don't you (forget about means)

DON’T YOU (FORGET ABOUT MEANS)Third Biennial Study on the Retirement Readiness of Generation X

MARCH 2016

2 DON’T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X

ABOUT THE INSURED RETIREMENT INSTITUTE

The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of more than 30 organizations, and is the only

association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial

professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education, and advocates for the sustainable retirement solutions Americans need to help

achieve a secure and dignified retirement. Learn more at www.irionline.org.

©2016 IRI

All rights reserved. No part of this report may be reprinted or reproduced in any form or used for any purpose other than educational without the express written consent of IRI.

3

(DON’T YOU) FORGET ABOUT MEANSThird Biennial Study on the Retirement Readiness of Generation X

OverviewGeneration X, resilient latchkey kids born into the dawning of the personal technology era, likely never considered their twilight years while watching John Hughes films like “The Breakfast Club” and yearning for independence. Yet here they are, the oldest GenXers rapidly approaching the end of their working years, and the youngest hitting their prime earning years. Unfortunately these GenXers are in many ways unprepared for, and unrealistic about, the transition to retirement. Replacing earned income with Social Security, pensions (for the few who have them), and income from personal savings and retirement assets is as independent as it gets, and this generation needs much education and guidance to achieve success.

“Thriller”-s – Key Observations ● Economic satisfaction among GenXers has dropped over the past five years, with six in 10

GenXers reporting feeling satisfied from an economic standpoint, as compared to more than eight in 10 in 2011.

● Half of GenXers think saving enough for retirement is their top financial concern. ● Only 8 percent of GenXers have $250,000 or more saved for retirement. A 53 year-old purchasing

a deferred income annuity today would need $250,000 to produce $30,000 of annual retirement income, the amount needed to fill the gap between current average annual retiree expenditures and the average Social Security benefit.

● 64 percent of GenXers have money saved for retirement, the same as in 2013 but down from 72 percent in 2011. Of those with retirement savings, 77 percent have added to retirement savings in the past 12 months, equivalent to prior years.

● 73 percent of GenXers with retirement savings have less than $150,000 saved for retirement, as compared to 77 percent in 2013 and 76 percent in 2011. This is associated with a shift into higher savings levels among those with retirement savings, as 14 percent of GenXers have between $150,000 and $250,000 saved for retirement, up from 9 percent in 2011.

● 58 percent have two or more retirement accounts. ● Four in 10 GenXers rebalance their retirement accounts at least annually, up from less than one-

third in 2013. ● 58 percent of GenXers believe they will retire at age 65 or later, compared to 51 percent in 2013

and 42 percent in 2011. This shift is primarily driven by greater certainty in retirement timing, with 16 percent of GenXers being unsure when they will retire, versus 25 percent in 2013 and 28 percent in 2011.

● Defined contribution plans and Social Security are the top sources of income GenXers expect to tap in retirement, consistent with prior study years


● Increasing taxes and reducing or eliminating tax-deferred savings would have a negative impact on GenXers savings:

» Reduction/elimination of tax deferral: 25 percent less likely to save » Increase in Social Security payroll tax: 30 percent less likely to save » Increase in income tax: 44 percent less likely to save

● Nearly eight in 10 GenXers consider tax deferral an important aspect of a retirement investment, consistent with prior study years.

● 58 percent of GenXers have not tried to calculate what they need to have saved by the time they retire. Of those who have, 34 percent did not factor in health care expenses. Among those who did not include health care expenses, the top reason was not knowing how to calculate them.

● 41 percent of GenXers believe health care expenses will consume 20 percent or less of their retirement savings, yet research suggests that health care represents a third of expenses for those aged 60 and older.

● 67 percent of GenXers believe it is important to leave an inheritance to loved ones, yet only 24 percent are highly confident they will have enough money to support themselves throughout retirement.

● 71 percent have not consulted a financial professional. Of those who have, 81 percent have discussed retirement with their advisor and 71 percent have had their advisor develop a retirement plan.

● GenXers who work with financial professionals are twice as likely as those who plan on their own to have at least $100,000 saved for retirement.

● If money runs out in retirement, 65 percent of GenXers plan to return to work if able, and 60 percent plan to downsize to rely solely on Social Security for retirement income.

