Retirement learning tools

IMPORTANT INFORMATION - Please download and read

Please download and review the Transamerica Retirement Advisors, LLC Form CRS

Important information about consolidation: Transfer specialists are registered representatives of Transamerica Investors Securities Corporation (TISC). Review the fees and expenses you pay, including any charges associated with transferring your account, to see if consolidating your accounts could help reduce your costs. Be sure to consider whether such a transfer changes any features or benefits that may be important to you.

The role of the onsite Retirement Planning Consultant is to assist you with your retirement plan. There are no additional charges for meeting with your Retirement Planning Consultant, who is a registered representative with Transamerica Investors Securities Corporation (TISC), member FINRA, 440 Mamaronek Avenue, Harrison, NY 10528, and registered investment advisor of Transamerica Retirement Advisors, LLC (TRA), Registered Investment Advisor. All Transamerica companies are affiliated, but are not affiliated with your employer.

About Probability Illustrations, Limitations, and Key Assumptions

The probability illustrations, including the Your Retirement Outlook® graphic, estimated retirement income graphic, sources of your retirement income chart, and income planning spend down illustration generated from the engine are based on “Monte Carlo” simulations of 500 possible investment scenarios for a given time period and assume a range of possible returns. The “About Probability Illustrations, Limitations, and Key Assumptions” apply to the OnTrack® tool and the Advice Services, which includes Managed Advice® (offered in plans and IRAs) and Advisor Managed AdviceSM. The illustrations are generated according to models developed by Morningstar Investment Management LLC, a leading independent provider of asset allocation, manager selection, and portfolio construction. The Your Retirement Outlook® graphic reflects the difference between the model’s estimated annual income (which corresponds to a 70% probability level of income in the investment scenarios simulated) and your annual income goal.

When forecasting the probability of achieving your income goal, the model employs different returns for different asset classes, based on Morningstar Investment Management’s capital market assumptions developed using historical and forward-looking data. Forecasts of expected return, expected standard deviation and correlation among asset classes are based on Morningstar Investment Management LLC's proprietary equity, fixed income, currency and risk models. Current investment options are assigned to asset classes based on Morningstar Categories, and fees and charges inherent in investing are incorporated with an average fee assumption for each asset class. The benchmarks used for modeling the various asset classes are below. Return assumptions are updated annually; these updates may have a material impact on your projections. Return assumptions are estimates not guarantees. The returns you experience may be materially different than projections. You cannot invest directly in an index.

The probability illustrations assume both retirement at the age at which you qualify for full Social Security benefits and an annual retirement income goal of 80% of your projected final working salary. These assumptions are adjustable by you or by your employer if you are in an employer-sponsored retirement plan. Social Security estimates are based on the Social Security Administration methodology and your current salary. If you have indicated within your Retirement Profile, Advice Services Profile, or your Managed Advice Profile that you are retired, you are required to input your actual Social Security benefit amount provided by the Social Security Administration. The probability illustrations also assume a consistent contribution percentage, if applicable, and asset allocation (no future changes or rebalancing unless you are subscribed to one of the Advice Services or a target date asset allocation service), annual inflation of approximately 2%, and annual salary increases (unless you are retired), based on a calculation that incorporates multiple factors including a salary growth curve and inflation. Mortality assumptions are based on the Society of Actuaries tables. In addition to all personal information you have inputted into your Retirement Profile, Advice Services Profile, or your Managed Advice Profile, and, if applicable, any retirement plan information that Transamerica’s record keeping system maintains such as account balance, contribution rates, asset allocation and retirement plan information, the probability illustrations contemplate tax rates, retirement needs, social security, and future cash flows. The simulations model tax rules for most taxable and tax-deferred investment accounts. Tax rules are applied throughout the process, including required minimum distribution rules that apply to some tax-deferred accounts. Any withdrawals from tax-deferred sources may be assessed an early withdrawal penalty which is taken into consideration in these illustrations. The spend-down order of your accounts is determined by an algorithm and aims to optimize tax exposure (by generally exhausting taxable accounts first then tax-deferred accounts) and Social Security benefits. Your selected retirement year (and your spouse/ partner’s retirement year as applicable) can vary the withdrawal sequence determined by the engine. The engine will avoid withdrawing from tax- deferred accounts, should you (and your spouse/partner as applicable) select a retirement age younger than 60 years old. If income is needed and no other sources of income exist, the engine will be forced to withdraw from tax-deferred accounts holding after-tax money and tax deferred accounts in the simulations, as needed. Estimated retirement income used in the probability illustrations are after-tax.

The models are subject to a number of limitations. Returns associated with market extremes may occur more frequently than assumed in the models. Some asset classes have relatively limited histories; for these classes the models use historical data for shorter time periods. The model does not consider other asset classes such as hedge funds or private equity, which may have characteristics similar or superior to those used in the model. Capital market assumptions are forecasts which involve known and unknown risks, uncertainties, and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance, or achievements expressed or implied by those projections for any reason.

There is no guarantee that your income goal will be achieved or that the aggregate accumulated amount will ensure a specified annual retirement income. Results may vary with each use and over time.

IMPORTANT: The projections or other information generated by the engine regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Moreover, even though the tool’s estimates are statistically sound based upon the simulations it runs, the tool cannot foresee or account for every possible scenario that may negatively impact your financial situation. Thus, you should monitor your account regularly and base your investment decisions on your time horizon, risk tolerance, and personal financial situation, as well as on the information in the prospectuses for investments you consider.

Transamerica has licensed the Morningstar® Wealth Forecasting EngineSM from Morningstar, Inc., which is used by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., in the services it provides to participants. Morningstar Inc. and Morningstar Investment Management LLC are not affiliated with Transamerica. The Morningstar name and logo are registered marks of Morningstar, Inc.