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T. Rowe Price: Understanding Investor Attitudes Toward Retirement

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A new T. Rowe Price study revealed that nearly half (47%) of baby boomers and Gen Xers believe their ideal retirement is very attainable and another 45% believe it is somewhat attainable. The study included a national sample of 2,000 individuals age 36 or older who are either retired or who have taken initial steps to prepare for retirement.

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T. Rowe Price: Understanding Investor Attitudes Toward Retirement

  1. 1. T. ROWE PRICE STUDY: UNDERSTANDING INVESTOR ATTITUDES TOWARD RETIREMENT February 2017 2017-US-30472
  2. 2. 22 Table Of Contents  METHODOLOGY  RETIREMENT EXPECTATIONS  THE GENDER GAP  THE LONGEVITY BONUS  FINANCIAL ATTITUDES AND HABITS
  3. 3. 33 WHAT Methodology  Quantitative study conducted using SONAR™ – J. Walter Thompson’s proprietary online research tool WHO  Sample Size = 2,001  Country: USA  Demographics: - Gen X & Boomers (men and women age 36+) - Household Income $75k+ (among those still working) - Have investable assets (e.g. stocks, bonds, mutual funds, annuities, ETFs etc.) other than a 401(k) - Total Investable Assets (including 401k) worth $50k+ - Cap of 25% who are retired - Min of 20% age 60-64  Overarching Criteria: - Are either currently retired or have taken some steps (financial or logistical) to prepare for retirement WHEN • December 15th – December 21st 2016
  4. 4. RETIREMENT EXPECTATIONS
  5. 5. 55 RETIREMENT ATTAINABILITY Thinking about your “ideal retirement”, how attainable or unattainable do you feel this is? 92% feel their ideal retirement is attainable Base: Total Respondents (N=2,001)
  6. 6. 66 RETIREMENT EXPECTATIONS Which ONE of the following phrases best describes what you expect your [retirement/IF RETIRED: future retirement] years to be? 53% planning a more active retirement Base: Total Respondents (N=2,001)
  7. 7. 77 RETIREMENT GOALS Although you may have already mentioned some of these, which of the following would you consider to be an “ideal retirement”? 71% 59% 58% 50% 50% 47% 45% 41% 37% 33% 24% 23% 22% 21% 21% 21% 19% 14% 14% 13% 11% 11% 10% 10% 8% 5% 4% 3% 2% 74% 49% 40% 50% 54% 50% 53% 40% 42% 39% 37% 48% 38% 19% 26% 27% 30% 23% 30% 21% 22% 21% 10% 21% 15% 16% 6% 7% 11% 0% 50% 100% Traveling to places I’ve never been Having the means and money to indulge and enjoy life Just relaxing more Taking part in more leisure activities (e.g. golf, reading, biking, crafts, etc.) Spending more time with family Spending more quality time with my spouse/partner Getting healthier/more fit Enjoying the fruits of my labor Spending more quality time with my friends Taking part in more cultural events (e.g. music concerts, theater, sports events, museums, etc.) Meeting new people/making new friends Learning new skills/hobbies Becoming more involved in the local community/volunteering Accumulating enough wealth so that I can guarantee my children and grandchildren will live comfortably Downsizing or buying a smaller home Relocating to a different state or town Getting back to nature Getting more spiritually or religiously involved Doing more bold, adventurous, or courageous things Keeping up with technological advancements Becoming more philanthropic Living in a more environmental/sustainable way Investing in an additional house or apartment Reinvigorating my life with an old passion Living in a different country Teaching Focusing on dating/finding a partner Starting my own business Going back to school Relaxers/ Indulgers Personal reinventors/new experiencers Base: Relaxers/Indulgers (N=760) Personal Reinventors/NewExperiencers (N=685)
  8. 8. 88 RETIREMENT ATTITUDES To what extent do you agree or disagree with each of the following statements? Please use the scale below where a "5" means you "Strongly agree"and a "1" means you "Strongly disagree” (Top2 Box %) 64% 70% 71% 73% 70% 81% 76% 78% 0% 20% 40% 60% 80% 100% To me, personal accomplishment is more important than personal wealth As we age, we reinvent ourselves, we don’t just “get older” It is important to me that I always stay and feel relevant I feel connectedto people of all ages, not just those who are my “generation” Relaxers/ Indulgers Personal reinventors/new experiencers Base: Relaxers/Indulgers (N= 760) Personal Reinventors/NewExperiencers (N=685)
  9. 9. 99 TYPE OF RETIREE Thinking about the items that you just selected, please rank the top traits that represent the type of person you would like to be during retirement. (Ranked in Top 3) 38% 36% 28% 25% 22% 15% 14% 14% 12% 12% 8% 6% 6% 30% 33% 25% 31% 29% 19% 7% 8% 11% 19% 24% 10% 12% 0% 10% 20% 30% 40% 50% Lives in the moment and enjoys every minute Is more of a "family person” and has a big presence in the life of their family Is seen as independent and confident Is not held back by preconceived notions of age Leaves the world a better place Is giving everything their personal best Is viewed as a success Has a rhythm and routine to each day Is more of a “people person” with a focus on newfriends and relationships Is passionate about volunteering/giving back Reinvents their life with a renewed enthusiasm for what the future holds Takes risks and is adventurous Is fulfilling untapped talents and unrealized dreams Relaxers/ Indulgers Personal reinventors/new experiencers Base: Relaxers/Indulgers (N= 760) Personal Reinventors/NewExperiencers (N=685)
