What are they thinking?! Mapping the Mindset of the Retirement ConsumerExploring the Interconnected Emotional Pathways that Affect Investing C R (05/11)

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline About the Presenter ING2 Must obtain Compliance approval of text to use this slide; alternately, simply delete this slide Your Name

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING3 MENU SLIDE The Retirement Environment Psychology, Logic, Life & Investing Using Behavioral Finance to Change Behavior Whats it all mean? Open Forum I.II.III.IV.V.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline THE RETIREMENT ENVIRONMENT ING4 SECTION I

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline How we think people think MYTH: Planning is rational Investment decisions are based in fact ING5 Planning and investment decisions are driven by emotions. Planning and investment decisions are driven by emotions. FACT:

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline The Retirement Environment ING6 17% decline in general public covered by a Pension Plan Pensions have been cut to 1998: 12% increase in employees offered DC Plan

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING7 The Retirement Environment (cont.) ? ? WHY? Personal savings plans grow Defined Contribution (DC) Plans IRAs

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING12 Hyperbolic Discounting (cont) Get something now… … at the expense having something else in the future. Procrastination. RESULT:

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING13 Procrastination Common excuses to put off saving for retirement: When I get a raise Retirement is too far away A few weeks or days, or even a year wont make much difference Ill catch up later Ill sign up when I have time I cant afford it right now Im too busy

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING14 Price of Procrastination This chart is hypothetical and not intended to reflect the performance of any particular investment. It reflects the growth of an investment of $60 per month for 40 years, at 6% average annual return. If the investment were made in a tax-deferred vehicle such as an employers 401(k), 403(b) or 457 plan taxes would be due upon withdrawal at the investors current tax rate. The $115,000 Coffee Habit Hypothetical Tax-Deferred Growth

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING15 Loss Aversion The fear of losing: Family Friends Health Home Physical attributes Status Possessions Freedom

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING17 Hierarchy of Fears Source: Imagine That Affective Communications Study, co-sponsored by ING, not yet released. Data is based on a 2008 online Money Magazine survey. I cannot afford to live in my house and must sell it to live somewhere less expensive I cannot afford living expenses and need to ask my children for financial support I cannot afford to pay for a very expensive medical procedure for myself or my spouse I cannot afford living expenses and need to ask my children for financial support 49% 24% 17% 10%

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING19 Familiarity Bias (cont) Inferior asset allocation Too much allocation to one or a few stocks Preferences for local stocks or industries Preferences for cultural proximity Preferences for professional proximity (i.e., a doctor investing in medical stocks)* Source: Mind on my Money,

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING20 Information and Change Overload The amount of information a human being consumed in the 18th century in his whole life – is the same as a week of information in a regular newspaper. The amount of information a human being consumed in the 18th century in his whole life – is the same as a week of information in a regular newspaper. Evolution and Information Overload, wordpress.com, Design / Marketing / Philosophy, March 27, 2010

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING22 Too Much Information (cont) Another show of hands…

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING24 Lack of Control WORK STRESS AND HEALTH: the Whitehall II Study Public and Commercial Services Union on behalf of the Council of Civil Service Unions / Cabinet Office, © Source of data: Bosma, H., Peter, R. Siegrist, J. and Marmot, M.G. (1998). Two alternative job stress models and the risk of coronary heart disease. Am. J. Publ. Hlth. 1998;88: Likelihood of Coronary Heart Disease

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline { AVERAGE } Driver ING27 Self-Comparison (cont) Driver Aware Skills

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING29 Optimism Bias Most – if not all – individuals want to define themselves in favorable terms: People are more alike than they think What people believe about themselves, or what they would like to believe, doesnt vary much from person to person Each person is convinced that he or she is unique

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING30 Social Comparison 80% of drivers think they are above average drivers 94% of professors believe their work is above average 99% of students believe theyre above average in getting along with others Most Americans believe theyll earn above average income in the future The majority of CEOs think their companies will thrive more than their average industry competitors

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline USING BEHAVIORAL FINANCE TO CHANGE BEHAVIOR ING31 SECTION III

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING32 Using Behavioral Finance to Change Behavior How can this knowledge of human bias, behavior and impulses help us to encourage consumers to take action to build a more secure retirement for themselves?

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING37 Breakthrough Using peer comparison to improve retirement behavior. Using peer comparison to improve retirement behavior. Breakthrough: Test of Concept

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING40 The Personal Approach Source: Working with an Advisor: Improved Retirement Savings, Financial Knowledge and Retirement Confidence! ING North America Insurance Corporation, © 2010 Have you spent time working with a financial advisor to discuss your investments or plan your financial future?*

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING41 The Personal Approach (cont) Source: Working with an Advisor: Improved Retirement Savings, Financial Knowledge and Retirement Confidence! ING North America Insurance Corporation, © 2010 People who spend time with an advisor have more saved for retirement Spent time with advisor? No Yes, but only once or twice Yes, some time Yes, a lot of time 3x 1.5x 2x

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING42 The Personal Approach (cont) Source: Working with an Advisor: Improved Retirement Savings, Financial Knowledge and Retirement Confidence! ING North America Insurance Corporation, © 2010 People who spend time with an advisor are more likely to be moderate investors * People who spend less time with a financial advisor are more likely to be conservative investors People who spend more time with a financial advisor are more likely to be moderate investors There is little difference in aggressive investors

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING43 The Personal Approach (cont) Source: Working with an Advisor: Improved Retirement Savings, Financial Knowledge and Retirement Confidence! ING North America Insurance Corporation, © 2010 Increased time with an advisor increases financial knowledge and retirement confidence* Investment Knowledge Compared to Peers

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING44 The Personal Approach (cont) Source: Working with an Advisor: Improved Retirement Savings, Financial Knowledge and Retirement Confidence! ING North America Insurance Corporation, © 2010 Those with an advisor feel confident about retirement No 34% Yes, a lot of time 62% Yes, but only once or twice 39% Yes, some time 50% Confident About Enjoying Retirement Those who answered very confident or extremely confident

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline WHATS IT ALL MEAN? ING45 SECTION IV

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING46 This is Just the Beginning Sponsors have a desire to benchmark plans against plans of other similar companies Is participation higher or lower? Do they offer loans? Automatic enrollment? Investment options, diversification? Managed account? Matches? How much?

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline ING47 Using peer comparison to improve retirement We want to know what other people are doing.

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Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Important Information Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. The opinions, views and information expressed in this presentation are subject to change without notice based on market conditions and other factors. The information provided is not a recommendation to buy or sell any security. Products and services are offered through ING family of companies. Please log on to for information regarding other products and services offered through ING family of companies. Not all products are available in all states. © 2010 ING North America Insurance Corporation ING51