2010 Retirement Confidence Survey Funders’ Briefing February 18, 2010 Employee Benefit Research Institute 1100 13th Street NW, Suite 878 Washington, DC 20005 Phone: (202) 659-0670 Fax: (202) 775-6312 Mathew Greenwald & Associates, Inc. 4201 Connecticut Ave. NW, Suite 620 Washington, DC 20008 Phone: (202) 686-0300 Fax: (202) 686-2512

2010 RCS Methodology 20th annual measure of worker and retiree confidence about retirement 1,153 20-minute phone interviews conducted in January 2010 using random-digit dialing with cell phone supplement Interviewed Americans ages 25 and over Two questionnaire versions - 902 interviews with workers (not retired) - 251 interviews with retirees

2010 RCS Methodology (continued) Data weighted by age, sex, and education Margins of error - ± 3 percentage points for all respondents - ± 3 percentage points for all workers - ± 6 percentage points for all retirees Unweighted sample sizes noted on charts to provide information for margin of error estimates Data may not total to 100 due to rounding and/or missing categories

The Plunge in Retirement Confidence Is Slowing, Perhaps Even Stabilizing

Worker confidence about having enough money for a comfortable retirement is the same as in 2009. Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Retiree confidence about being able to afford a comfortable retirement also remains steady. Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Workers/retirees continue to be most confident about basic expenses, least confident about long-term care. Next, I would like to know how confident you (and your spouse) are about certain aspects related to retirement. (2010 Workers n=902, Retirees n=251) You will have enough money to take care of your basic expenses during your retirement You are doing/did a good job of preparing financially for retirement You will have enough money to take care of your medical expenses during your retirement You will have enough money to pay for long-term care should you need it during your retirement Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

The percentage of workers very confident about having enough money for basic expenses has increased. How confident are you that you (and your spouse) will have enough money to take care of your basic expenses during your retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Share of workers very confident about medical expenses is same, but share not confident has crept upwards. How confident are you that you (and your spouse) will have enough money to take care of your medical expenses during your retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Worker confidence about paying for long-term care shows similar pattern. How confident are you that you (and your spouse) will have enough money to pay for long-term care, such as nursing home or home health care, should you need it during your retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1998-2010 Retirement Confidence Surveys

And the same pattern holds for worker confidence in doing a good job preparing financially for retirement. How confident are you that you (and your spouse) are doing a good job of preparing financially for your retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Confidence is holding fairly steady among older workers. Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years? Percentage Very or Somewhat Confident Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2007-2010 Retirement Confidence Surveys

Percentage Very or Somewhat Confident Confidence also appears to have stabilized among workers by asset group. Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years? Percentage Very or Somewhat Confident Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2007-2010 Retirement Confidence Surveys

The share of retirees confident about having enough money for basic expenses has stabilized. How confident are you that you (and your spouse) will have enough money to take care of your basic expenses during your retirement? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

As has the share of retirees confident about having enough money to pay for medical expenses. How confident are you that you (and your spouse) will have enough money to take care of your medical expenses during your retirement? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

The percentage of retirees not at all confident about their ability to pay for long-term care has decreased. How confident are you that you (and your spouse) will have enough money to pay for long-term care, such as nursing home or home health care, should you need it during retirement? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1998-2010 Retirement Confidence Surveys

Retiree confidence in having done a good job of preparing financially for retirement remains steady. How confident are you that you (and your spouse) did a good job of preparing financially for your retirement? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

A majority say they are getting the information they need to make sound decisions about retirement. Please tell me how well each of the following statements describes you? (2010 Workers n=902, 2010 Retirees n=251) You are getting all the information you need in order to make sound financial decisions for your retirement. If something happens and you are forced to retire two years earlier than planned, you will still be able to retire comfortably. You worry about being financially dependent on others during your retirement/later years. Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Some Americans Report Decreased Retirement Preparation

The percentage of workers saying they have done a retirement needs calculation remains steady. Have you (or your spouse) tried to figure out how much money you will need to have saved by the time you retire so that you can live comfortably in retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2010 Retirement Confidence Surveys

