Retirementality - US - May 2006

Table of Contents

• Introduction
• Other relevant reports
• Scope of the report
• Abbreviations and terms
• Abbreviation
• sExecutive Summary
• Expectations for "prime time"
• Changing terminology reflects the evolution
• Need for an individualized approach
• Implications for the industry
• The Psychology of Retirement
• The "new" old
• Aging no longer a liability
• Key characteristics of the Baby Boomer generation
  • Figure 1: How financially secure do youfeel about your retirement?, respondents age 55+, January-September 2005
• Baby Boomers envision retirement
• Healthcare concerns dominate as a financial worry
• Importance of personal savings
• Shifts in retirement destinations
  • Figure 2: Current top ten relocationstates for retirees age 60+
• Psychological preparation as a prelude to financial planning
  • Figure 3: Positive responses to "If Iwon the lottery I would never work again", by age, January-September2005
• New retirement mindscape
• The five stages of retirement
  • Figure 4: Positive responses to "Wouldrather have a boring job than no job", by age, January-September 2005
  • Figure 5: Positive responses to "I amhappy with my standard of living", by age, January-September 2005
• Regional differences
• Retirement priorities
  • Figure 6: Positive responses to "How Ispend my time is more important than money", by age, January-September2005
  • Figure 7: Positive responses to "Preferto work as part of a team rather than alone", by age,January-September 2005
  • Figure 8: Positive responses to "I feelsecure financially", by age, January-September 2005
  • Figure 9: Positive responses to "Iprovide my kids with things I didn't have", by age,January-September 2005
• Paths of retirement
• Finding new identities in retirement
• Need for psychological preparation
• Coping with retirement
• Work Patterns and the New "Retirementality"
• Working longer and phasing in
• Working while retired
  • Figure 10: Positive responses to "Moneyis the best measure of success", by age, January-September 2005
• Older workers still needed
• Reasons for working
  • Figure 11: Factors in the decision to workin retirement, 2003
• Benefits of phased retirement
• Preparing for a working retirement
  • Figure 12: Positive responses to "Iwould like to set up my own business", by age, January-September 2005
• Retiring, then returning to work
• Why non-working retirees return to work
• Reasons for returning to work
• Household debt and the need to keep working
  • Figure 13: Home ownership rate, by age,2001 and 2004
  • Figure 14: Household holdings of debt, byage, 2001-04
  • Figure 15: Number of respondents who havehome equity loan, by age, January-September 2005
• Financial Attitudes
• Anxieties about retirement increasing
• Retirement planning gaps
• Inadequate planning for income management
  • Figure 16: Positive responses to "I amvery good at managing money", by age, January-September 2005
• Lack of asset allocation strategy
• Need for withdrawal strategies
  • Figure 17: Positive responses to "Ienjoy taking risks", by age, January-September 2005
  • Figure 18: Positive responses to"Investing in the stock market is too risky", by age,January-September 2005
• Planning gaps among pre-retirees
  • Figure 19: Positive responses to "I knownothing about finances/investments", by age, January-September 2005
  • Figure 20: Positive responses to "I wantto know as much as possible before committing to financial products",by age, January-September 2005
  • Figure 21: Positive responses to "I shopfor the best deal for financial services products", by age,January-September 2005
  • Figure 22: Positive responses to "Ileave financial arrangements to someone else", by age,January-September 2005
  • Figure 23: Positive responses to "I findads for financial services interesting", by age, January-September2005
• Financial attitudes within ethnic groups
• People feel responsible for their own success
• Ethnic influence on retirement attitudes
• Attitudes among African-Americans, Asians and Hispanics
  • Figure 24: Positive responses to "Idon't like the idea of being in debt", by age, January-September2005
• Asian-Americans and financial attitudes--a closer look
• African-Americans and financial attitudes--a closer look
• Hispanics and financial attitudes--a closer look
  • Figure 25: Attitudes of English-dominantvs. Spanish-dominant Hispanic Baby Boomers, 2006
• Financial attitudes of women
• Sexual preference and retirement attitudes
• Legacy planning among the generations
• Influence of the "alpha" child
• Financial Behaviors
• Baby Boomers' financial responsibilities
• Savings habits of affluent Baby Boomers
• Sources of retirement income
• Debt activity
  • Figure 26: Positive responses to "Oftenprefer to pay cash for things I buy", by age, January-September 2005
• Credit card ownership
  • Figure 27: Positive responses to "creditcards--do you have or use?", by age, January-September 2005
