process of dividing your investment into the three basic asset classes—stocks, bonds and cash equivalents. By investing in a mix of the asset classes, you can help balance the risk and return of your investment.

Depending on various factors unique to you, including risk tolerance, time left until retirement, and personal retirement savings goals, your asset allocation can range from conservative to aggressive. With a more aggressive allocation you have the potential for higher returns, but also a higher risk of loss. If your projected retirement income is less than you desire, you may consider adjusting your asset allocation to increase your probability to achieve your desired income.

Your retirement plan may offer investment options that package asset allocation strategies in a single investment option, such as a target date or target risk fund. For more information on your retirement plan’s investment options, return to the home page and select the Investment Options menu.

If your retirement plan provides Advisory Services, you may receive personalized asset allocation advice by enrolling in the Online Investment Advice or Managed Account services. For more information, return to the Advisory Services menu on the home page.

Remember to review your investment strategy annually to ensure it is still appropriate for your retirement goals, and if necessary, rebalance your asset allocation. A Rebalance My Investments tool is available on the Transactions menu on the home page. Learn More...

Using Other Sources of Retirement Income

Financial planners have described the three most common sources of retirement income as Social Security, employee pensions, and your personal savings and investments.

Social Security

Social Security benefits are not intended as a sole source of retirement income. For most people, Social Security will only replace a fraction of their current take home pay. Here’s an example:

Average Annual Pay	% of Annual Pay Replaced by Social Security
$20,000	58%
$40,000	45%
$60,000	40%
$80,000	33%
$100,000	30%

Source: Social Security Administration (www.socialsecurity.gov/OACT/quickcalc/index.html), November 2011. FOR ILLUSTRATIVE PURPOSES ONLY. This assumption is based on current age of 35 and retirement at age 67. This example assumes no future increases in prices or earnings.

You can see that the higher the annual income, the lower the percentage of that income that Social Security benefits will replace. Clearly, Social Security will not replace everything you currently make at any of these incomes. Therefore, you may need additional sources of income to fully replace your current take home pay.

Pension Plan or Employer-Sponsored Retirement Plan

In recent years, many employers have been freezing or discontinuing pension plans and instead started offering employer-sponsored retirement plans where workers defer a portion of their own paycheck into their retirement account. If you do not have a Pension, or you have a small Pension, it is important to compensate for this source of retirement income by contributing to your retirement plan or other savings and investment accounts.

Other Savings and Investments

Besides making contributions to your employer-sponsored retirement plan, you can also save for retirement in Individual Retirement Accounts (IRAs) and in tax-advantaged investments. The two most popular types of IRAs are traditional and Roth IRAs.

Traditional IRAs permit you to make contributions that may be tax deductible and grow tax deferred (meaning you only pay taxes when you withdraw the money from the account).

Roth IRAs are a bit different in that all contributions are made with money that has already been taxed, but withdrawals you make from the account in retirement are exempt from taxes if you meet certain conditions.

Another option for additional retirement savings may be a tax-advantaged investment. Such investments include tax-free bonds, mutual funds devoted to minimizing taxes and tax-deferred annuities.

Another source of income is your personal savings, investments, certificates of deposit (CDs), or any stocks, bonds or mutual funds you may have.

Getting Expert Advice

If offered by your retirement plan, you may elect to enroll in an Advisory Services program that is right for you. Advisory Services provide Online Investment Guidance, Online Investment Advice, and Managed Account services to retirement plan participants. These services provide independent investment expert advice based upon your unique retirement goals. Advisory Services provides advice during the years that you are saving for retirement and also provides advice during the retirement years when you are receiving income from your retirement account. For more information and to enroll in Advisory Services, return to the Advisory Services menu on the home page.

Retrieving Income Sources...

Retrieving Contribution Information...

Retrieving Asset Allocation...

The information we are sending will be saved for this session only. To make permanent changes, please edit the information previously provided in the "Access Advisory Services" section of the website.

We could not retrieve your information for the Retirement Income Control Panel. Please contact your plan administrator.

To make changes to the selected account, please use the change plan feature on the home page.