Marketing Financial Services to Baby Boomer Retirees - US - October 2007

Table of Contents

• Scope and ThemesWhat you need to know
• Methodology
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Attitudes toward financial services
• Retirement
• Retirement planning
• Barriers to retirement planning/savings
• How well prepared are Baby Boomers for retirement?
• Sub-group differences
• Usage of financial products and services
• Consumer Profiles Used Throughout the Report
• Demographics
• Psychographic cohort segments
• General Attitudes Towards Financial Services
• Selecting financial service providers
  • Figure 1: Opinions about shopping for financial services, by gender, January-October 2006
  • Figure 2: Opinions about shopping for financial services, by age, January-October 2006
  • Figure 3: Opinions about shopping for financial services, by Baby Boomer cohort, January-October 2006
• Attention to financial services media
  • Figure 4: Opinions about financial services media, by gender, January-October 2006
  • Figure 5: Opinions about financial services media, by age, January-October 2006
  • Figure 6: Opinions about financial services media, by Baby Boomer cohort, January-October 2006
• Attitudes toward risk
  • Figure 7: Agreement with: "investing in the stock market is too risky", by age, gender, demographic segment, and household income, January-October 2006
• Retirement Expectations
• Expected retirement age
  • Figure 8: Age individuals plan to retire, by age group, September 2007
  • Figure 9: Age plan to retire, by income, September 2007
  • Figure 10: Age plan to retire, by gender, September 2007
• Expected sources of income in retirement
  • Figure 11: Whether expect to receive a pension, by age, September 2007
  • Figure 12: Whether expect to receive a pension, by gender, September 2007
  • Figure 13: Whether expect to receive a pension, by household income, September 2007
• Expected retirement residence
  • Figure 14: Whether expect to move/sell house when retired, by age, September 2007
  • Figure 15: Whether expect to move/sell house when retire, by household income, September 2007
• Retirement Planning and Barriers to Planning
• Retirement planning
  • Figure 16: Types of financial planning done, by gender, September 2007
  • Figure 17: Types of financial planning done, by age, September 2007
  • Figure 18: Types of financial planning done, by household income, September 2007
  • Figure 19: Types of financial planning done, by education, September 2007
• Barriers to retirement savings and planning
• Conflicting priorities
  • Figure 20: Agreement with: "I am not focusing on my retirement because i have other financial concerns at the moment", by age, gender, presence of children, and household income, September 2007
  • Figure 21: Agreement with: "It is too difficult to make financial goals because life is so unpredictable", by age, gender, and presence of children, and household income, September 2007
• Lack of financial literacy
  • Figure 22: Opinions of financial literacy, by household income, January-October 2006
• Gender and financial literacy
  • Figure 23: Opinions of financial literacy, by gender, January-October 2006
  • Figure 24: Person in household who primarily makes the decisions as to how retirement savings should be invested, by gender and marital status, September 2007
• Financial literacy, by Baby Boomer cohort
  • Figure 25: Agreement with: "I know nothing about finances/investment", by Baby Boomer cohort, January-October 2006
  • Figure 26: Agreement with: "I know nothing about finances/investment", by demographic segment and gender, January-October 2006
• Attitudes toward savings
  • Figure 27: Opinions about savings versus spending, by gender, January-October 2006
  • Figure 28: Opinions about savings versus spending, by baby Boomer cohort, January-October 2006
• How Well Prepared are Baby Boomers for Retirement?
• Challenges facing Baby Boomers
• Feelings of financial security
  • Figure 29: Agreement with: "I feel secure financially", by household income, January-October 2006
  • Figure 30: Agreement with: "I feel secure financially", by age, January-October 2006
  • Figure 31: Agreement with: "I feel secure financially", by Baby Boomer cohort, January-October 2006
• Confidence in having enough money to retire
  • Figure 32: Agreement with: "I feel confident that I will have enough money when I retire", September 2007
• Perceptions of individual responsibility for retirement
  • Figure 33: Agreement with: "financial security for retirement is an individual responsibility", by age, January-October 2006
  • Figure 34: Agreement with: "financial security for retirement is an individual responsibility", by household income, January-October 2006
  • Figure 35: Agreement with: "financial security for retirement is an individual responsibility", by Baby Boomer cohort, January-October 2006
• Feelings of individual control
  • Figure 36: Agreement with: "I have control over my own financial future", September 2007
• Amount of retirement savings
  • Figure 37: Total invested in household' s retirement accounts (such as 401k, IRA, SEP, etc.) by age, September 2007
  • Figure 38: Total invested in household' s retirement accounts (such as 401k, IRA, SEP, etc.) by household income, September 2007
  • Figure 39: Total invested in household' s retirement accounts (such as 401k, IRA, SEP, etc.) by gender and marital status, September 2007
  • Figure 40: Total invested in household' s retirement accounts (such as 401k, IRA, SEP, etc.) by gender and marital status, for those who know their balance, September 2007
• Usage of Banking Products and Services
• Ownership of bank accounts
  • Figure 41: Banking accounts currently have, by household income, January-October 2006
  • Figure 42: Banking accounts currently have, by baby boomer cohort, January-October 2006
  • Figure 43: Banking accounts currently have, by gender and employment status, January-October 2006
  • Figure 44: Banking accounts currently have, by age, January-October 2006
• Primary bank
  • Figure 45: Primary bank, by household income, January-October 2006
  • Figure 46: Primary bank, by baby boomer cohort, January-October 2006
  • Figure 47: Primary bank, by household income, January-October 2006
• Usage of Investment Products and Services
• Types of investment accounts owned
  • Figure 48: Investment types currently have, by household income, January-October 2006
  • Figure 49: Value of investment accounts currently have for those who have each type of account, January-October 2006
  • Figure 50: Investment types currently have, by baby boomer cohort, January-October 2006
  • Figure 51: Investment types currently have, by gender and employment status, January-October 2006
  • Figure 52: Investment types currently have, by baby boomer cohort, January-October 2006
• Mutual fund companies
  • Figure 53: Mutual fund companies currently have, by household income, January-October 2006
  • Figure 54: Mutual fund companies currently have, by age, January-October 2006
• Few gender differences emerge in mutual fund companies used
  • Figure 55: Mutual fund companies currently have, by age, January-October 2006
  • Figure 56: Mutual fund companies currently have, by baby boomer cohort, January-October 2006
• Types of firms trusted
  • Figure 57: Types of firms trusted to give good retirement planning advice, by gender, September 2007
  • Figure 58: Types of firms trusted to give good retirement planning advice, by annual household income, September 2007
  • Figure 59: Types of firms trusted to give good retirement planning advice, by region, September 2007
• Marketing to Baby Boomers
• For every product, there is likely to be a large Baby Boomer niche
• Financial services marketers
• Advertising approaches
  • Figure 60: Geico print advertisement, 2007
  • Figure 61: Ameriprise print advertisement, 2007
  • Figure 62: Fidelity.com/Pete retirement planning print advertisement, 2007
  • Figure 63: Prudential print advertisement, 2007
• Profile of Retired Versus Employed Baby Boomers
  • Figure 64: Agreement with opinions by employment status, January-October 2006
• Appendix: General Attitudes by Age
  • Figure 65: Attitudes towards financial services, all respondents by age, January-October 2006