“Walk of Life” – GenXers’ Views on the Economy, FinancesAn important backdrop to retirement preparedness is the level of overall satisfaction Americans have with their lives, specifically from an economic standpoint. This helps inform other areas of demographic retirement research, as the level to which consumers are prepared for the future will impact how they feel about their economic well-being. In 2015, members of Generation X reported lower levels of economic satisfaction than in 2011. This downward trend in economic satisfaction was also observed in IRI’s research on Baby Boomers.

It may seem odd to see economic satisfaction dropping over a period of significantly rising equity market values and retirement plan balances. During this time, the average 401(k) balance rose from $69,100 in 2011 to $91,300 in 2015.1 However, recent research also finds that 65 percent of

Boomers Gen X

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2011 2015

76%83%

48%

64%

Economic Satisfaction

5DON’T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X

Americans’ wealth is held in cash, therefore many GenXers may have only partially participated in rising markets, and perhaps some not at all.2 The drop in satisfaction also may be driven both by immediate financial concerns, as well as concerns about the future. A third of GenXers are finding it more difficult to pay their mortgages or rent, and this increases to over 40 percent among younger GenXers. Both older and younger GenXers are nearly equally concerned about other financial matters, with half concerned about their ability to save enough to retire when, where and how they want, and about four in 10 worried about retirement expenses. One in three GenXers also are concerned about paying off personal debt and losing full-time employment. Despite these concerns, only one in 10 prematurely withdrew funds from an IRA or 401(k), and one in four actually increased their retirement plan contributions. Fewer than one in five stopped contributing to a retirement plan, down from about one in four in 2011.

Age 34–43All Ages

Postponed plans to retire

Increased contributions to 401(k), IRA, etc.

Stopped contributing to 401(k), IRA, etc.

Prematurely withdrewfunds from 401(k), IRA, etc.

Found it more difficult to paymortgage or rent

0% 5% 10% 15% 20% 25% 30% 35% 40%

35%37%

13%15%

18%16%

23%28%

18%15%

Age 44–53

34%

11%

19%

19%

20%

Financial Changes in the Past Twelve Months

Age 34–43All Ages

Loss of full-time employment

Paying off other debt

Basic living expenses

Significant medical expenses

Saving enough to retire when,where, and how desired

0% 10% 20% 30% 40% 50% 60%

Age 44–53

50%50%50%

40%40%40%

36%38%

37%

32%37%

34%

34%34%34%

Pre-Retirement Financial Concerns


While it is encouraging to see GenXers increasing their retirement plan contributions, sustaining or accelerating this trend requires that tax policies supporting retirement savings remain unchanged or expand. GenXers report that they would be less likely to save for retirement if taxes are increased or if tax incentives for retirement savings are reduced or eliminated – 25 percent would be less likely to save if tax-deferred retirement savings were reduced or eliminated, 30 percent would be less likely to save if Social Security payroll taxes were increased, and 44 percent would be less likely to save if income taxes were increased. Not surprisingly then, nearly eight in 10 GenXers consider tax deferral an important aspect of a retirement investment.

“Sweet Child O’ Mine” – Legacy Goals of GenXersTwo-thirds of GenXers believe it is important to leave a legacy to their heirs. This may be difficult for many GenXers, as they have not yet saved enough to meet their own income needs, much less leave a significant estate. In 2013, the average retiree aged 65-74 had annual expenses of $46,757,3 about $30,000 more than the current average annual Social Security benefit of $16,092.4 To fill this “income

0% 5% 10% 15% 20% 25% 30% 35%

Reduction or elimination oftax incentives

Increase in Social Securitypayroll tax

Increase in income taxes

25%

30%

44%

40% 45% 50%

Less likely to save

Impact of Governmental Changes on Desire/Ability to Save for Retirement

Age 34–43All Ages

Don’t know

Not at all important

Not very important

Somewhat important

Very important

0% 5% 10% 15% 20% 25% 30% 35% 40%

33%31%

44%46%

9%7%

11%13%

Age 44–53

35%

42%

11%

3%

9%

45% 50%

3%3%

Importance of Tax Deferral as a Retirement Investment Trait


gap,” and assuming a similar gap exists when the oldest GenXers begin to retire, a deferred income annuity paying about $30,000 per year in retirement (at age 65) would cost a 53-year-old GenXer $250,000 today.5 Yet only eight percent of GenXers have at least $250,000 saved for retirement, and even among GenXers closest to retirement, those ages 44-53, only 11 percent have saved this much.

