ing studies the economic outlook of todays government workforce public employees in focus ing digs...

ING studies the economic outlook of today’s government workforce

Public Employees In Focus

ING digs deep into the retirement and financial mind-set, opinions, confidence and habits of today’s government workers… who are these previously unstudied stakeholders, what do they think about the world around them, their financial situations, and how do they make decisions?

For plan sponsor use only.Not for distribution to the general public.

(c) 2010, ING North America Insurance Corporation.C10-0730-005 (08/10)

Retirement - Insurance - Investments 2

Behavioral Finance and retirement research traditionally focuses on large private sector employers, and their 401(k) plans.

State and Local Governments employ 8.3 million workers

(Bureau of Labor Statistics, 2008)

Data desert in understanding the motivations, opinions,

personalities, attitudes

Potential impact on retirement saving and situations

How do they interact with financial products, resources

and situations

Where do they focus their attention, what do they think

is important

How confident are they about their own situations

New Landmark Study from ING

Focuses specifically on State and Local government

workers

Government Workers

“Understanding how people think and feel,

about themselves, their situations, about money and finances, is

key to helping encourage, facilitate

and enable productive retirement savings

behavior.”Public Employees in Focus Report. © 2010

ING North America Insurance Corporation available at ingretirementresearch.com


1,026 State and Local Government Employees responded to the survey.

• Government Employees work for state or local government entities. This group excludes K-12 educators.

• Employees included in this study are employed full-time and between the ages of 20 and 70.

Quotas were set for Government Employees. Invitations were sent to a representative sample of full-time employees age 20-70. All responders to the survey invitation, regardless of their study qualification status, were weighted to be representative of full-time employees age 20-70. This resulted in a representative sample of those who actually qualified for the study and completed the interview.

The study was conducted 5/27/10 – 6/1/10. Results are reported at +/-3% at the 95% confidence level.

Survey conducted for the ING Institute for Retirement Research through Synnovate

© ING North America Insurance Corporation

Survey Methodology


Who are these employees?


What is their personality?What is their personality?

What do they think about America’s issues?


Who do they trust?Who do they trust?What do they buy and

how do they make purchase decisions?

What do they buy and how do they make

purchase decisions?

How do their financial habits compare to other

habits?


habits?

What does their retirement picture look

like?


like?

What are their financial confidence and

experience levels?


experience levels?

What are financial communication

expectations… employer role and preferred

method?



method?

State and Local Government Employees











purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?

AGE n=1,026

20-34 18%

35-50 41

51-70 41

Mean (years) 46.5

GENDER

% Male 46%

HOUSEHOLD INCOME

<$50k 38%

$50k - < 75k 27

$75k - < $100k 20

$100k - <$200k 14

$200k+ 1

Mean (000s) $71.4

Demographic Profile

Q.SA3. What is your age? [Numeric entry]Q.33. What is your gender? [Select one]Q.34. Which of the following ranges best describes your annual household income? [Select one]

The Government workforce is slightly more female than male, and the majority are 35 or older. Well over half have a household income less than $75k per year; a significant percentage less than $50k.

6Retirement - Insurance - Investments

MARITAL STATUS

Married/Domestic Partner 56%

Widowed/Divorced/Separated 24

Never Married 20

HOUSEHOLD SIZE

Mean 2.6

PRESENCE OF CHILDREN IN HOUSEHOLD

% Have Children <18 in HH 34%

UNION MEMBER n=1,026

% Yes 32%

Demographic Profile (cont’d)

Q.48/Sample data. Which of the following best describes your current marital status? [Select one]Q.45. Which best describes your race / ethnic origin? [Select one]Q.49/Sample data . What is your current household size? [Select one]Q.50/Sample data. Do you have children in your household? [Select all that apply]

On average, Government Employees live in 2+ person households, with approximately one-third having children under 18 in their household. More than half are married or have a domestic partner.