Many think they need little in savings to live comfortably in retirement. How much did you (or your spouse) calculate you would need to accumulate in total by the time you retire? If haven’t calculated: How much do you think you (and your spouse) will need to accumulate in total by the time you retire so that you can live comfortably in retirement? Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Workers who do a calculation are gradually increasing their retirement savings goals. How much did you (or your spouse) calculate you would need to accumulate in total by the time you retire? (Among those doing a needs calculation, 2010 Workers n=486) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2000-2010 Retirement Confidence Surveys

But many guess at how much they will need. How did you (or your spouse) determine this amount? Did you…? (Among workers giving an amount needed for retirement) (Top mentions, multiple responses accepted) Guess Read or hear that is how much needed Fill out a worksheet or form Advice of family or friends Use an online calculator Do your own estimate Ask a financial advisor Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009 Retirement Confidence Survey

Only about half say they are confident they will be able to reach their savings goal. How confident are you that you (and your spouse) will be able to accumulate this amount by the time you retire? Would you say you are…? (Among workers giving an amount needed for retirement) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

The proportion of workers who report saving for retirement is back down to the level of 2008. Not including Social Security taxes or employer-provided money, have you (and/or your spouse) personally saved any money for retirement? These savings could include money you personally put into a retirement plan at work. (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1994-2010 Retirement Confidence Surveys

The proportion of workers saying they are currently saving is also lower than in 2009. Are you (and/or your spouse) currently saving for retirement? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2001-2010 Retirement Confidence Surveys

But the percentage of retirees who report having saved is back up to 2007 levels. Not including Social Security taxes or employer-provided money, did you (and/or your spouse) personally save any money for retirement before you retired? These savings could include money you personally put into a retirement plan at work. (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1994-2010 Retirement Confidence Surveys

The large majority of those who don’t save say it is because they cannot afford to. What would you say is the main reason why you (and your spouse) have not/did not personally save any money for retirement/before you retired? (Top mentions, multiple responses accepted) You cannot/could not afford to save Just haven’t/never got around to it You have/thought you had plenty of time to save Ignorant, not informed about retirement Retirement is/seemed too far away You (will) have a pension/other income (You thought) Social Security will/would be enough You have/had other saving priorities Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Total worker savings are lower than last year. In total, about how much money would you say you (and your spouse) currently have in savings and investments, not including the value of your primary residence? (2010 workers providing information n=748) 2002 2005 2006 2007 2008 2009 2010 Less than $1,000 50% 52% 39% 35% 36% 20% 27% $1,000 - $9,999 19 16 $10,000 - $24,999 14 13 11 $25,000 - $49,999 12 10 $50,000 - $99,999 15 $100,000 - $249,999 $250,000 or more 7 Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2002-2010 Retirement Confidence Surveys

Retiree savings remain about the same. In total, about how much money would you say you (and your spouse) currently have in savings and investments, not including the value of your primary residence? (2010 retirees providing information n=169) 2002 2005 2006 2007 2008 2009 2010 Less than $1,000 45% 43% 30% 32% 51% 23% 27% $1,000 - $9,999 17 15 $10,000 - $24,999 12 13 9 16 14 $25,000 - $49,999 7 20 10 11 $50,000 - $99,999 6 $100,000 - $249,999 19 $250,000 or more 21 Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2002-2010 Retirement Confidence Surveys

Three-quarters of workers are offered a retirement savings plan; 8 in 10 of those contribute. Does your current employer offer you a retirement savings plan that allows you to make contributions from your salary to an individual account set up in your name, such as a 401(k), tax-deferred annuity or 403(b), or 457 thrift savings plan? (2010 Workers employed full or part time n=661) If yes, are you currently contributing to the plan? (2010 Workers offered a plan n=518) Percentage of Employed Workers Offered Plan Percentage of Workers Offered Plan Who Contribute If yes Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1996-2010 Retirement Confidence Surveys

Workers are more confident than last year that they are investing their retirement savings wisely. How confident are you that you (and your spouse) are investing your retirement savings wisely? (2010 Workers who have saved for retirement n=706) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1998-2010 Retirement Confidence Surveys

