Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — Investor Presentation (2019)

27 slides from Automatic Data Processing's investor presentation, 2019

  1. Slide 1: Plan your retirement: Decide your retirement savings goal

    Plan your retirement: Decide your retirement savings goal Date | Location Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  2. Slide 2: Decide your retirement savings goal

    Decide your retirement savings goal 1 Set a savings goal • Considerations • Available tools 2 Uncover money to save • Your plan can help you save • Money management 3 Saving in your plan • Features • Resources 2 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  3. Slide 3: Set your retirement savings goal

    Set your retirement savings goal Things to consider • Current annual pre-tax income You may need • Estimated Social Security benefit amount 75 –90 % % of your working • Current age and the age you would like to retire income to live comfortably • Any retirement savings amounts in retirement • Your v

  4. Slide 4: Example: replace 75% of current working income

    Example 1 Retirement savings goal: Replace 75% of current working income Goal: Current annual salary: $40,000 Current account balance: $0 $477,000 Current age: 32 Initial Annual Assumed retirement age: 67 Contribution: $3,600 Assumed years in retirement: 25 9% of annual salary Includes full Social S

  5. Slide 5: Example: replace 90% of current working income

    Example 2 Retirement savings goal: Replace 90% of current working income Goal: Current annual salary: $40,000 Current account balance: $0 $688,000 Current age: 32 Initial Annual Assumed retirement age: 67 Contribution: $5,200 Assumed years in retirement: 25 13% of annual salary Includes full Social

  6. Slide 6: Example: replace 75% of income, age 42

    Example 3 Retirement savings goal: Replace 75% of current working income Current annual salary: Current account balance: $40,000 $0 Goal: $415,000 Current age: 42 Initial Annual Assumed retirement age: 67 Contribution: $6,800 Assumed years in retirement: 25 17% of annual salary Includes full Social

  7. Slide 7: MyADP Retirement Snapshot

    MyADP Retirement SnapshotTM • Easy to use – answer 6 simple questions • View projected savings results • One-click to enroll IMPORTANT: ADP, LLC owns and operates the ADP.com website and ADP mobile app. MyADP Retirement Snapshot makes no assumptions about your tax status or savings and should not be

  8. Slide 8: Health care costs projector

    Health care costs projector More than 364,000 Understanding the possible cost of $ health care in retirement is a critical part of a total financial The projected health care costs of a wellness plan. 65-year-old1 1 HealthView Services, 2018 Retirement Health Care Cost Data Report. 8 Copyright © 200

  9. Slide 9: Health care cost projector

    Health care cost projector Current employee contributions and income Estimate healthcare costs in retirement by Other sources of potential income in retirement using an interactive calculator that takes Projected monthly retirement income and into account factors to pairing them with participant dat

  10. Slide 10: Uncover money to save

    Uncover money to save 10 Copyright ©2006- 2019 ADP, LLC. Proprietary and Confidential.

  11. Slide 11: Leverage 401(k) plan tax advantages

    Leverage 401(k) plan tax advantages Before-tax contributions Saver’s Credit ▪ Reduce your current taxes by ▪ Special tax credit for eligible reducing your taxable income mid- and low-income ▪ Worth up to $1,000 (single) to $2,000 (married filing jointly) ▪ Learn more and get tax forms at www.irs.gov

  12. Slide 12: Money management

    Money management Live within your Reduce Consider saving means non-essential your annual raise spending or bonus 12 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  13. Slide 13: Budget basics

    Budget basics Track expenses Salary necessities discretionary spending what you can save 13 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  14. Slide 14: Small change, big reward

    Small change, big reward $7 $30,650 saved $14,083 per week $375 $4,990 1 year 10 years 20 years 30 years ADP makes no recommendation regarding the appropriateness of any contribution amount or type. Keep in mind that this is just a mathematical concept. This hypothetical example does not reflect any

  15. Slide 15: Spend now, pay later

    Spend now, pay later $3,024 growth of $500 $1,660 $911 $531 1 year 10 years 20 years 30 years ADP makes no recommendation regarding the appropriateness of any contribution amount or type. Keep in mind that this is just a mathematical concept. This hypothetical example does not reflect any taxes, exp

  16. Slide 16: Spend now, pay later

    Spend now, pay later $6,049 growth of $1,000 $3,320 $1,882 $1,062 1 year 10 years 20 years 30 years ADP makes no recommendation regarding the appropriateness of any contribution amount or type. Keep in mind that this is just a mathematical concept. This hypothetical example does not reflect any taxe

  17. Slide 17: Spend now, pay later

    Spend now, pay later $15,122 growth of $2,500 $8,300 $4,555 $2,655 1 year 10 years 20 years 30 years ADP makes no recommendation regarding the appropriateness of any contribution amount or type. Keep in mind that this is just a mathematical concept. This hypothetical example does not reflect any tax

  18. Slide 18: Financial Wellness Program

    Financial Wellness Program 18 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  19. Slide 19: Unlock the potential of your retirement plan

    Unlock the potential of your retirement plan 19 Copyright ©2006- 2019 ADP, LLC. Proprietary and Confidential.

  20. Slide 20: SaveSmart

    SaveSmart® Automatically increasing your contribution rate can yield big results 10 years 20 years 30 years 5% contribution $31,583 $99,008 $234,352 + 1% Save Smart $21,235 $80,474 $201,155 Total account balance $52,820 $179,482 $435,507 ADP makes no recommendation regarding the appropriateness of a

  21. Slide 21: How much you have saved for retirement will mostly depend on

    How much you have saved for retirement will mostly depend on: How much When you Your asset you save start saving allocation 21 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  22. Slide 22: Determine your risk tolerance

    Determine your risk tolerance Inflation Risk Market Risk The risk that your money won’t maintain The change in value of an investment in it’s purchasing power over time. response to stock market conditions. Investment returns and principal value of an investment will fluctuate so that, In an investm

  23. Slide 23: Asset allocation features in your plan

    Asset allocation features in your plan Target retirement date funds • Designed based on anticipated retirement dates • Allocation becomes more conservative over time Risk-based investment funds • Design based on risk tolerance • Allocation remains constant The underlying mutual funds in the portfoli

  24. Slide 24: Financial Engines Advisory Services

    Financial Engines® Advisory Services Flexible solutions • Professional management for a low monthly fee • Retirement advisor representatives Online advice service • Personalized retirement evaluation • Personalized retirement plan Financial Engines® Professional Management is a service of Edelman Fi

  25. Slide 25: Resources

    Resources Resources available to you include: Quarterly account statement MyADP.com Call center / voice response • Review your account system • Elect plan features • Access retirement planning information and calculators 25 Copyright © 2006-2019 ADP, LLC. Proprietary and Confidential.

  26. Slide 26: Stay connected to your account

    Stay connected to your account MyADP.com ADP, LLC owns and operates the ADP.com website and ADP mobile app. ADP, LLC and its affiliates do not offer investment, tax or legal advice to individuals. Nothing contained in this communication is intended to be, nor should be construed as, particularized a

  27. Slide 27: For more information, visit MyADP.com

    For more information, visit MyADP.com ADP, the ADP logo and Always Designing for People are trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. 99-5393-I-P-0319 Copyright © 2019 ADP, LLC. All Rights Reserved. 27 Copyright © 2006-2019 ADP, LLC.

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