July 2009 SHRM Poll – The U.S. Recession and Its Impact on Employee Retirement

©SHRM 2009 SHRM Poll July 6, What, if any, action related to employee investments/retirement planning is your organization MOST LIKELY to take in the coming months in light of the current financial challenges to the U.S. economy? Note: Respondents who answered “Not applicable” were excluded from this analysis. Percentage s do not total 100% as multiple response options were allowed.

©SHRM 2009 SHRM Poll July 6, 2009 In the past 12 months, has there been an increase, a decrease or no change in the number of employees… 3 IncreaseDecreaseNo change Planning to extend their retirement date due to the recession? —68%—0% —32% Reducing their 401(k) contribution? —67%—2%—31% Suspending contribution to their 401(k)? —62%—2%—36% Asking for advances on their 401 (k) savings?39%49%3%1%59%50% Requesting for more guidance and information specific to investing/retirement planning? —47%—1%—52% Reporting losing their homes (due to foreclosure/inability to pay rent, other reasons)?14%30%0% 86%70% Having their wages garnished by collection agencies?26% 6%1%68%73% Not rolling over their 401(k) savings after employment termination?—21%—3%—76% Cashing out (i.e., prematurely before reaching retirement age) their 401(k) savings completely?—18%—0%—81% Asking for advances on their wages?20%16%2%1%77%83% Increasing their 401(k) contribution? —10%—35%—55% n = Note: Respondents who answered “Don't know” were excluded from this analysis. A dash (—) indicates that this particular option was not available in 2008 The respondents who indicated increases in the number of employees planning to 1) extend their retirement date; 2) reduce their 401 (k) contribution; 3) suspend contribution to their 401 (k) attributed the increase to: Fears about decline in financial security (e.g., dissatisfaction with 401(k) performance, diverting 401(k) funds/other funds to personal savings account). Decreases in household income.

©SHRM 2009 SHRM Poll July 6, Does your organization automatically enroll its employees into your organization’s defined contribution retirement savings plan (i.e., 401(k)), meaning that employees are placed into the plan unless they opt out? Source: 2009 Employee Benefits: A Survey Report by SHRM

©SHRM 2009 SHRM Poll July 6, 2009 In your automatic enrollment plan, what is the default percentage of salary that is deferred? 2006 (n = 65)2009 (n = 189) Less than 2%21% 2 to 4%54%68% 5 to 7%10%9% 8% or more8%2% Other7%0% 5 NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.

©SHRM 2009 SHRM Poll July 6, 2009 Of the employees automatically enrolled in your defined contribution retirement savings plan, approximately what percentage have opted out or chosen not to participate? 2006 (n = 65)2009 (n = 189) Less than 1%60%51% 1 to 2%22%26% 3 to 4%8%13% 5% or more10% 6 NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.

©SHRM 2009 SHRM Poll July 6, Does your organization’s defined contribution retirement savings plan include a feature that automatically increases employees’ deferral rates (i.e., participant contribution rates are automatically increased each year)?

©SHRM 2009 SHRM Poll July 6, 2009 Have you seen an increase in the number of employees opting out of your organization’s automatic employee deferral rate? Differences by Organization Staff Size SmallMediumLarge Yes23%19%26% No77%81%74% 8 n = 307 Note: Excludes respondents who answered “don’t know”.. Organization staff size: small = 1-99 employees, medium = employees, large = 500 or more employees

©SHRM 2009 SHRM Poll July 6, 2009 Are employees at your organization more or less confident about the adequacy of their retirement savings now compared with six months ago? 9 n = 518 Note: Excludes respondents who answered “Not sure.”

©SHRM 2009 SHRM Poll July 6, 2009 In the past 12 months, has there been an increase, a decrease or no change in the number of employees at your organization getting more involved in the management of their retirement plan? 10 n = 518 Note: Excludes respondents who answered “Not sure.”

©SHRM 2009 SHRM Poll July 6, 2009 What do you see as the biggest threat to the retirement savings of employees at your organization? 11 n = 521

©SHRM 2009 SHRM Poll July 6, 2009 How confident are you that your organization’s retirement savings option is meeting your employees’ retirement needs? Differences by Organization Staff Size SmallMediumLarge Very confident 20%26%24% Somewhat confident 58%59% Not at all confident 22%16%18% n = 514 Note: Organization staff size: small = 1-99 employees, medium = employees, large = 500 or more employees

©SHRM 2009 SHRM Poll July 6, 2009 What percentage of the employees at your current location are in each generation? 13 n = 440

©SHRM 2009 SHRM Poll July 6, n = 502 Organization Staff Size

©SHRM 2009 SHRM Poll July 6, Organization Sector n = 507

©SHRM 2009 SHRM Poll July 6, 2009 SHRM Poll – The U.S. Recession and Its Impact on Employee Retirement Response rate = 12% Sample comprised of 563 randomly selected HR professionals from SHRM’s membership. Margin of error = +/- 5%. Survey fielded the week of July 6, Methodology