Retiree confidence about their investments is unchanged. How confident are you that you (and your spouse) are investing your retirement savings wisely? (2010 Retirees who have saved for retirement n=194) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009-2010 Retirement Confidence Surveys

Confidence in stocks shows signs of rebounding. Please tell me how well does the following statement describe you: Over the long-run – 10 to 20 years – you believe stocks in general will be a very good investment (2010 Workers n=902, 2010 Retirees n=251) Workers Retirees Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2000-2010 Retirement Confidence Surveys

Workers Are Adjusting Some of Their Expectations About Retirement

Almost 3 in 10 workers say they changed the age at which they expect to retire in the past year. In the past 12 months, has the age at which you expect to retire changed? (2010 Workers n=902) If yes: Do you now expect to retire…? (2010 Workers whose retirement date changed n=252) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

This means that 1 in 4 workers are planning to delay retirement. Do you now expect to retire later, at an older age than before? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2002-2010 Retirement Confidence Surveys

The poor economy heads the list of reasons why workers are postponing retirement. Why have you changed your expected retirement age? (Among workers planning to retire later, n=221) (Top mentions, multiple responses accepted) Poor economy 29% Change in employment situation 22% Finances, can’t afford to retire 16% Need to make up for losses in the stock market 12% Lack of faith in Social Security/government 7% Cost of living in retirement will be higher than expected 7% Need to pay current expenses first 6% Want to make sure you have enough money to retire comfortably 6% Aren’t sure how the stock market will perform 5% Health care costs 4% Law changed the minimum retirement age 4% Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Nevertheless, most workers continue to expect to retire at about age 65. Realistically, at what age do you expect to retire?/How old were you when you retired? Median Workers 65 Retirees 62 Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

The proportion of workers expecting to retire after age 65 is growing, but more slowly than previous data suggest. Realistically, at what age do you expect to retire? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

The actual age at retirement reported by retirees shows less change. How old were you when you retired? (2010 Retires n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

Perhaps this is because so many retirees leave the workforce before they had planned. Did you retire earlier than you planned, later than you planned, or about when you planned? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

People retire early for a variety of reasons, many beyond their control. Did you retire earlier than you planned because…? (2010 Retirees retiring earlier than planned n=108) Percentage Saying Yes Changes in the skills required for your job You could afford to retire earlier than planned There were changes at your company, such as downsizing or closure You had a health problem or disability You wanted to do something else You had to care for a spouse or another family member You had another work-related reason Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

7 in 10 workers plan to work for pay in retirement. Do you think you will do any work for pay after you retire? (2010 Workers n=902) Have you worked for pay since you retired? (2010 Retirees n=251) Percentage Saying Yes Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1998-2010 Retirement Confidence Surveys

Almost all retirees who worked in retirement give a positive reason for doing so. Is the following a major reason, a minor reason, or not a reason why you worked for pay after you retired? (2010 Retirees who worked for pay n=73) Wanting to stay active and involved Enjoying working A job opportunity Needing money to make ends meet Wanting money to buy extras A decrease in the value of your savings or investments Keeping health insurance or other benefits Trying a different career Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Few retirees who haven’t already worked in retirement expect to return to work. Realistically, how likely do you think you are to work for pay some time in the future? (2010 Retirees who have not worked for pay in retirement n=175) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009-2010 Retirement Confidence Surveys

Workers still expect to spend less in retirement than retirees report spending. How do you think your (and your spouse’s) spending in the first five years of retirement will compare with your spending in the five years before you retire?/How did your (and your spouse’s spending in the first five years of retirement compare with your spending in the last five years before you retired? Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

But the percentage of workers saying they will spend less in retirement is even with last year. How do you think your (and your spouse’s) spending in the first five years of retirement will compare with your spending in the five years before you retire? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2007-2010 Retirement Confidence Surveys

Reported spending by retirees shows no change. How did your (and your spouse’s) spending in the first five years of retirement compare with your spending in the last five years before you retired? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2007-2010 Retirement Confidence Surveys