PENSION ELIGIBLE n=1,026

% Yes 71%

HAVE EMPLOYER-SPONSORED RETIREMENT PLAN n=1,026

% Yes 64%

CURRENTLY INVESTING IN ESRP (Base = Own ESRP) n=667

Yes 74%

No 16

Not Sure 10

ESRP BALANCE (Base = Investing in ESRP) n=496

<$50k 50%

$50k - < $100k 14

$100k+ 16

Not sure 20

Mean (000’s) $71.5

2009 ESRP CONTRIBUTION (Base = Investing in ESRP) n=496

Mean (000’s) $4.8

Financial Profile – Employer Related

Q.35. Will you be eligible for pension retirement income from your employer ? [Select one]Q.SA9. Which of the following financial products do you currently own? [Select one]Q.40. Are you currently investing in your employer’s defined contribution retirement plan? [Select one]Q.41. What is the approximate balance within your employer’s defined contribution retirement plan [Select one]Q.42.Approximately how much did you contribute to your employer’s defined contribution retirement plan in 2009? [Select one]

Most Government Employees state that they are pension-eligible. The majority also have an Employer-Sponsored Retirement Plan (ESRP).


FINANCALPRODUCT OWNERSHIP n=1,026

Own retail or ESRP investments 81%

Own employer-sponsored retirement plan 64

Own retail investments 51

Own checking/savings account 89

HAVE FORMAL, WRITTEN FINANCIAL PLAN

Yes 13%

No – but plan to create one 53

No – and I do not plan to create one 34

TOTAL HOUSEHOLD INVESTABLE ASSETS

<$10k 27%

$10k - < $50k 26

$50k - < $100k 15

$100k - <$250k 18

$250k+ 15

Mean (000’s) $140.4

Financial Profile – General

Q.SA9. Which of the following financial products do you currently own? [Select one]Q.13. Do you currently have a formal, written financial plan for managing your income and expenses during retirement? [Select one]Q.46. What would you estimate to be the total amount of your household’s investable assets? Please include money in checking, savings, employer sponsored retirement plans (such as 401(k), 403(b), 457) and investments (such as mutual funds, individual stocks and bonds, annuities, CDs, IRAs, etc.). [Select one]

Most do own retail or Employer Sponsored Retirement Savings Plan (ERSP)investments. Few have a formal, written financial plan – but more than half plan to create one. Just over half have investable assets of less than $50k.


TOTAL HOUSEHOLD RETIREMENT SAVINGS (Base = Own ESRP)

n=667

Nothing 7%

<$10k 25

$10k - < $50k 30

$50k - < $100k 13

$100k - < $250k 15

$250k+ 10

Mean (000’s) $106.9

PROPORTION OF HOUSEHOLD RETIREMENT SAVINGS IN ESRP (Base = Currently investing in ESRP)

n=496

Proportion in ESRP 67%

Financial Profile – General (cont’d)

Q.47. What would you estimate to be the total amount that your household has saved for retirement? Please include retirement savings including employer retirement savings plans (401(k), 403(b), 457), IRAs, annuities, and any other investments that you intend to use for retirement. [Select one]

The ERSP makes up approximately two-thirds of total household savings for those who do have investments.












purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?

Risk Taker Personality

Most Government employees would not classify themselves as risk takers in their personal lives. Correspondingly, “relater” is the most commonly self-assessed personality type.

Q.31. Would you [Select one you are a risk taker in your personal life? [Select one] Q.32. Which personality type would you say best describes you?

Risk Taker

Relater: Good team player, prefer stability to risk, cares greatly about the feelings and needs of others, likeable, not a risk-takerThinker: Self-controlled and considerate, prefer analysis to emotionSocializer: Outgoing, optimistic, enthusiastic, like to be in the center of things, loves to talkDirector: Firm, forceful, confident, competitive, decisive, determined, risk-taker

Relater Thinker Socializer Director


Risk Personality

It follows that very few consider themselves “aggressive” investors; fully half consider themselves “conservative”.