“The Time of My Life” – Planned Retirement Age of GenXersGenXers do sense that they will likely need to work longer, if they can, and retire later. More than half of

Age 34–43All Ages

Don’t know

Not at all important

Not very important

Somewhat important

Very important

0% 5% 10% 15% 20% 25% 30% 35% 40%

29%34%

38%39%

18%15%

Age 44–53

24%

37%

20%

16%

4%

45%

9%12%

4%3%

Importance of Leaving an Inheritance

20132011

Undecided

Before age 65

0% 10% 20% 30% 40% 50% 60% 70%

42%51%

30%24%

28%25%

2015

58%

26%

16%

65 or older

Planned Age to Stop Working Full-Time

Average Social Security Benefit $16,092

Average Annual Retiree Expenditures $46,757

Income Gap ($30,665)

Annual Lifetime Income at Age 65 from $250,000 Deferred Income Annuity Purchased at Age 53

$30,768


GenXers, 58 percent, believe they will retire at age 65 or later. This includes 24 percent who plan to keep working to at least 70, and is a significant increase from the 42 percent who believed they would retire at age 65 or older in 2011. Only 26 percent of GenXers believe they will retire prior to age 65, fewer than in 2011. The growth in those planning retirement at age 65 and up mostly represents a shift from the undecided category, indicating that GenXers are gaining clarity on retirement timing as they age.

“Promises, Promises” – Retirement Income Sources for GenXersAs in prior years, defined contribution plan assets and Social Security are most often cited as the main sources of income in retirement for GenXers, with younger GenXers more likely to view the 401(k) as a major source, and less likely to think about Social Security as a cornerstone of their retirement. Less than a quarter of GenXers expect a traditional employer-provided defined benefit pension to provide income in retirement.

“Livin’ on a Prayer” – Confidence in Reaching a Secure RetirementOverall GenXers are not terribly confident about retirement. Less than a quarter believe they will have enough money to live comfortably in retirement, that they are doing a good job preparing for retirement, or that they will have enough money for expenses such as health care, long-term care, and their children’s college tuition.

Age 34–43All Ages

Sale or refinancing of a home

Non-IRA investments(CDs, mutual funds, etc.)

Employment in retirement

IRA

Traditional employer pension

0% 10% 20% 30% 40% 50% 60%

Age 44–53

24%24%24%

26%

24%

21%

19%

10%10%

11%

Personal savings

Social Security

Employer savings plan, e.g. 401(k)41%

49%45%

38%27%

32%

23%29%

19%19%

19%

21%

24%

26%

Major Expected Sources of Income in Retirement


The major concerns GenXers expect to have in their sunset years are changes to Social Security, medical expenses, and exhausting their financial resources.

Age 34–43All Ages

Will have enough money for highereducation expenses for children

Will have enough money forlong-term care expenses for parents

Will have enough money for long-termcare expenses during retirement

Will have enough money formedical expenses during retirement

Doing/did a good job preparingfinancially for retirement

0% 5% 10% 15% 20% 25% 30%

Age 44–53

22%27%

24%

27%

18%

20%

19%

23%24%

23%

Will have enough money tolive comfortably in retirement 22%

27%

19%19%

22%

21%

24%

24%

Confidence in Retirement Preparations

Age 34–43All Ages

Victimized by scams or elder abuse

Realizing significant investment losses

Paying rent

Suffering a cognitive decline

Relying on family/friends for financial help

0% 10% 20% 30% 40% 50% 60%

Age 44–53

32%39%

35%

32%

27%

29%

23%

22%24%

23%

Money for food and basic needs

Above average inflation

Exhausting financial resources47%

42%45%

40%

38%37%

25%24%

31%

31%

31%

38%

Medical expenses

Changes to Social Security53%

47%50%

48%

40%39%

47%48%

Expected Financial Concerns: Age 80 and Older


A commonly held belief across generations is the idea that one can simply return to work if retirement does not pan out as expected. However, working longer and relying on potential earned income is a risky strategy that requires both the availability of gainful employment and that one is healthy enough to pursue it. While it is admirable that two-thirds of GenXers profess to be willing to roll up their sleeves and go back to work if necessary, doing so requires both means and opportunity. Downsizing to live on Social Security, perhaps appealing in the abstract to six in 10 GenXers, is also problematic as certain needs, such as paying for the cost of health care, may make this rather difficult.

