T. Rowe Price: Understanding Investor Attitudes Toward Retirement

T. ROWE PRICE STUDY:

UNDERSTANDING INVESTOR

ATTITUDES TOWARD RETIREMENT

February 2017

2017-US-30472

2 2

Table Of Contents

METHODOLOGY

RETIREMENT EXPECTATIONS

THE GENDER GAP

THE LONGEVITY BONUS

FINANCIAL ATTITUDES AND HABITS

3 3

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


5 5

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)

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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


7 7

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 moreTaking part in more leisure activities (e.g. golf, reading, biking, crafts, etc.)

Spending more time with familySpending more quality time with my spouse/partner

Getting healthier/more fitEnjoying the fruits of my labor

Spending more quality time with my friendsTaking part in more cultural events (e.g. music concerts, theater, sports events, museums, etc.)

Meeting new people/making new friendsLearning new skills/hobbies

Becoming more involved in the local community/volunteeringAccumulating enough wealth so that I can guarantee my children and grandchildren will live comfortably

Downsizing or buying a smaller homeRelocating to a different state or town

Getting back to natureGetting more spiritually or religiously involved

Doing more bold, adventurous, or courageous thingsKeeping up with technological advancements

Becoming more philanthropicLiving in a more environmental/sustainable way

Investing in an additional house or apartmentReinvigorating my life with an old passion

Living in a different countryTeaching

Focusing on dating/finding a partnerStarting my own business

Going back to school

Relaxers/ Indulgers Personal reinventors/new experiencers

Base: Relaxers/Indulgers (N=760)

Personal Reinventors/New Experiencers (N=685)

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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” (Top 2 Box %)

64%

70%

71%

73%

70%

81%

76%

78%

0% 20% 40% 60% 80% 100%

To me, personal accomplishment is moreimportant 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 feelrelevant

I feel connected to people of all ages, not just those who are my “generation”


Base: Relaxers/Indulgers (N= 760)


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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 new friends and relationships

Is passionate about volunteering/giving back

Reinvents their life with a renewed enthusiasm for what thefuture holds

Takes risks and is adventurous

Is fulfilling untapped talents and unrealized dreams


Base: Relaxers/Indulgers (N= 760)


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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)

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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)

THE GENDER GAP

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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)

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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 moreTaking part in more leisure activities (e.g. golf, reading, biking, crafts, etc.)

Spending more quality time with my spouse/partnerGetting healthier/more fit

Spending more time with familyEnjoying the fruits of my labor

Spending more quality time with my friendsTaking part in more cultural events (e.g. music concerts, theater, sports events, museums, etc.)

Learning new skills/hobbiesMeeting new people/making new friends

Becoming more involved in the local community/volunteeringRelocating to a different state or town

Accumulating enough wealth so that I can guarantee my children and grandchildren will live comfortablyGetting back to nature

Downsizing or buying a smaller homeDoing more bold, adventurous, or courageous things

Keeping up with technological advancementsGetting more spiritually or religiously involved

Becoming more philanthropicLiving in a more environmental/sustainable way

Reinvigorating my life with an old passionTeaching

Living in a different countryInvesting in an additional house or apartment

Starting my own businessGoing back to school

Focusing on dating/finding a partner

Men Women


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RETIREMENT ATTAINABILITY

Thinking about your “ideal retirement”, how attainable or unattainable do you feel this is?


THE LONGEVITY BONUS

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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, there have been reports from

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.

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LONGEVITY BONUS: Emotions

And how do you feel about this idea that we could have an additional 30 years added to our lifespan?


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LONGEVITY BONUS: Impact

Would this information (that we could have an additional 30 years) impact how you plan and save for retirement? (% Yes)


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LONGEVITY BONUS: Impact

In what ways do you feel this “additional 30 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)

FINANCIAL ATTITUDES

AND HABITS

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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


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)

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FINANCIAL RETIREMENT PREPARATION

Do you feel that you should be doing more to financially prepare for your retirement years?


25 25

RETIREMENT INVESTMENT BARRIERS

What is holding you back from doing more? (among those who feel they could be doing more)


26 26

RETIREMENT PREPARATION

And which of the following steps have you already taken [IF RETIRED: did you take] to prepare for retirement?


Business

T. Rowe Price: Understanding Investor Attitudes Toward Retirement