6%

44%50%

Aggressive Moderate Conservative

Aggressive – Willing to accept a high level of risk to possibly achieve high asset growthModerate – Willing to accept a moderate level of risk to possibly have moderate investment growthConservative – Want to protect savings and avoid any possible losses

Q.XX. Which of the following best describes your retirement investment philosophy?












purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?


Top 5 Issues Facing America Today

Government employees feel that employment and healthcare costs are the top issues facing America today. Retirement security is the next most important issue.

#2 ranking

#1 ranking

Cost of health-

care

Retire-ment

security

Employ-ment /

unemploy-ment

Education budgets

State/municipal budgets

Financial literacy

Global warming

Child-hood

obesity

Crime rates

Cost of higher

education

Future of Amer-

ican bus-inesses

Military efforts in Iraq and Afghan-

istan

Controlling drugs / the

war on drugs

Poverty

100% 99% 99% 99% 99% 99% 98% 98% 99% 87% 96% 97% 94% 95%% Think is an issue at

all

Q.1 In your opinion, what are the top five issues that America is facing today? [Rank top 5]Q.2 How optimistic or pessimistic are you that America will be able to address these issues effectively within the next 3 to 5 years? [Select one]

Think a #1 or #2Issue


America’s Ability to Address Issues Effectively in Next 3 – 5 Years*

These employees are generally not very optimistic about America’s ability to address most issues effectively within the next three to five years. Retirement security is one of the issues with the greatest pessimism.

Cost of health-

care

Retire-ment

security

Employ-ment /

unemploy-ment

Education budgets

State/municipal budgets

Financial literacy

Global warming

Child-hood

obesity

Crime rates

Cost of higher

education

Future of Amer-

ican bus-inesses

Military efforts in Iraq and Afghan-

istan

Controlling drugs / the

war on drugs

Poverty

36% 6% 1% 5% 19% 3% 5% 3% 5% 8% 2% 1% 3% 3%% Ranking issue #1

Pessimistic

Somewhat Optimistic

Very Optimistic

Q.1 In your opinion, what are the top five issues that America is facing today? [Rank top 5]Q.2 How optimistic or pessimistic are you that America will be able to address these issues effectively within the next 3 to 5 years? [Select one]

*Base: Respondents who consider it an issue

Optimistic


Financial Literacy as Part of School System

Although very few employees rank financial literacy in the top two issues facing America today, virtually all believe that financial literacy should be a part of education in the school system. More than half feel that it should be an important part.

Q.1 In your opinion, what are the top five issues that America is facing today? [Rank top 5]Q.3 Please read the following statements and select the one that best describes your feelings. [Select one]

Should be an important part of education taught to children in the school systemShould be a part of education taught to children in the school system, but does not need to be a priorityDoes not need to be included in education taught to children in the school system

95%

3% rank financial literacy in the top 2 issues facing America today












purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?

Trust of Others

Government employees’ trust of banks/financial services companies is quite low – higher than only their trust in car salespeople! They have more trust in their immediate supervisors than in their employers as entities / organizations.

Q.4 In matters that are relevant to your relationship, how much do you trust…?[Select one]Q.5 In general, how much do you trust… ?[Select one]

Spouse/ partner

Friends /co-

workers

ChildrenParents People who

help you at car

dealer-ships

Primary doctor

Insurance agent

Banks / Financial services

companies

Hairdresser / barber /

stylist

Dentist Financial advisor

Immediate supervisor

Employer

Trust In General (Top 2 Box)*Trust in Matters Relevant to Relationship (Top 2 Box)*

*Base: Have a Relationship

Trust “in general” correlates closely with “trust in relevant matters”












purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?

Amount Spent on Single Biggest Purchase in Past 12 Months

Slightly more than half have spent more than $1,000 on a single purchase in the past 12 months… but one-third (32%) are more frugal.