“I Still Haven’t Found What I’m Looking For” – GenXers with Retirement Savings GoalsGiven the concerns GenXers have about their finances in retirement, one might expect that many have determined how much they need to save to avoid the eventualities they fear. Sadly, this is not the case, as almost six in 10 have not yet tried to calculate how much they need to save to live comfortably in retirement.

Age 34–43All Ages

Other

Rely on children

Rely on family/friends

Seek assistance from churchor social services

Downsize to live onSocial Security

0% 10% 20% 30% 40% 50% 60%

Age 44–53

61%58%

60%

24%

11%

12%

9%

4%3%

4%

Return to work if able65%

64%

9%9%

14%

22%

23%

65%

70%

Dealing With Exhausting Financial Resources in Retirement


Encouragingly, among those GenXers who have attempted to figure out how much they need to have saved, six in 10 have included health care costs in the calculation.

However, they miss the mark in terms of estimating how much health care might cost them during retirement. From age 60 on, retirees can expect health care to comprise approximately 33 percent of expenses.6 About four in 10 GenXers believe that health care will consume less than 20 percent of their income, with fewer than one in five estimating a more realistic 31 to 40 percent.

NoYes

Age 44–53

Age 34–43

All ages

0% 10% 20% 30% 40% 50% 60%

58%42%

56%44%

59%41%

Have Calculated Amount Needed to Retire

NoYes

Age 44–53

Age 34–43

All ages

0% 10% 20% 30% 40% 50% 60%

Don’t know

5%34%

61%

5%33%

62%

6%35%

59%

70%

Retirement Calculation Includes Health Care Costs


Of GenXers who did not include health care costs in their estimated retirement savings calculations, by far the most common reason cited is lack of ability, with as many as six in 10 stating they are unsure what the costs will be or do not know how to calculate them. This is an area where financial professionals can add considerable value by educating clients about what this component of their expected retirement expenditures means for retirement savings and planning, and helping prompt GenXers to both save more and look at retirement income products that could help prepare them to manage these expenses. For example, variable annuities with lifetime income, which often embed guaranteed growth, or deeply discounted deferred income annuities that can be purchased relatively inexpensively years prior to retirement.

Age 34–43All Ages

Don’t know

Health care is not a priority

Advisor has not discussed

Included in generalfinancial management

Planning to rely on theAffordable Care Act

0% 10% 20% 30% 40% 50% 60%

Age 44–53

8%6%

7%

13%

4%

5%

8%

9%2%

6%

Planning to rely onemployer coverage 18%

14%

11%9%

5%

4%

8%

16%

70%

Planning to rely on Medicare32%

19%26%

Unsure of costs/don’tknow how to calculate 57%

60%62%

Reasons for Omitting Health Care Costs from Retirement Calculations

21% to 30%20% or less

Age 44–53

Age 34–43

All ages

0% 5% 10% 15% 20% 25% 30% 35% 40%

41%29%

44%30%

31% to 40%

17%

18%

11%

45% 50%

29%37%

More than 40%

13%

16%

15%

Expectations of Health Care Costs as a Percentage of Retirement Income


The Cure – GenXer Retirement SavingsOn a more encouraging note, 65 percent of GenXers have money saved for retirement. This is comparable to, albeit slightly lower than, the seven in 10 working Baby Boomers with money saved for retirement.7

Unfortunately, while GenXers are saving for retirement, they have not saved much. More than half have saved less than $100,000, while only one in 10 have saved $250,000 or more. The fact that most of them are saving, however, is reflected positively in the distribution of savings across age groups, with the oldest GenXers being the most likely to have saved over $100,000 or over $250,000. Continued diligence in contributing to retirement accounts over the next 12 to 31 years will help GenXers become better prepared, and financial professionals can help encourage these contributions by showing how late savers can still be great savers, even at modest income levels. For example, a 50-year-old saver making $75,000 per year can, through continued saving and catch-up contributions, add more than $200,000 to a retirement portolfio.8

NoYes

Age 44–53

Age 34–43

All ages

0% 10% 20% 30% 40% 50% 60%

35%65%

34%66%

36%64%

70%

Have Money Saved for Retirement

Age 34–43All Ages

Don’t know

$250,000 or more

Between $100,000 and $250,000

Less than $100,000

0% 10% 20% 30% 40% 50% 60%

Age 44–53

63%

26%

26%

17%

7%5%

6%

7%12%

25%

50%

56%

70%

Amount Saved for Retirement


However, there has been a slight shift toward higher savings, with 14 percent of GenXers having saved between $150,000 and $250,000 versus 9 percent in 2011.

