Test Your Retirement Readiness Knowledge
Filbrandt Reports
Report Summary
In this report, you will learn:
- What “Full Retirement Age” means
- The difference between financial independence and retirement
- Whether professors are at risk of losing their life insurance at retirement
- If university professionals are required to roll over their retirement accounts to an IRA
- What percentage of Americans over age 65 typically require long-term care

Retirement is an important part of everyone’s financial future. However, many people don’t fully educate themselves on what awaits them, and as a result, are often surprised by what does or doesn’t happen concerning their finances.
Are you ready to test your retirement knowledge and see how many of these key points you know? Let's get started.
Q. What is Your “Full Retirement Age?”
A. For people born in the year 1960 and later, full retirement age is considered to be 67. This is the age at which they will be fully vested in their Social Security benefits and be able to receive 100 percent of the eligible monthly amount, based on their salary history. People born before 1960 have different “full retirement ages.” Examples:
• 1955: 66 years, 2 months
• 1956: 66 years, 4 months
• 1957: 66 years, 6 months
• 1958: 66 years, 8 months
• 1959: 66 years, 10 months
Professors who claim Social Security benefits earlier than full retirement date will receive less than 100 percent of eligible benefits each month through death. People who wait until after full retirement date stand to receive more than 100 percent of their eligible amount.
Q. What is the Difference Between Financial Independence and Retirement?
A. A person is financially independent when he or she no longer needs to work to maintain their desired lifestyle. Instead, their money will do the work to provide the lifestyle they want. One’s retirement date is usually tied to an age or career longevity milestone. Therefore, the two don’t always coincide. This is particularly the case in academia, where retirement often occurs later than in most professions.
Q. True or False: Many Professors Are at Risk of Losing Their Life Insurance at Retirement
A. True. Many professors forget about the life insurance benefit they have through the university until after they have retired, when it is too late. Without taking action through the benefits office to extend life insurance or seeing alternative options, that benefit will cease the moment the professor’s employment ends.

Q. True or False: University Professionals Are Required to Roll Over Their Retirement Accounts to a Personal IRA Upon Retirement
A. False. Professors are not required to roll over their retirement accounts, and the university plans offer several advantages over other retirement plan structures:
• When people in academia roll retirement savings outside of the university, they can lose access to some unique products that can have great benefits.
• Generally speaking, fees will be higher for accounts outside the university environment.
• The IRS considers a retirement plan as a safe haven from creditors. IRAs, in some cases, are not.
Q. What percentage of American adults over the age of 65 are likely to need some form of long-term care?
A. When the topic of long-term care arises, some people have the attitude that “it won’t happen to me.” According to AARP, about 70 percent of people over the age of 65 will need some type of long- term care assistance during retirement. Therefore, this should be part of your retirement planning. See our recent report for more on some of the options you should consider to prepare for the possible need of long-term care.
How did you do?
If you answered these questions easily, give yourself a pat on the back. If not, you may realize you have more studying to do before you retire. These are all important concepts to understand so that you're as prepared as possible for retirement. To speak with a financial professional on our team about your retirement needs, call 800.431.9740 or schedule an online consultation.
The information provided is not, nor is it intended to be, legal, tax, or investment advice. You should consult your attorney financial and legal professional(s) for advice regarding your individual circumstances. We are required by Treasury Regulations (Circular 230) to inform the readers of this material that, to the extent that the information contained herein concerns federal or state tax issues, such information was not written or intended to be used, and cannot be used, for (1) avoiding federal or state tax penalties or (2) promoting, marketing, or recommending to another party transaction or matter addressed. Filbrandt, the University Division of Savant Wealth Management, is an SEC registered investment advisor serving clients in academia nationally. Our advisers have specific and in-depth knowledge about university employee benefit programs and retirement plans. We work with university faculty, physicians, and other professionals. We are not associated with any university, or any retirement vendor and we have no access to your private retirement or personnel information. Savant Wealth Management (“Savant”) is an SEC registered investment adviser headquartered in Rockford, Illinois. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.savantwealth.com.
About the Author
James Haygood, CFP®, AWMA®, is a Financial Advisor at Filbrandt, the University Division of Savant. James has a deep understanding of tax and estate planning concepts. He specializes in constructing comprehensive financial plans for new clients.