  • Figure 28: Positive responses to "Have adebit card (MasterCard or Visa)", by age, January-September 2005
  • Figure 29: Respondents who have three ofmore credit cards, by age, January-September 2005
• Credit card usage
  • Figure 30: Positive responses to "Anycredit cards used in the last 30 days", by age, January-September 2005
• Debit card usage
  • Figure 31: Positive responses to "UsedMasterCard debit card 20 or more times per month", by age,January-September 2005
  • Figure 32: Positive responses to "UsedMasterCard debit card between one and five times per month", by age,January-September 2005
  • Figure 33: Positive responses to "UsedVisa debit card between one and five times per month", by age,January-September 2005
  • Figure 34: Proportion of monthly billpaid--Visa, MasterCard, Discover, Amex, by age, January-September 2005
• Where assets are held
  • Figure 35: Have a retirement account, bygender and age, March 2006
  • Figure 36: Type of institution withretirement assets, age 55+, March 2006
  • Figure 37: Have a non-retirement account,by age, January-September 2005
  • Figure 38: Type of brokerage account held,by age, January-September 2005
  • Figure 39: Online account usage, by age,January-September 2005
  • Figure 40: Have mutual fund/brokerageaccounts, by age, January-September 2005
  • Figure 41: Respondents who own anyinvestments, type of investment owned, by age, January-September 2005
  • Figure 42: Positive responses to "OwnKeogh/SEP IRA/pension", by age, January-September 2005
  • Figure 43: Positive responses to "ownIRA" and "own 401k", by age, January-September 2005
  • Figure 44: Financial transactions withcredit unions, by age, January-September 2005
  • Figure 45: Senior Citizens Clubparticipation, by age, January-September 2005
  • Figure 46: Relationship with mutualfund/brokerage firm, by age, January-September 2005
• Rollover trends
  • Figure 47: Original and new providers,asset-weighted share of transactions, 2004
• Reasons for Rolling over Assets to Specific Institutions
• Importance of an established relationship
  • Figure 48: Importance of an establishedrelationship and online banking for rollover respondents, March 2006
• Easy access through electronic services
• Preferred investment menu
  • Figure 49: Importance of investment typeand investment return to rollover respondents, March 2006
• Returns on investments
• Money management philosophy
  • Figure 50: Importance of conservativeapproach, consolidation of assets, and personal recommendation torollover respondents, March 2006
• Good place to consolidate
• Influence of friends
• Primary sources of financial information
  • Figure 51: Primary advisors as source offinancial information, March 2006
• Technology facilitating rollovers
• Products Which Address the New "Retirementality"
• Reverse mortgages as a new retirement planning tool
  • Figure 52: Reverse mortgages issued,2001-Q3 2005
• Solo 401(k)s
• Retirement income products and services
• Acceptance of electronic services
  • Figure 53: Positive responses to "Use adebit card and electronic funds transfer", by age, January-September2005
• Income planning services
• Obtaining advice
• Retirement plan advice through the workplace
• Trust of financial companies
• Appendix A: Advertising
• Attitudes about advertising
• Advertising to seniors online
• African-Americans and the Internet
• Hispanics and the Internet
• Advertising approaches
• Fidelity
  • Figure 54: Fidelity print advertisement,2006
  • Figure 55: Fidelity print advertisement,2006
  • Figure 56: Fidelity print advertisement,2006
• Ameriprise
  • Figure 57: Ameriprise print advertisement,2006
• AIG
  • Figure 58: AIG print advertisement, 2006
• Prudential
  • Figure 59: Prudential print advertisement,2006
  • Figure 60: Prudential print advertisement,2006
  • Figure 61: Prudential print advertisement,2006
  • Figure 62: Prudential print advertisement,2006
• The Principal
  • Figure 63: Principal Financial Group printadvertisement, 2006
  • Figure 64: Principal Financial Group printadvertisement, 2006
• Transamerica
  • Figure 65: Transamerica printadvertisement, 2006
• Vanguard
  • Figure 66: Vanguard print advertisement,2006
  • Figure 67: Vanguard print advertisement,2006
• T. Rowe Price
  • Figure 68: T. Rowe Price printadvertisement, 2006
  • Figure 69: T. Rowe Price printadvertisement, 2006
• A.G. Edwards
  • Figure 70: A.G Edwards printadvertisement, 2006
• Edward Jones
  • Figure 71: Edward Jones printadvertisement, 2006
  • Figure 72: Edward Jones printadvertisement, 2006
• American Century
  • Figure 73: American Century printadvertisement, 2006
  • Figure 74: American Century printadvertisement, 2006
• Lincoln Financial Group
  • Figure 75: Lincoln Financial Group printadvertisement, 2006
• New York Life
  • Figure 76: New York Life printadvertisement, 2006
• Appendix B: Other relevant studies