18%

14%

15%22%

8%

12%

11% <$250

$250 - < $500

$500 - < $1,000

$1,000 - < $5,000

$5,000 - < $10,000

$10,000 - < $25,000

$25,000 or more

Q.25 How much did you spend on it? [Select one]

$1000+ (net): 53%


Single Biggest Purchase in Past 12 Months

Q.24. What was your biggest single purchase in the past 12 months? [Open End]

<$250“Clothes dryer”“Device to back up my computer”“A mix master to make holiday cookie baking easier”

$250 - $499“Massage package”“An airline ticket from Yuma to MN”

$500 - $999“Flat screen TV” “Tires”“Central Air conditioner”

$1,000 - $4,999“Dental implant!““Washer and dryer”“Home improvement materials”

$5,000 - $9,999“Home repairs”“New (used) car”

$10,000 - $24,999“New car”“Vacation”

$25,000 or more“Swimming Pool”“$35,000 Certificate of Deposit”“New home”

Single biggest recent purchases made by employees range from the practical (tires, dental work) to the non-essential (swimming pool, massages, vacation).


8%

4%

6%

12%

13%

26%

29%

31%

33%

34%

44%

46%

Resources Used to Make Appliance/Vehicle Purchase Decision

More depend on their friends/family/colleagues and spouses/partners than on other resources when making appliance/vehicle purchase decisions. Sales professionals fall into the second tier of resources.

Q.26. Which, if any, of the following resources have you used when making a purchase decision on the following areas? – Appliances or Vehicles [Select one]

79% use at least one of these

resources

Sales professionals

Spouse/Partner

Friends/Family/Colleagues

TV/Radio/Public Personalities

Websites/Financial Websites

Social Networks/Online communities

Employer

Educational / reference materials

Technical materials

Advertising

Seminars

Other Resource

First Tier

Second Tier


17%

51%43%

51% 57% 55% 53%

30% 31% 33% 30% 37%

78%

38%45%

37% 31%19%

10%

15% 13% 8%6%

16%

95%89% 88% 88% 88%

74%

63%

45% 44% 41%36%

53%

Importance of Resources Used to Make Appliance/Vehicle Purchase Decision*

Spouses/partners are considered to be a very important resource by most for appliance/vehicle purchase decisions. Sales professionals are important for many of these, but not to the extent of several other resources.

Q.27. How important are each of the following resources when making purchases such as appliances or vehicles? [Select one]

Gov’t Employees Non-K-12 Educators

*Base: Use resource for appliance/vehicle purchase decision

Sales prof.

Spouse/Partner

Friends/Family/

Colleagues

TV/Radio/Public Pers.

Social Net/Online Comm.

Employer Techmaterials

Adv.Ed / ref materials

Websites Seminars Other resource

Somewhat ImportantVery Important


Resources Used to Make Financial Product Purchase Decision

With financial product purchase decisions, in addition to utilizing friends/family/colleagues or their spouse/partner, financial advisors are also top resources… and these employees have also used their employer as a resource more frequently… but fewer report using any resource in financial product decisions.

Q.26. Which, if any, of the following resources have you used when making a purchase decision on the following areas? – Financial Products [Select one]

Financial advisor

Spouse/Partner

Friends/Family/Colleagues

TV/Radio/Public Personalities

Websites/Financial Websites

Social Networks/Online communities

Employer

Educational / reference materials

Technical materials

Advertising

Seminars

Other Resource

68% use at least one of these resources… fewer resources used in making financial decisions than other

major purchase decisions!

Employers more frequently used when making financial decisions than other purchase decisions

(20% vs. 6%)


18%34%

46% 53% 46%38%

51% 52% 45%30% 37%

29%

77%56%

43% 34%39%

45% 20% 18%15%

18% 7% 18%

95%90% 89% 87% 85% 83%

71% 70%60%

48% 44% 47%

Importance of Resources Used to Make Financial Product Purchase Decision*

Q.28. How important are each of the following resources when purchasing financial products? [Select one]

Somewhat ImportantVery Important

*Base: Use resource for financial product decision

Financial Advisor

Spouse/Partner

Friends/Family/

Colleagues

TV/Radio/Public Pers.