  10. 10. 1010 FINANCE AS A BARRIER You indicated that you did not feel your “ideal” retirement is likely to be very attainable. To what extent do you attribute this to money or finances? (among those who do not feel ideal retirement is “very attainable”) Base: Those Who Say Ideal Retirement Is Not “Very Attainable” (N= 1,056)
  11. 11. 1111 OTHER BARRIERS Other than money, which of the following are reasons for not being able to attain your ideal goals? (IF RETIRED) Thinking about your future retirement years, other than money, which of the following are reasons for not being able to attain your ideal goals? Base: Those Who Say Money Not The “Only” Reason For Not Being Able To Attain Retirement (N= 956)
  12. 12. THE GENDER GAP
  13. 13. 1313 GENERAL ATTITUDES TOWARD FINANCE Which ONE of the following phrases best describes what you expect your [retirement/IF RETIRED: future retirement] years to be? Base: Men (N=1,097), Women (N=904)
  14. 14. 1414 RETIREMENT GOALS Although you may have already mentioned some of these, which of the following would you consider to be an “ideal retirement”? 64% 51% 46% 46% 45% 44% 44% 40% 32% 30% 28% 26% 23% 23% 22% 21% 21% 18% 18% 16% 15% 13% 12% 12% 11% 8% 5% 5% 5% 76% 56% 51% 53% 49% 53% 57% 38% 46% 41% 38% 33% 30% 24% 19% 24% 24% 19% 15% 20% 15% 17% 15% 7% 10% 11% 4% 6% 4% 0% 50% 100% Traveling to places I’ve never been Having the means and money to indulge and enjoy life Just relaxing more Taking part in more leisure activities (e.g. golf, reading, biking, crafts, etc.) Spending more quality time with my spouse/partner Getting healthier/more fit Spending more time with family Enjoying the fruits of my labor Spending more quality time with my friends Taking part in more cultural events (e.g. music concerts, theater, sports events, museums, etc.) Learning new skills/hobbies Meeting new people/making new friends Becoming more involved in the local community/volunteering Relocating to a different state or town Accumulating enough wealth so that I can guarantee my children and grandchildren will live comfortably Getting back to nature Downsizing or buying a smaller home Doing more bold, adventurous, or courageous things Keeping up with technological advancements Getting more spiritually or religiously involved Becoming more philanthropic Living in a more environmental/sustainable way Reinvigorating my life with an old passion Teaching Living in a different country Investing in an additional house or apartment Starting my own business Going back to school Focusing on dating/finding a partner Men Women Base: Men (N=1,097), Women (N=904)
  15. 15. 1515 RETIREMENT ATTAINABILITY Thinking about your “ideal retirement”, how attainable or unattainable do you feel this is? Base: Men (N=1,097), Women (N=904)
  16. 16. THE LONGEVITY BONUS
  17. 17. 1717 LONGEVITY BONUS: Blessing Or Curse? Do you consider the idea that we could have an additional 30 years added to be more of a blessing or a curse? Base: Gen X (N=549), Baby Boomers (N=1,452) THE LONGEVITY BONUS:In the news, therehave been reportsfrom economists, professors, and other theorists talking about“the longevity bonus”, or the idea that we could have an extra 30 years added to our lifespan.
  18. 18. 1818 LONGEVITY BONUS: Emotions And how do you feel about this idea that we could have an additional 30 years added to our lifespan? Base: Total Respondents (N=2,001)
  19. 19. 1919 LONGEVITY BONUS: Impact Would this information (that we could have an additional 30 years) impact how you plan and save for retirement? (% Yes) Base: Gen X (N=549), Baby Boomers (N=1,452)
  20. 20. 2020 LONGEVITY BONUS: Impact In what ways do you feel this “additional30 years” would impact how you plan to spend your retirement years? (among those who said “yes”) Base: Total (N=2,001), Gen X(N=549), Baby Boomers (N=1,452)
  21. 21. FINANCIAL ATTITUDES AND HABITS
  22. 22. 2222 GENERAL ATTITUDES TOWARD FINANCE How much do you agree or disagree with each of the following statements about finance in general? (Top 2 Box %, 5 point scale) Base: Age 36-49 (N=549), Age 50-59 (N=707), Age 60-64 (N=477), Age 65+ (N=268)
  23. 23. 2323 GENERAL ATTITUDES TOWARD FINANCE How much do you agree or disagree with each of the following statements about finance in general? (Top 2 Box %, 5 point scale) Base: Age 36-49 (N=549), Age 50-59 (N=707), Age 60-64 (N=477), Age 65+ (N=268)
  24. 24. 2424 FINANCIAL RETIREMENT PREPARATION Do you feel that you should be doing more to financially prepare for your retirement years? Base: Gen X (N=549), Baby Boomers (N=1,452)
  25. 25. 2525 RETIREMENT INVESTMENT BARRIERS What is holding you back from doing more? (among those who feel they could be doing more) Base: Total Respondents (N=2,001)
  26. 26. 2626 RETIREMENT PREPARATION And which of the following steps have you already taken [IF RETIRED: did you take] to prepare for retirement? Base: Total Respondents (N=2,001)

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