More than 2 in 5 retirees made adjustments in spending last year due to changes in the value of investments. Did you (and your spouse) make any adjustments to your spending in the past year as a result of any changes in the value of your savings and investments? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Most retirees rely on Social Security income, but workers plan to patch income together from many sources. Do you expect the following will be/Is the following a major source of income, a minor source of income, or not a source of income in your (and your spouse’s) retirement? (2010 Workers n=902, 2010 Retirees n=251) Workers Retirees Employer-sponsored retirement savings plan Other personal savings and investments Social Security Individual retirement account or IRA Employer-sponsored traditional pension or cash balance plan Employment Workers Retirees Workers Retirees Workers Retirees Workers Retirees Workers Retirees Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

The percentage of workers expecting income a DB plan is decreasing. Do you expect the following to be a major source of income, a minor source of income, or not a source of income in your (and your spouse’s) retirement? (2010 Workers n=902) Percentage Saying Major or Minor Source Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

Percentage Saying Major or Minor Source The percentage of retirees reporting DB plan income is lower than in 2005. Is the following a major source of income, a minor source of income, or not a source of income in your (and your spouse’s) retirement? (2010 Retirees n=251) Percentage Saying Major or Minor Source Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

Percentage Saying Major or Minor Source Workers’ expected reliance on other personal savings has decreased slightly since 2008. Do you expect the following to be a major source of income, a minor source of income, or not a source of income in your (and your spouse’s) retirement? (2010 Workers n=902) Percentage Saying Major or Minor Source Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

The share of retirees relying on income from DC plans is increasing. Is the following a major source of income, a minor source of income, or not a source of income in your (and your spouse’s) retirement? (2010 Retirees n=251) Percentage Saying Major or Minor Source Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1991-2010 Retirement Confidence Surveys

Workers are as likely to expect retiree health insurance from an employer as retirees are to receive it. Do you (and/or your spouse) (expect to receive/receive) retiree health insurance from an employer? (2010 Workers n=902; 2010 Retirees n=251) Percentage Saying Yes Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2004-2010 Retirement Confidence Surveys

The share of workers very confident about future benefits from Social Security has remained steady. How confident are you that the Social Security system will continue to provide benefits of at least equal value to the benefits received by retirees today? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1992-2010 Retirement Confidence Surveys

While the share of retirees very confident about Social Security has eroded since 2001. How confident are you that the Social Security system will continue to provide benefits of at least equal value to the benefits received by retirees today? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1992-2010 Retirement Confidence Surveys

The proportion of workers very confident about future benefits from Medicare has stayed at 1 in 20 since 2000. How confident are you that the Medicare system will continue to provide benefits of at least equal value to the benefits received by retirees today? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1992-2010 Retirement Confidence Surveys

The share of retirees very confident about Medicare is also eroding. How confident are you that the Medicare system will continue to provide benefits of at least equal value to the benefits received by retirees today? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1992-2010 Retirement Confidence Surveys

Some Americans Support Measures Designed to Increase Financial Security in Retirement

While workers favor scaling back Social Security benefits, retirees favor raising the eligibility age. In order to resolve [the financial difficulties facing Social Security], would you strongly favor, somewhat favor, somewhat oppose, or strongly oppose…? (Workers n=902, Retirees n=251) Gradually reducing the current rate of benefits, so people with higher incomes have their benefits cut back more than those with lower incomes Raising the age at which people can begin receiving full retirement benefits by one year Raising the payroll tax paid by workers from 6.2% to 7.2% Reducing the current rate of benefits by 5% for all new recipients

More than 3 in 5 favor gradually increasing the cost of Medicare premiums. In order to resolve [the financial difficulties facing Medicare], would you strongly favor, somewhat favor, somewhat oppose, or strongly oppose…? (Workers n=902, Retirees n=251) Gradually increasing the cost of benefits to individuals, so people with higher incomes pay higher premiums than people with lower incomes Raising the payroll tax paid by workers from 1.45% to 1.95% Raising the age at which people are first eligible for benefits from 65 to 66