Social Net/Online Comm.

Employer Techmaterials

Adv.Ed / ref materials

Websites Seminars Other resource

Spouses/partners are considered to be a very important resource by most for financial product purchase decisions, followed by financial advisors. Employers are important for many, but not to the extent of several other resources.


30% 32% 32%44% 46%

55% 49%36% 35%

60% 57% 55%39% 36%

26%30%

7% 11%

90% 89% 87%83% 82% 81% 79%

43% 46%

Contributor to Financial/Investment Product Purchase Consideration*

People who invest – own financial products -- state that fees/costs, company reputation, and performance are the strongest contributors to their financial purchase decisions.

Q.22. When choosing a financial or investment product, to what extent do each of the following contribute to your consideration of purchasing the product? [Select one]

Rec. fromfinancial

professionals

Rec. from other

sources

Company rep./trust-worthiness

Prior exp. with

company

Investment options

Investment perf/interest

rates

Fees/costs

Company advertising

Other

Plays Somewhat of a rolePlays very strong role

*Base: Own retail investments, ESRP, and/or checking/savings account


8% 8% 9% 11% 18% 22% 22%

27% 29% 31% 38% 36% 40% 45%

35% 34% 34%33% 31% 21%

21%

30% 29% 26% 18%15%

17% 12%

92% 92% 91% 89%82% 78% 78%

Attention Paid to Financial Documents

Q.23. When you’re deciding to purchase a financial product, what level of attention do you pay to the following documents or information from the offering company, if they are available to you? [Select one]

Prospectus and legal

documents

Descriptions of the

products/funds

Marketing materials

Summary of risks

and limitations

Summary of features

and benefits

Educational materials,

supplementary materials

Web site descriptions

*Base: Own retail investments, ESRP, and/or checking/savings account and Available to you

I read it allI read most of itI skim itI don’t read it

% Read at least some of it:

% Do not read it:

Of the documents/information included in this research, marketing materials are the least read, followed by prospectuses/legal documents and web descriptions. Less than one-third “read all” of any sort of financial document. They are more likely to read more of summaries than details.











purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?


How Often do you…

Government employees more frequently participate in other life habits than they do in activities related to their retirement-related financial needs.

Mean times per year (including ‘Never – 0’)

Have a routine dental

checkup

Go to a gym or

exercise

Read your (paper) mail

Plan and write down

your grocery list

Read your e-mail

Get a physical

Go out to dinner or to

a movie

Take a day trip

Take a vacation

Take your car in for servicing

99% 97% 66% 88% 96% 91% 94% 94% 94% 91%

% Do Activity

Q.30. How often do you… ? [Select one]

Figure out how much you need

to retire on

Look at your budget

Check your bank

account *

Check your retirement account **

Change how you invest your retirement account**

Examine your life insurance needs

FINANCIAL HABITS

OTHER LIFE HABITS

98% 88% 93% 69% 72% 73%

*Base: Have checking/savings account**Base: Have ESRP, annuities, and/or IRA

% Do Activity











purchase decisions?


habits?


habits?


experience levels?


experience levels?


like?


like?



method?



method?


Comfort Level in Financial Ability

Q.14. How comfortable are you in your financial ability today to…? [Select one]

Uncomfortable

Somewhat comfortable

Very comfortable

Feed yourself

/your family

Pay your regular

monthly bills

Pay for basic healthcare

Pay for moderate

extras

Put a little something away for

retirement

Make a basic

household appliance purchase

Pay for more

substantial extras

Make an electronics household appliance purchase

Take a vacation this year

Deal with an unexpected

financial emergency

Save what you think is enough for retirement

Most feel they can cover the day-to-day basic expenses, but discomfort increases in other areas – in particular, with covering an unexpected financial emergency and saving for retirement.

85%79%

68%


Feel comfortable

Financial Confidence Change Compared to Before Market Decline

Many have had their confidence shaken in their current financial ability to cover many areas of savings and expenses – particularly an unexpected financial emergency and saving enough for retirement.