GenXers of all ages are mostly attending to their retirement savings, with more than eight in 10 of the youngest having made contributions in the past year. As noted earlier, what many lack is a plan. By helping GenXers establish target retirement savings amounts as part of a comprehensive plan, financial professionals can improve outcomes.

The household incomes of survey respondents reinforce the need for financial professionals to work with GenXers to establish savings goals and develop sound savings habits. Given the concerns expressed by GenXers with regard to current financial issues, it may be difficult for many to set more money aside for retirement absent a comprehensive plan to help manage all aspects of their financial lives.

20132011

$250k or more

Between $150k and $250k

Less than $150k

0% 10% 20% 30% 40% 50% 60% 70% 80%

76%77%

2015

73%

14%

13%

90%

10%9%

15%13%


NoYes

Age 44–53

Age 34–43

All ages

0% 10% 20% 30% 40% 50% 60% 70% 80%

77%20%

Don’t know

3%

1%

4%

90%

18%81%

74%22%

Contributed to Retirement Savings in Past 12 Months


About six in 10 GenXers have at least two different retirement accounts, and about one in five have three or more. Financial professionals can help individuals consolidate these accounts, manage asset allocation across accounts, and ultimately guide GenX retirees in the efficient conversion of assets into retirement income. As GenXers age and change jobs and/or careers, they will likely accumulate more accounts, as evidenced by the oldest GenXers currently being more likely to have two accounts than one, versus the youngest members of the cohort who are more likely to have only one account.

Age 34–43All ages

Prefer not to answer

$100,000 or more

0% 10% 20% 30% 40% 50% 60% 70%

16%18%

19%17%

2%

Age 44–53

14%

19%

3%

Between $75,000 and $100,000

64%63%

64%Less than $75,000

2%

Household Income

Age 34–43All Ages

Not sure

Three or more

Two

One

None

0% 5% 10% 15% 20% 25% 30% 35% 40%

5%5%

34%37%

35%35%

Age 44–53

5%

31%

36%

24%

4%

20%22%

4%3%

Number of Retirement Accounts


“Always Something There to Remind Me” – GenXers Engagement with Retirement PlansIn an effort to measure how engaged they are with their retirement plans, this year’s study looks at how often, and how, GenXers check on and rebalance their retirement accounts. It turns out that more than half of GenXers responsibly monitor their retirement accounts through proactive and periodic online checkups. Printed statements are used by about a third, and about a quarter go online to check their accounts when prompted by an e-mail or text, in reaction to market news, and/or with their financial professional. Only 5 percent of GenXers are not monitoring their accounts.

GenXers are monitoring their accounts quite frequently, with six in 10 checking balances at least monthly, and fewer than one in five checking less often than quarterly.

Age 34–43All Ages

No monitoring

Online, prompted by social media

With Financial Advisor

Online, prompted by news

Online, prompted by e-mail/text

0% 10% 20% 30% 40% 50% 60%

Age 44–53

25%29%

27%

29%

22%

23%

6%4%

5%

Using printed statements

Periodic online checkups51%

54%52%

39%34%

11%7%

24%

18%

23%

36%

4%

Methods of Monitoring Retirement Accounts


Rebalancing of retirement accounts is an important step to ensure that asset allocations do not, over time, shift out of balance with goals and risk tolerances and expose individuals to excessive risk via overconcentration in a single asset class. GenXers fall a bit short on this measure, with fewer than four in 10 rebalancing at least annually, and about half only rebalancing every few years or rarely. However, this is improved from 2013, when less than a third rebalanced at least annually and more than half every few years or rarely.

QuarterlyAt least monthly

Age 44–53

Age 34–43

0% 10% 20% 30% 40% 50% 60% 70%

61%22%

64%21%

59%23%

Less than quarterly

17%

15%

18%

All ages

Frequency of Checking Retirement Account Balance

20152013

Don’t know

Never

Rarely

Once every few years

At least annually

0% 5% 10% 15% 20% 25% 30% 35% 40%

29%38%

17%18%

35%30%

12%15%

4%3%

Frequency of Retirement Account Rebalancing


“Here I Go Again on My Own” – GenXers Seeking Help from Financial ProfessionalsMost GenXers invest without professional guidance. Eight in 10 GenXers are either “do it yourselfers” and/or invest through a retirement plan. Only one in five invest through a financial professional, far fewer than would benefit from the services financial professionals provide.

