Sylvester J. Schieber Vice President and U.S. Director of Benefits Consulting Watson Wyatt Worldwide Arlington, Virginia Review of Previous Summits and Current Status of Retirement Savings Saving for Your Golden Years: Trends, Challenges and Opportunities Overview lBroad conclusions from prior summits and recent savings experience lSaving for our golden years: theory and reality lPopulations particularly at risk lFocus of the sessions during this summit Conclusions from Summits I and II lAmericans must save more today if they are to realize the dream of a financially secure retirement (Summary report from the first summit) lAmericans are saving too littleoften dangerously too little This problem is especially acute for women and minorities. President George W. Bush Personal Saving Rate as a Percentage of Disposable Income in the United States Since the Passage of ERISA Source: US Department of Commerce, Bureau of Economic Affairs, National Income and Product Accounts. What Is Golden? lOlder Americans Act (P.L , 1965) states that older people should enjoy an adequate income in retirement in accordance with the American standard of living. lPresidents Commission on Pension Policy (1981) held that pretirement living standards should be measured in terms of preretirement disposable income. This takes into account Work-related expenses including taxes Different expenditure needs while working versus the retirement periode.g., educating children, health consumption, and so forth Modern Day Analysts and Retirement Planners Put Target Retirement Income at Around 70 to 80 Percent of Preretirement Earnings for People to Maintain Living Standards Annual Retirement Income Required to Live Comfortably in Retirement Anticipated by Those 50 and Older and Participating in a Retirement Plan Percentage of Annual IncomePay of