Q.14. How comfortable are you in your financial ability today to…? [Select one]Q.15. Compared to before the financial market decline that began in 2008, has your confidence level changed in your financial ability to…? [Select one]

No change – about same

Yes, less confident today

Yes, more confident today

Comfortable in Financial Ability Today (Top 2 Box)

39% 44% 56% 52% 49% 52% 53% 68% 69% 79% 85%

Feed yourself

/your family

Put a little something away for

retirement


Take a vacation this year

Pay your regular monthly

bills

Make a basic household appliance purchase

Make an electronics household appliance purchase

Deal with an unexpected

financial emergency

Pay for basic healthcare

Pay for moderate

extras

Pay for more substantial

extras


Generational Financial Comparison

One-third of employees in these sectors consider their present financial situation to be on par with that of their parents at a similar age. Nearly half think it is better.

Q.17. When you compare your own overall financial situation today to what you think your parents’ was at a similar age, what is your impression? [Select one]

I’m better offAbout the sameI’m in worse shape

76%











purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?


Amount of Thought Given to Retirement Income

Most have given at least some thought to how they will get income during retirement; two-fifths say they have thought about it a lot.

Q.6. How much thought have you given to how you will actually get income during retirement? [Select one]

A lotSomeA littleNone

96%

They think about

retirement, yet…

They think about

retirement, yet…


Last Time Calculated Amount Needed to Retire

Despite this, almost one-third have never calculated how much they may need to retire.

Q.7. When was the last time you and/or your spouse/life partner calculated how much you will need to retire? [Select one]

Mean = 2.4 years ago and excludes Never/Don’t Know

Unsure, never or 10+ years


Expected Retirement Age

This uncertainty extends to planned retirement age… One-quarter do not know when they will retire.

Q.8. At what age do you expect to retire? [Select one]

Mean = 63.4 years


Changes as a Result of Financial Market Decline

Nearly three-quarters say they did not change the amount they invest for retirement as a result of the financial market decline. Perhaps to compensate, however, for various reasons, two-fifths say they now expect to retire at an older age.

58%

2%

41%

Q.9. Has your expected retirement age changed compared to before the financial market decline that began in September of 2008? [Select one]Q.10. Which of the following, if any, contributed to the change in your planned retirement age? [Select one]Q.11. Have you changed the amount you invest for retirement as a result of the financial market decline that began in 2008? [Select one]

Expected Retirement Age Changed Contributor to Increased Expected Retirement Age*

*Base: Expected Retirement Age

Increased

Yes – gone up Yes – gone downNo change

72%

10%

18%Retirement Investment Amount

Changed


Comfort with Current Financial Ability – Retirement Related Needs

One-third of government employees are uncomfortable with their current financial ability to save enough for retirement. The financial market decline has caused roughly four-in-ten to be more uncomfortable with their ability to save for retirement.

Q.14. How comfortable are you in your financial ability today to…? [Select one]Q.15. Compared to before the financial market decline that began in 2008, has your confidence level changed in your financial ability to… [Select one]

Gov’t Employees Non-K-12 Educators

Put a little something away for retirement

27% 38%

32% 28%

24%

11%


Comfort Level in Financial Ability Today to….

Uncomfortable

Compared to Before Market Decline, has Confidence Level Changed in Financial Ability to….

Somewhat comfortableVery comfortable

Yes – more confident Yes – less confident No change

Put a little something away for retirement


40

Employer Pension

Nearly three-quarters of Government employees say they are eligible to receive a pension, but strikingly, over one-third of those eligible are willing to admit that they lack knowledge of how the benefit will be calculated.