Only a minority of workers support changes to permitted withdrawals from DC plans. Would you strongly favor, somewhat favor, somewhat oppose or strongly oppose changing employer retirement savings plans so that… ? (2010 Workers n=902) Workers could not withdraw any money at all until they reach age 66 or leave their job Workers could not take a loan against their money in the plan Workers could not make a hardship withdrawal Workers had to use $100,000 or half of their plan money, whichever is less, to purchase an annuity Workers had to take money in a series of withdrawals and could not withdraw all of the money at once Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Just 1 in 10 workers think they are very likely to get a guaranteed income product when they retire. When you (and your spouse) retire, how likely do you think you (or your spouse) will be to purchase a financial product or select a retirement plan option that will pay you guaranteed income each month for the rest of your life? Will you be…? (2010 Workers n=902) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Slightly more than 1 in 10 retirees say they have a guaranteed income product. When or since you (or your spouse) retired, did you (or your spouse) purchase a financial product or select a retirement plan option that pays you guaranteed income each month for the rest of your life? (2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Top reasons cited for not getting a guaranteed income product are affordability and other sources of income. Why do you think you (and your spouse) will be unlikely to purchase a financial product or select a retirement plan option that will pay you guaranteed income each month in retirement?/ Why did you (and your spouse) not purchase a financial product or select a retirement plan option that will pay you guaranteed income each month? (Among those not intending to get/not getting a guaranteed income product) (Top mentions, multiple responses accepted) Can’t afford it Already have a pension/ investments/income Do/Did not know enough about the product Feel/felt you could do better managing the money yourself Did not know that was an option Don’t trust them/ don’t believe in them Not interested/ not going to purchase one Not offered one at work Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Workers are less likely to have confidence in the federal government than in banks or insurance companies. In general, how confident would you say you are about…? (2010 Workers n=902) Private employers Banks Insurance companies The federal government Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009-2010 Retirement Confidence Surveys

Retiree confidence in institutions is declining. In general, how confident would you say you are about…? (2010 Retirees n=251) Private employers Banks Insurance companies The federal government Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009-2010 Retirement Confidence Surveys

Only 1 in 3 say they sought investment advice from a professional financial advisor in 2009. In the past year, did you seek investment advice from a professional financial advisor? (2010 Workers n=902, 2010 Retirees n=251) Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009-2010 Retirement Confidence Surveys

Americans also turn to family, friends, and co-workers for financial advice. Where (else) have you (and your spouse) turned for financial advice? (Top mentions, multiple responses accepted) Family, friends, or co-workers Financial professional Newspapers or magazines Information available over the internet Bank/credit union Myself/my own research Employer Company managing employer-sponsored plan Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2010 Retirement Confidence Survey

Respondent Profile

2010 RCS Respondent Profile Workers Retirees (n=902) (n=251) % % Gender Male 50 43 Female 50 57 Age 25 to 34 26 -- 35 to 44 27 <.5 45 to 54 27 4 55 to 64 17 18 65 to 74 3 38 75 and older <.5 40 Median Age 44 years 72 years Education Some high school or less 11 22 High school graduate 30 37 Some college/trade or business school 27 21 4-year college degree 21 11 Graduate degree 11 8

2010 RCS Respondent Profile (continued) Workers Retirees (n=902) (n=251) % % Marital Status Married 57 50 Divorced/Separated 16 11 Single, never married 16 4 Not married, living with a partner 8 3 Widowed 3 32 Ethnicity African American/Black 12 5 Asian/Pacific Islander 1 <.5 Hispanic/Latino 6 1 White/Caucasian 74 91 Other 4 1 Health Status Excellent 25 12 Very good 34 24 Good 24 33 Fair 11 19 Poor 4 12

2010 RCS Respondent Profile (continued) Workers Retirees (n=902) (n=251) % % Household Income Less than $25,000 24 37 $25,000 to $49,999 21 23 $50,000 to $74,999 18 10 $75,000 or more 28 9 Don’t know/Refused 9 22 Employment Status Employed full-time 58 1 Employed part-time 9 4 Self-employed 8 2 Retired -- 77 Other 24 16 Employment Status of Spouse (if married) (n=562) (n=143) Employed 71 18 Retired 4 71 Something else 24 11