1. 2012 Retirement Confidence Survey Funders’ Briefing
February 22, 2012
Employee Benefit Research Institute th Street NW, Suite 878 Washington, DC Phone: (202) Fax: (202)
Mathew Greenwald & Associates, Inc Connecticut Ave. NW, Suite 620 Washington, DC Phone: (202) Fax: (202)

2. 2012 RCS Methodology
22nd annual measure of worker and retiree confidence about retirement
1, minute phone interviews conducted in January 2012 using random-digit dialing with cell phone supplement
Interviewed Americans ages 25 and over
Two questionnaire versions ,003 interviews with workers (not retired) interviews with retirees

3. 2012 RCS Methodology (continued)
Data weighted by age, sex, and education
Margins of error - ± 4 percentage points for all workers - ± 7 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

4. Overview Retirement confidence is basically stagnant
Concerns about preparing for retirement are overshadowed by more immediate financial concerns
The percentage saving for retirement is slowly falling
Newer technologies are generally not used to help with financial planning

5. Retirement confidence

6. Worker confidence about having enough money for retirement is essentially unchanged.
Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

7. 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? (2012 Retirees n=259)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

8. 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. (2012 Workers n=1003, Retirees n=259)
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., 2012 Retirement Confidence Surveys

9. The share of workers somewhat confident about future benefits from Social Security has increased slightly.
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? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

10. While the share of retirees very confident about Social Security has increased.
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? (2012 Retirees n=259)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

11. The proportion of workers confident about future benefits from Medicare has returned to 2010 levels.
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? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

12. But the proportion of retirees not at all confident about Medicare benefits has increased.
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? (2012 Retirees n=259)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

13. OTHER FINANCIAL CONCERNS

14. Roughly 6 in 10 workers and 4 in 10 retirees report a problem with debt.
Thinking about your current financial situation, how would you describe your level of debt? (2011 Workers n=1003, 2010 Retirees n=259)
Workers
Retirees
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

15. And the presence of debt is strongly related to retirement confidence.
Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

16. By far, the financial issue considered most pressing is job uncertainty.
What do you think is the most pressing financial issue facing most Americans today? (Top mentions)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

17. Only a minority express confidence in the immediate financial future.
How confident are you that…. (2012 Workers n=1003, Retirees n=259)
You will have paid employment for as long as you need it/You will find paid employment if you should need it
Your investments will grow in value
The economy will grow an average of at least 3% a year for the next 10 years
Inflation will average no more than 4% for the next 10 years
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Surveys

18. These concerns are also strongly related to retirement confidence.
Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughout your retirement years?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

19. Preparations for retirement

20. About 2 in 3 retirees indicate they planned financially for their retirement.
Did you (or your spouse) plan financially for your retirement? (2012 Retirees n=259, Percent Yes)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

21. Of these, 3 in 10 started planning less than 10 years before they retired.
When did you (or your spouse) begin to pay serious attention to planning financially for your retirement? (2012 Retirees who planned financially for retirement n=178)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

22. The percentage of workers doing 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? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

23. The likelihood of doing a calculation increases with household income.
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?
Workers with Household Income <$35,000
Workers with Household Income $35,000-$74,999
Workers with Household Income $75,000+
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

24. Many still 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? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

25. 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)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2011 Retirement Confidence Survey

26. Two-thirds of workers report having saved for retirement, a slow decline since 2009.
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. (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

27. This decline has occurred primarily among lower-income workers.
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.
Workers with Household Income <$35,000
Workers with Household Income $35,000-$74,999
Workers with Household Income $75,000+
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

28. The percent of workers currently saving for retirement has also slowly declined during this period.
Are you (and/or your spouse) currently saving for retirement? (Percent Yes, 2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

29. Two-thirds of retirees report they saved for retirement.
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. (2012 Retirees n=259)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

30. Total worker savings are unchanged from 2010.
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? (2012 workers n=1003)
2002
2007
2008
2009
2010
2011
2012
Less than $1,000
50%
35%
36%
20%
27%
29%
30%
$1,000 - $9,999 19 16 17 18
$10,000 - $24,999 13 11 10 12
$25,000 - $49,999
$50,000 - $99,999 15 9
$100,000 - $249,999 14
$250,000 or more 7
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

31. Retiree savings also 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? (2012 retirees n=259)
2002
2007
2008
2009
2010
2011
2012
Less than $1,000
45%
32%
51%
23%
27%
28%
$1,000 - $9,999 17 15 14 19
$10,000 - $24,999 13 9 16 12 8
$25,000 - $49,999 7 10 11 6
$50,000 - $99,999
$100,000 - $249,999 20
$250,000 or more
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

32. 2 in 3 workers feel they are behind schedule in planning and saving for retirement.
When it comes to planning and saving for retirement, would you say that you are ahead of schedule, on track, or behind schedule? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

33. USE OF TECHNOLOGY AND advice

34. Half of workers and only one-quarter of retirees use the internet to help manage their finances.
Do you currently use … to help you manage your finances? (2012 Workers n=1003, Retirees n=259, Percent yes)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Surveys

35. Few use a smart phone app or tablet computer to manage their finances.
Do you currently use … to help you manage your finances? (2012 Workers n=1003, Retirees n=259, Percent yes)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Surveys

36. Just one in ten using the internet to manage finances are very confident about obtaining advice online.
When it comes to preparing for retirement/managing your finances in retirement, how comfortable are you about doing each of the following online? (2012 Workers using internet n=654, Retirees using internet n=101)
Obtaining information about financial products online
Using calculators online to assist you with financial decisions
Shifting money from one account or investment to another
Purchasing financial products online
Obtaining advice from financial professionals online
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Surveys

37. Roughly 1 in 4 workers and retirees report obtaining investment advice from a professional advisor.
In the past year, did you (and your spouse) obtain investment advice from a professional financial advisor who was paid through fees or commissions? (2012 Workers n=1003, 2012 Retirees n=259, Percent Yes)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

38. Expectations about retirement

39. 1 in 4 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? (2012 Workers n=1003) If yes: Do you now expect to retire…? (2012 Workers whose retirement date changed n=261)
If yes
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

40. 1 in 5 workers have decided to delay retirement in the past year.
Do you now expect to retire later, at an older age than before? (2012 Workers n=1003)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

41. One-quarter of workers expect to retire at age 70 or later.
Realistically, at what age do you expect to retire?/How old were you when you retired?
Median
Workers 65
Retirees 61
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

42. Yet 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? (2012 Retirees n=259)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

43. People retire early for a variety of reasons, many beyond their control.
Why did you retire earlier than you had planned? (2012 Retirees retiring earlier than planned n=131, Percent yes)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

44. 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? (2012 Workers who plan to retire n=934, Retirees n=259)
Social Security
Employment
Employer-sponsored retirement savings plan
Individual retirement account or IRA
Other personal savings and investments
Employer-sponsored traditional pension or cash balance plan
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey

45. 1 in 10 workers say they are very likely to buy or choose a guaranteed income product.
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? (2012 Workers who plan to retire n=934)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys

46. A similar proportion of retirees report having bought an annuity or chosen an annuity option.
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? (2012 Retirees n=259)
2010
2012
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., Retirement Confidence Surveys