©UFS The Boomer Opportunity: Tapping the Expertise of the MetLife Mature Market Institute® Barbara Howard Gerontology Consultant MetLife Mature Market Institute May 2006

2 “I get the ‘boomer’ part but I don’t get the ‘baby’ part.”

3 MetLife’s comprehensive resource on aging, retirement, and long-term care for MetLife and its business partners. Research & Polls Public Education & Policy Facts, Stats, Information Training & Education Consultation Mature Market Institute

4 Media Leadership The Mature Market Institute positioned to provide Thought Leadership for MetLife Sponsored Retirement Income IQ media event to dispel myths and misconceptions about annuities Sponsored Long-Term Care IQ media event to dispel myths and misconceptions about long-term care Expert resource to major media resulting in coverage in the Wall Street Journal, the New York Times, CNN, ABC World News Tonight, and USA Today.

5 Today’s Presentation  Demographic Profile  Life Stages and Behaviors  Retirement and Beyond  How the MMI can help you

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7 Meanwhile, outside the park Two Stones tickets please, Senior Discount

Millions Age Baby Boomers Baby Boomers As of 2006 Source: MetLife Mature Market Institute Analysis Population Projections Program US Census Bureau, 2000 Boomers are getting older …

9 Boomers Have Unique Characteristics Working Women More Education Health/Wellness Personal Growth Involvement And Activism Spenders not Savers

10 Boomer Formative Years

11 Longevity…The Greatest Risk

12 Longevity “IQ” Low An individual who reaches age 65 has a life expectancy of age 85. What are the chances he or she will live beyond that age? a)0 b)25% c)50% d)100% Source: MetLife Retirement Income Survey, 2003

13 How do Boomers Feel about Retirement?

14 Boomers are Anxious About Retirement The number of boomers worried about retirement has almost doubled in four years. Younger boomers (41- 49) are more likely to worry about retirement than older boomers (50- 59) 39% vs. 30% Source: The MetLife Survey of American Attitudes Toward Retirement: What’s Changed?, October 2005

15 And Are Unwilling to Spend Less to Leave an Inheritance Likelihood of Spending Less in Retirement to Leave Money for Others Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

16 Many Plan to Keep Working… Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

17 To Keep Active and for Financial Reasons Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

18 Aging and Disability Disabilities over Age 65Prevalence of Alzheimer’s Disease Source: U.S. Dept. of Health & Human Services, July 2002 Source: Survey of Income and Program Participation, U.S.Census Bureau, March % 37.6% 16.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% % With Any Disability % With Severe Disability % Need Assistance 47% 19% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

19 Perspectives on Caregiving and Long-Term Care

20 “There are only four kinds of people in this world... Those who have been caregivers Those who currently are caregivers Those who will be caregivers Those who will need caregivers.” Rosalynn Carter, 1997

21  Women are working  More divorces  Fewer or no children  Geographic separation  Care recipients living longer Family Structures Have Changed

M Caregivers 46 Average Age of Caregiver 61% Women 4.3 Average Length of Care (Years) 59% Employed Source: Caregiving in The U.S., National Alliance for Caregiving & AARP, April 2004 Caregiver Profile

23 Annual Market Survey of Nursing Home, Home Care, and Assisted Living Costs Covers 87 major markets Source: The MetLife Market Survey of Nursing Home & Home Care Costs, 2005, The MetLife Market Survey of Assisted Living Costs, 2005

Major Findings National average for a private room in a nursing home $203/day or $74,095 annually National average for a semi-private room in a nursing home $176/day or $64,240 annually National average for a private room in an assisted Living facility $2,905/month or $34,860 annually Average hourly rate for Home Health Aid $19/hour Average hourly rate for Homemaker/companion $17/hour Source: The MetLife Market Survey of Nursing Home & Home Care Costs, 2005, The MetLife Market Survey of Assisted Living Costs, 2005

25 First major study of long-distance caregiving since 1997 Exclusive coverage in the Wall Street Journal and reported in major national media Source: Miles Away: The MetLife Study of Long-Distance Caregiving, 2004

26 Miles Away Major Findings Caregivers live an average of 450 miles from care recipient and spend $392 monthly on travel and out-of- pocket expenses 80% work either full or part-time 44% rearrange work schedules 36% miss days of work 12% took a leave of absence Source: Miles Away: The MetLife Study of Long-Distance Caregiving, 2004

27 Sons at Work Balancing Employment and Eldercare Men are just as likely as women to be the primary caregiver Women perform more personal tasks than men Both men and women have little knowledge about company- sponsored programs Source: The MetLife Study of Sons at Work, 2003

28 Study of Employed Caregivers: Does LTCI Make a Difference? Employed caregivers of elders with LTCI are nearly twice as likely to stay in the workforce and have fewer social stresses Source: The MetLife Study of Employed Caregivers: Does Long Term Care Insurance Make a Difference, 2001

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30 Retirement Looming on The Horizon

31 Savings Rates Low Decreasing DB Plans Elimination of Retiree Health Benefits Rising Cost of Health Care Rising Cost of LTC Few are Planning Underestimate Longevity The Approaching Storm Uncertainty of Entitlements

32 Less than $25K $25K - $49,999 $50K - $99,999 $100K - $249,999 $250K+ Retirement Readiness Bad News Savings Rates are Low All Workers Ages Ages Ages Ages L0408JHEC(0807)MLIC-LD All figures are percentages.Source: EBRI, The 2006 Retirement Confidence Survey

33 Workers with Pension Coverage By Type Of Plan Source: U.S.Department of Labor (2002) and authors estimates based on Board of Governors, Survey of Consumer Finances (2001). From EBRI Issue Brief, January 2005

34 Retirement – Ready or Not? If we take a late retirement and an early death, we’ll just squeak by.

35 Progress Toward Retirement Savings Goals Employee Perceptions of Progress Toward Retirement Savings Goals Source: MetLife Employee Benefit Trends Study

36 Another Way to Look at It Source: AARP, Boomers Approaching Midlife: How Secure a Future:, % Financially Secure $75,000+ income adequate savings 55% Caught in the Middle $25,000 - $75,000 income Some savings 25% Financially Vulnerable $25,000 or less income No savings AARP, Boomers Approaching Midlife: How Secure a Future Baby Boomer Finances

37 Glass Half Empty….Or Half Full

38 Boomer Window of Opportunity  Not yet retired  Better educated  Healthier  Interested in second careers  Not as concerned with leaving an inheritance  Assets in homes  Open to advice and assistance

39 Longevity Basics First  Income for life  Provide for spouse/dependents  Long-term care protection  Health care coverage  Legacy

40 The New Face of Aging

41 Barbara Howard MetLife Mature Market Institute 57 Greens Farms Road Westport, CT (203) Website Metropolitan Life Insurance Company, New York, NY L06019SOI(exp0108)MLIC-LD