Retirementality - US

Published by: Mintel International Group Ltd.

Published: May. 1, 2006 - 133 Pages

Table of Contents

INTRODUCTION

Other relevant reports

Scope of the report

Abbreviations and terms

Abbreviations

EXECUTIVE SUMMARY

EXPECTATIONS FOR “PRIME TIME”

CHANGING TERMINOLOGY REFLECTS THE EVOLUTION

NEED FOR AN INDIVIDUALIZED APPROACH

IMPLICATIONS FOR THE INDUSTRY

THE PSYCHOLOGY OF RETIREMENT

THE “NEW” OLD

AGING NO LONGER A LIABILITY

KEY CHARACTERISTICS OF THE BABY BOOMER GENERATION

Figure 1: How financially secure do you feel about your retirement?, respondents age 55+, January-September 2005

Baby Boomers envision retirement

Healthcare concerns dominate as a financial worry

Importance of personal savings

Shifts in retirement destinations

Figure 2: Current top ten relocation states for retirees age 60+

PSYCHOLOGICAL PREPARATION AS A PRELUDE TO FINANCIAL PLANNING

Figure 3: Positive responses to “If I won the lottery I would never work again”, by age, January-September 2005

New retirement mindscape

The five stages of retirement

Figure 4: Positive responses to “Would rather have a boring job than no job”, by age, January-September 2005

Figure 5: Positive responses to “I am happy with my standard of living”, by age, January-September 2005

Regional differences

Retirement priorities

Figure 6: Positive responses to “How I spend my time is more important than money”, by age, January-September 2005

Figure 7: Positive responses to “Prefer to work as part of a team rather than alone”, by age, January-September 2005

Figure 8: Positive responses to “I feel secure financially”, by age, January-September 2005

Figure 9: Positive responses to “I provide my kids with things I didn’t have”, by age, January-September 2005

Paths of retirement

Finding new identities in retirement

Need for psychological preparation

Coping with retirement

WORK PATTERNS AND THE NEW “RETIREMENTALITY”

Working longer and phasing in

Working while retired

Figure 10: Positive responses to “Money is the best measure of success”, by age, January-September 2005

Older workers still needed

Reasons for working

Figure 11: Factors in the decision to work in retirement, 2003

Benefits of phased retirement

Preparing for a working retirement

Figure 12: Positive responses to “I would like to set up my own business”, by age, January-September 2005

Retiring, then returning to work

Why non-working retirees return to work

Reasons for returning to work

Household debt and the need to keep working

Figure 13: Home ownership rate, by age, 2001 and 2004

Figure 14: Household holdings of debt, by age, 2001-04

Figure 15: Number of respondents who have home equity loan, by age, January-September 2005

FINANCIAL ATTITUDES

ANXIETIES ABOUT RETIREMENT INCREASING

RETIREMENT PLANNING GAPS

Inadequate planning for income management

Figure 16: Positive responses to “I am very good at managing money”, by age, January-September 2005

Lack of asset allocation strategy

Need for withdrawal strategies

Figure 17: Positive responses to “I enjoy taking risks”, by age, January-September 2005

Figure 18: Positive responses to “Investing in the stock market is too risky”, by age, January-September 2005

Planning gaps among pre-retirees

Figure 19: Positive responses to “I know nothing about finances/investments”, by age, January-September 2005

Figure 20: Positive responses to “I want to know as much as possible before committing to financial products”, by age, January-September 2005

Figure 21: Positive responses to “I shop for the best deal for financial services products”, by age, January September 2005

Figure 22: Positive responses to “I leave financial arrangements to someone else”, by age, January-September 2005

Figure 23: Positive responses to “I find ads for financial services interesting”, by age, January-September 2005

FINANCIAL ATTITUDES WITHIN ETHNIC GROUPS

People feel responsible for their own success

Ethnic influence on retirement attitudes

Attitudes among African-Americans, Asians and Hispanics

Figure 24: Positive responses to “I don’t like the idea of being in debt”, by age, January-September 2005

Asian-Americans and financial attitudes—a closer look

African-Americans and financial attitudes—a closer look

Hispanics and financial attitudes—a closer look

Figure 25: Attitudes of English-dominant vs Spanish-dominant Hispanic Baby Boomers, 2006

Financial attitudes of women

Sexual preference and retirement attitudes

Legacy planning among the generations

Influence of the “alpha” child

FINANCIAL BEHAVIORS

Baby Boomers’ financial responsibilities

Savings habits of affluent Baby Boomers

Sources of retirement income

DEBT ACTIVITY

Figure 26: Positive responses to “Often prefer to pay cash for things I buy”, by age, January-September 2005

Credit card ownership

Figure 27: Positive responses to “credit cards—do you have or use?”, by age, January-September 2005