Unsurprisingly then, less than a third of GenXers say they have consulted with a financial professional. However, those that have are getting the help they need, with more than eight in 10 saying their financial advisor has discussed their plans for retirement. In fact, seven in 10 of the GenXers who have consulted with a financial professional have had a retirement plan prepared for them. Investing and general financial management are other strong areas of consultation, with 62 percent and 45 percent of GenXers using these services, respectively.

Age 34–43All Ages

Not sure

Do not invest at all

Through a brokeror advisor

Through aretirement plan

Directly, independently

0% 5% 10% 15% 20% 25% 30% 35% 40%

35%38%

45%47%

22%22%

Age 44–53

33%

42%

23%

29%

4%

24%27%

4%4%

45% 50%

Method of Investing


34–43All ages

Estate planning

Tax planning

Insurance coverage

0% 10% 20% 30% 40% 50% 60% 70% 80%

31%34%

43–53

28%

27%

22%

90%

27%27%

24%26%

General financial management

Investing

Retirement81%

80%83%

59%

46%

63%62%

45%45%

Planning Areas Discussed with Financial Professional

NoYes

Age 39–44

Age 34–38

All ages

0% 10% 20% 30% 40% 50% 60% 70% 80%

71%24%

Don’t know

5%

6%

3%

25%69%

73%24%

Financial Professional Prepared a Retirement Plan


Working with financial professionals is also highly correlated with increased savings, as those GenXers who have consulted with advisors are twice as likely to have at least $100,000 saved for retirement.

“Is There Something I Should Know?” – GenXer Financial IQGenXers do not feel that they have strong investing or financial knowledge, with about eight in 10 rating themselves only somewhat or not very knowledgeable about investing, and about two-thirds rating their financial knowledge as average or low.

Without Financial AdvisorWith Financial Advisor

Don’t know

$250,000 or more

0% 10% 20% 30% 40% 50% 60% 70%

34%19%

18%8%

7%

Between $100,000 and $250,000

43%66%Less than $100,000

5%


Age 34–43All Ages

Don’t know

Not very/not atall knowledgeable

Somewhatknowledgeable

Extremely/veryknowledgeable

0% 5% 10% 15% 20% 25% 30% 35% 40%

20%22%

37%37%

Age 44–53

18%

37%

43%

2%

39%41%

2%2%

45% 50%

Level of Investing Knowledge


“Back to the Future” – ConclusionIn a nutshell, Generation X needs more of almost everything: more savings, more planning, more guidance, and more knowledge about retirement, investing, and financial realities. It is a generation with expectations that may be misaligned with retirement income resources. The good news is that GenXers have two important things going for them: time and access to financial advice. Time in the form of additional years to increase contributions to retirement accounts; advice and help through engagement with financial professionals who can educate them about the challenges they’re likely to face in retirement, and how to best plan to meet those challenges.

MethodologyThe Insured Retirement Institute (IRI) commissioned Woelfel Research, Inc., to conduct a survey of individuals broadly defined as members of Generation X. The research was conducted by means of internet interviews with 805 Americans aged 34 to 53. Data were weighted by age and gender. Data was collected from December 28 through December 31, 2015. The margin of error for the sample of 805 was ± 3.5%.

References 1 Fidelity Investments, 2014 2 BlackRock Global Investor Pulse, 2015 3 Bureau of Labor Statistics Consumer Expenditure Survey, 2013 4 Social Security Administration 5 Annuity quote generated using www.immediateannuities.com 6 2014 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplemental Medical Insurance Trust Funds 7 “Boomer Expectations for Retirement 2015” – IRI, 2015 8 “Baby Boomers and Retirement Planning Strategy” – IRI, 2015

AverageHigh

Age 44–53

Age 34–43

0% 10% 20% 30% 40% 50% 60%

34%52%

34%54%

34%50%

Low

14%

12%

16%

All ages

Level of Financial Knowledge

Insured Retirement Institute202-469-3000 | 202-469-3030 (fax)[email protected] | myirionline.org

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