CS CFFS 4270 Problem Set 5 Turn in a printout of this file with your answers by the beginning of class Tuesday, Nov. 3, 2015

Create a hypothetical case household consisting of a single person or couple at least 10 years away from their planned retirements. Your case must be different from any other students case. Specify jobs, employers, and pension plans, as well as desired retirement ages, and life expectancy at retirement. Make some assumption about current balances in retirement accounts.

Describe everything in detail. You do not have to calculate whether they are on track to achieve their retirement goals, but you might need to do this on an exam.

You can base your assumptions on a real person, but do not use their names, and use the actual name of an employer only if it is large, e.g., Ohio State University, or Nationwide Insurance.

Do not use an extreme case, e.g., an NBA player.

Use as much space as necessary for each part. Provide answers only in the appropriate section.

Description of single person or couple, including health, whether legally married, age and planned retirement age, plus balances on investments other than employer retirement plans:

	Head	Spouse or partner, if any
Name (Do not use real name)
Age (date of birth)
Marital status
Current working status
Planned retirement age
Balance on investments other than in employer retirement plan
Investment composition of investments

List other characteristics (e.g., age of children, type of job):

Based on http://www.socialsecurity.gov/OACT/population/longevity.html plus the information in the textbook and in lectures, what is the life expectancy of each partner/spouse at retirement?

What assumptions about the length of retirement should you use in calculating the present value of income needed in retirement?

Description, and if appropriate, name of employer of each partner/spouse, exact nature of each pension plan, and all necessary details, e.g., if a defined benefit pension plan, the basic formula. Note for some plans of larger employers, a search will provide some information, e.g., for those working for OSU, see page 5 of http://hr.osu.edu/public/documents/hrpubs/ben/UniversityRetirementGuide.pdf

	Head	Spouse or partner, if any
Name of employer
Employer sponsored defined benefit pension plan? Formula for DB plan Expected years of service at retirement Expected annual pension (in todays dollars) at retirement
Employer sponsored defined contribution plan or other non-DB plan? Employer match rules Investment choices

List other characteristics:

Assumptions about each partner/spouses eligibility, credits, balances, etc. in each pension plan, and for defined contribution plans (e.g., 401(k) contribution rate?), the investment allocations (e.g., percent stocks).

Projection of income at retirement other than from accumulated investments. Assume worker will get SS pension unless you specified an Ohio public pension you MUST attach a printout {s} from http://www.socialsecurity.gov/OACT/quickcalc/index.html

	head	Spouse/partner, if any
Current annual wages
Annual Social Security pension

Use same date of birth and expected retirement age listed on page