Q.35. Will you be eligible for pension retirement income from your employer? [Select one]Q.36. How confident are you that your pension plan and your income from it will remain unchanged throughout retirement? [Select one]Q.37. Do you know how your pension plan benefit will be calculated? [Select one]Q.38. What percentage of your household’s retirement income do you expect to come from your pension plan? [Select one]

71% say they are eligible for pension Retirement Income

Yes No

Know Pension Benefit Calculation*

13%

19%

36%

32%<25%

25-<50%

50-<75%

75% or more

Percent of Household Retirement Income Expected from Pension*

Mean = 54.7%


Expectations and Confidence: Social Security and Pension Income

Only half are confident that their pension income will remain steady. The majority expect that Social Security will be a source of retirement income.

Q.39. Do you expect to receive retirement income from Social Security? [Select one]

Confidence that Pension Plan Income Will Remain Unchanged Throughout Retirement*

*Base: Eligible for Pension Retirement Income

51%

49%

Expect Social Security Income


Investing in ESRP

The majority of ESRP owners are currently investing in their plans, but over half of those currently investing would like to be contributing more than they are presently.

Q.40. Are you currently investing in your employer’s defined contribution retirement plan? [Select one]Q.43. Please read the following statements and select the one that best describes your feelings about the amount you currently contribute to your defined contribution retirement plan. [Select one]

Currently Investing in ESRP*Feeling About Current ESRP

Contribution Level**

*Base: Own ESRP**Base: Currently investing in ESRP


Why Not Investing in Employer-Sponsored Retirement Plan*

Some are not participating in an employer-sponsored retirement plan for technical reasons, such as employer not offering it or ineligibility. Others offer a varietyof reasons for why they are not participating – including lack of knowledge about the plan/investments, preference for other types of investments, and lack of money.

Q.44. You indicated that you are not currently participating in your employer’s defined contribution retirement plan. Why not? [OPEN END]

“It's not available to me yet”“Not offered”

“I do not like the fees and fund choices.”“Funds are used for daily living costs”

“Know I should - but can barely pay today's bills”“Prefer to do this on my own.”

“Have personal plans”“Employer never stressed it”

“I feel it is too risky, does not perform as indicated. I just don't trust someone else messing with my money.”

“Don't know how it works”“CD's are better investment”

“Right now debt reduction is my biggest concern”“I do not know what it is.”

“I am new to my current employer. Have participated in the past for years.”

“No matching funds”“Didn't know that we had it until recently.”

*Base: Do not own ESRP or own but are not currently investingComments have not been coded to quantify, but rough estimates are that one-third of those who own an ESRP but are not currently investing say it is because they prefer to invest elsewhere or already have other investments; roughly 20% say they cannot afford to contribute; 10% say they are not sure what the plan is or what it entails.











purchase decisions?


habits?


habits?


like?


like?


experience levels?


experience levels?



method?



method?


Employer Involvement in Financial Education

Few look to their employer for financial education. Among the one-quarter who do, they would primarily like more retirement savings ideas.

Q.18. Please read the following statements and select the one that best describes your feelings. [Select one]Q.19. What type of additional financial education would you like to be receiving through your employer? [Select one]Q.20. How would you like to receive additional financial education? [Select one]

Fund performance

info

Investment options info

Investment strategies

info

Ideas for saving for retirement

Ideas for saving, in general

Other

Employer Role in Providing Financial Education

Additional Financial Education Wanted Through Employer*

*Base: Want employer to make more financial education available

Seminars / meetings

Printed materials

Online Other

Method Wanted for Receiving Additional Financial Education Through Employer*

46

Preferred Method of Receiving Investment Information*

Two-fifths who own retail and/or employer-sponsored retirement plans prefer to receive investment information in the mail – while just over half prefer an on-line method. Very few would like it to come via phone.

Q.21. What is your most preferred method of receiving information about your investments? [Select one]

*Base: Own retail investments and/or ESRP


51% prefer an electronic method


Questions / Comments

Visit

Ingretirementresearch.comfor the Study Report, other articles and research updates, and special reports and tools for your

employees

ing studies the economic outlook of todays government workforce public employees in focus ing digs...

Documents

local government employees

retirement insurance

financial situations

financial habits

retirement research

retirement picture

financial confidence

local government entities