Figure 28: Positive responses to “Have a debit card (MasterCard or Visa)”, by age, January-September 2005

Figure 29: Respondents who have three of more credit cards, by age, January-September 2005

Credit card usage

Figure 30: Positive responses to “Any credit cards used in the last 30 days”, by age, January-September 2005

Debit card usage

Figure 31: Positive responses to “Used MasterCard debit card 20 or more times per month”, by age, January September 2005

Figure 32: Positive responses to “Used MasterCard debit card between one and five times per month”, by age January-September 2005

Figure 33: Positive responses to “Used Visa debit card between one and five times per month”, by age, January September 2005

Figure 34: Proportion of monthly bill paid—Visa, MasterCard, Discover, Amex, by age, January-September

WHERE ASSETS ARE HELD

Figure 35: Have a retirement account, by gender and age, March 2006

Figure 36: Type of institution with retirement assets, age 55+, March 2006

Figure 37: Have a non-retirement account, by age, January-September 2005

Figure 38: Type of brokerage account held, by age, January-September 2005

Figure 39: Online account usage, by age, January-September 2005

Figure 40: Have mutual fund/brokerage accounts, by age, January-September 2005

Figure 41: Respondents who own any investments, type of investment owned, by age January-September 2005

Figure 42: Positive responses to “Own Keogh/SEP IRA/pension”, by age, January-September 2005

Figure 43: Positive responses to “own IRA” and “own 401k”, by age, January-September 2005

Figure 44: Financial transactions with credit unions, by age, January-September 2005

Figure 45: Senior Citizens Club participation, by age, January-September 2005

Figure 46: Relationship with mutual fund/brokerage firm, by age, January-September 2005

ROLLOVER TRENDS

Figure 47: Original and new providers, asset-weighted share of transactions, 2004

REASONS FOR ROLLING OVER ASSETS TO SPECIFIC INSTITUTIONS

Importance of an established relationship

Figure 48: Importance of an established relationship and online banking for rollover respondents, March 2006

Easy access through electronic services

Preferred investment menu

Figure 49: Importance of investment type and investment return to rollover respondents, March 2006

Returns on investments

Money management philosophy

Figure 50: Importance of conservative approach, consolidation of assets, and personal recommendation to rollover respondents, March 2006

Good place to consolidate

Influence of friends

Primary sources of financial information

Figure 51: Primary advisors as source of financial information, March 2006

Technology facilitating rollovers

PRODUCTS WHICH ADDRESS THE NEW “RETIREMENTALITY”

Reverse mortgages as a new retirement planning tool

Figure 52: Reverse mortgages issued, 2001-Q3 2005

Solo 401(k)s

RETIREMENT INCOME PRODUCTS AND SERVICES

Acceptance of electronic services

Figure 53: Positive responses to “Use a debit card and electronic funds transfer”, by age January-September 2005

Income planning services

Obtaining advice

Retirement plan advice through the workplace

Trust of financial companies

APPENDIX A: ADVERTISING

ATTITUDES ABOUT ADVERTISING

ADVERTISING TO SENIORS ONLINE

African-Americans and the Internet

Hispanics and the Internet

ADVERTISING APPROACHES

Fidelity

Figure 54: Fidelity print advertisement, 2006

Figure 55: Fidelity print advertisement, 2006

Figure 56: Fidelity print advertisement, 2006

Ameriprise

Figure 57: Ameriprise print advertisement, 2006

AIG

Figure 58: AIG print advertisement, 2006

Prudential

Figure 59: Prudential print advertisement, 2006

Figure 60: Prudential print advertisement, 2006

Figure 61: Prudential print advertisement, 2006

Figure 62: Prudential print advertisement, 2006

The Principal

Figure 63: Principal Financial Group print advertisement, 2006

Figure 64: Principal Financial Group print advertisement, 2006

Transamerica

Figure 65: Transamerica print advertisement, 2006

Vanguard

Figure 66: Vanguard print advertisement, 2006

Figure 67: Vanguard print advertisement, 2006

T Rowe Price

Figure 68: T Rowe Price print advertisement, 2006

Figure 69: T Rowe Price print advertisement, 2006

AG Edwards

Figure 70: AG Edwards print advertisement, 2006

Edward Jones

Figure 71: Edward Jones print advertisement, 2006

Figure 72: Edward Jones print advertisement, 2006

American Century

Figure 73: American Century print advertisement, 2006

Figure 74: American Century print advertisement, 2006

Lincoln Financial Group

Figure 75: Lincoln Financial Group print advertisement, 2006

New York Life

Figure 76: New York Life print advertisement, 2006

APPENDIX B: OTHER RELEVANT STUDIES

Abstract

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