RESOURCES

Examples of Hypothetical Employees

Kris

Retired Nurse, age 65

Needs: Stability of assets and income security

“My spouse and I are retired, and my pension, our retirement savings, and our Social Security benefits provide us with income. But I worry about market volatility affecting our savings and not having stability with our income.

We were interested to hear about the Deferred Lifetime Income option, because a lot of our money is subject to the fluctuations of the investment markets. The annuity income isn’t affected by the investment markets and could provide needed security.”

CHOICE: 50% JOINT & SURVIVOR

 

Jay

Health Sciences Professor, age 63

Needs: Simplified decision-making and spousal income

"I will retire this year after 20 years at UC and expect my UCRP benefit will replace about half of my base pay. So, I'll need more income to cover my expected expenses in retirement.

I've always planned to purchase an annuity to provide additional retirement income, but with so many products and insurers, it’s been a bit overwhelming. That's why I was excited to learn about Deferred Lifetime Income. The insurer has been vetted and UC makes the process easier by enabling us to use some of my pretax DC Plan money to purchase an annuity. Knowing that my spouse will have additional income if they outlive me brings real peace of mind."

CHOICE: 75% JOINT & SURVIVOR

 

Taylor

Retired Technician, age 68

Needs: Stability of assets, simplified decision-making, and income security

"When I retired a few years ago, I felt confident that I could invest wisely and manage my savings withdrawals to carry me through retirement.

Since retiring, I'm realizing that it's harder than I thought, especially with increased volatility of the investment markets. I'd rather make complex financial decisions now, so I like being able to plan ahead with Deferred Lifetime Income. It will supplement Social Security, my only other source of income, when payments start in 10 years."

CHOICE: SINGLE LIFE

 

Akira

Professor, age 67

Need: Estate planning

“My UCRP benefit will meet most of my spending needs throughout retirement. My concern is passing along my assets to my two adult children through estate planning.

I have a solid balance in my UC 403(b) Plan. But when I reach 72, I'll have to start taking minimum required distributions (MRDs) from it.

Using some of my 403(b) money to buy Deferred Lifetime Income fits nicely with my estate plan because it reduces the MRD amount I'll have to take out of my 403(b), hopefully leaving more money to pass on to my kids."

CHOICE: SINGLE LIFE

 

Terry

Administrative Assistant, age 64

Need: Retirement income

"I've spent my entire career at UC, so I know that my UCRP benefit will replace much of my current income when I retire.

I'm not married and don’t worry about preserving my pretax UC DC plan savings for my children. I will use those savings for special purchases like a car or vacations.

I decided that Deferred Lifetime Income wasn't for me, since I feel confident that, between my UCRP benefit and DC plan savings, I should be able to cover my expenses in retirement."

CHOICE: NO PURCHASE

 

Examples are fictional employees and are for illustrative purposes only.