International Retirement Security Survey

Transcription

1 International Retirement Security Survey July 00 (Copyright 00 by AARP. All rights reserved.)

2 Table of Contents I. Background and Objectives II. III. IV. V. VI. VII. VIII. IX. X. Executive Summary Methodology and Profile of Respondents Hopes, Fears and Expectations Financial Preparedness Health Issues Work and Continued Employment Role of Government Current Concerns Conclusions 00

3 Background and Objectives

4 Background and Objectives Retirement security is a pressing and complex issue facing many individuals, governments, and businesses around the world in the coming decades. Many trends are converging that directly impact retirees and their sources of retirement funding: populations are aging, life expectancies are high and still rising, the tax base for financing retirement and health care benefits is stressed, health care costs are rising, and individual savings are often not sufficient for a retirement that may last twenty to twenty-five years or more. AARP commissioned Harris Interactive to conduct an International Retirement Security Survey among the general population age 0- in 0 countries (G plus Sweden, Australia and the Netherlands). The goal of this major international undertaking is to understand the attitudes and behaviors surrounding retirement issues as well as the level of confidence among current and future retirees about their own retirement including: How optimistic are they about retirement? What are the expected sources of retirement funding? How financially prepared for retirement are they? What is their present state of health? How confident are they about health-related factors during retirement? What are their views on employment during retirement years? How informed and confident are they about government-funded pensions?

5 Executive Summary

6 Executive Summary Background Income security during retirement is an increasingly important international issue in light of population aging, shrinking or slowly growing populations of working age, and public pension systems under stress. Life expectancy has been increasing, and, when coupled with early exit from the labor force, is resulting in longer periods of time spent in retirement. This period of retirement brings with it a significant international public policy challenge in ensuring that individuals have sufficient income security to live comfortably throughout their retirement years. Retirement income typically comes from three sources, although different countries rely more on some sources than others. One source is public funding, designed to guarantee through governmental transfers a minimum income standard during retirement. Another source consists of employer-provided pensions, while still another consists of private household savings. At the same time, the retirement income systems currently in place are impacted by demographic forces such as the sheer number of individuals who will be retiring, the large increases in older-age life expectancy throughout many developed countries, and declining ratios of workers to retirees. They are also impacted by economic forces such as rising health care costs. For individuals, longer retirements mean stretching savings over more years. For society, they also mean that public pension and health benefits must also be paid for more years.

7 Executive Summary To explore the issues central to retirement income security across various countries, AARP designed an International Retirement Security Survey. This survey examines key issues in retirement security across ten developed countries selected especially for their varying emphasis on the three potential sources of retirement income. These sources provide the income that, along with health care benefits and long-term care, foster economic security in old age. With this survey, we examine opinions about retirement security in the United States, Canada, Australia, Japan, Germany, France, Italy, the United Kingdom, Sweden and the Netherlands. Slightly over,000 respondents were included in this telephone survey (approximately 00 in each country) which was administered for AARP by Harris Interactive, an international research organization with field offices in each country used in this study. The primary goal of this study is to improve our understanding of attitudes and behaviors surrounding personal and national retirement issues, and to assess the public s confidence in having sufficient income to retire comfortably, attend to their health and long-term care needs, and live securely after leaving the workforce. The AARP International Retirement Security Survey used a target audience consisting of the general population age 0 to. Fieldwork was conducted from May th to June nd, 00. Interviews were completed using computer-assisted telephone interviewing (CATI), and ranged from -0 minutes in length.

8 Executive Summary Key Results Guarded optimism, limited thought about retirement issues, a feeling of being less than fully informed about retirement, a lack of confidence in what government can provide in the future, and a belief in shared responsibility for retirement provision characterize attitudes toward retirement among the majority of adults across all ten countries. Guarded Optimism About Retirement When respondents were asked about their general optimism about retirement, in the aggregate we found guarded optimism to be the predominant outlook, with only very optimistic, two out of five () at least somewhat optimistic, and two in five () somewhat or very pessimistic. The results, however, varied by the following demographic factors: Employment status: Those who are already retired express the most optimism ( somewhat or very optimistic), followed by those who are employed (). Less than half of those who are not working express optimism toward their retirement (). Income: Respondents with higher incomes are more optimistic toward retirement than those with lower incomes ( who earn $0,000 or more per year are optimistic, versus who earn less than $0,000 being optimistic). Age: Respondents ages to are more optimistic than respondents ages 0 to ( versus ). Marital status: Those who are married show more optimism about their retirement than those who are not married (0 versus 0). Education: Individuals who have obtained at least a college degree are somewhat more optimistic than those who do not have a college degree ( versus ).

9 Executive Summary Optimism toward retirement also varies quite substantially by country. In the United States, Canada, the United Kingdom, Australia and Japan, at least six in ten are optimistic about their retirement. Australians and Canadians are the most optimistic, with over three in four () saying they are optimistic when they think about their retirement. By contrast, in Germany, France and Italy, only slightly over one-third say they are optimistic about retirement. Thinking About Retirement More than half of individuals across all countries () have given retirement at least some thought, and one in four () have given it a great deal of thought. However, nearly one in five () have given no thought at all to retirement. Significant differences are also evident by employment status, where only half of those who are currently not working have given retirement at least some thought. How much someone has thought about retirement also varies dramatically by country, with giving retirement a lot of thought in both the US and Germany ( have given retirement at least some thought in these two countries), while only of respondents in Italy and Sweden have thought a lot about their retirement (and less than half have given retirement at least some thought).

10 Executive Summary Thinking about retirement does not necessarily correlate with expectations. Interestingly, Americans and Canadians have given their retirement more thought and are also relatively optimistic, whereas Germans have also though about it a great deal yet report significantly lower levels of optimism about their retirement. Information About Retirement On the whole, respondents do not feel very well informed about the things they need for a happy and successful retirement. Only one in four () rate their level of information at an or more on a 0-point scale where 0 represented extremely well informed and 0 not at all informed. The average rating for how informed people are about what they need for a happy retirement is a lukewarm.. These results vary by employment status: current retirees more often say they feel informed (mean of.) than do the employed (.). Those not working are even less likely to feel informed (.0). Perceived information levels vary by country, led by the US, where 0 rate their information level at an or higher on a ten-point scale. Canadians feel nearly as well informed, with rating their information level at an or higher. Residents of Japan, Sweden, France, and Italy report being much less informed about the things they need for a happy and successful retirement, with less than 0 of individuals in these countries providing ratings of or higher. Notably, in Japan, only slightly more than one in ten respondents () provide these high ratings when asked how informed they are about retirement issues. 0

11 Executive Summary Expected Sources of Income in Retirement Despite the current and anticipated financial and demographic pressures on public pension systems in many developed countries, and the likelihood that these systems in their current forms may not be financially sustainable, residents of these countries have high expectations regarding the public pensions. The public pension systems are seen as a critical retirement income source, with of the respondents expecting them to be a major source of their retirement income and another expecting them to be a minor source of income. In sum, over four in five individuals () are counting on a public pension as a source of income when they retire. After public pensions, employer-provided/occupational pensions (), earnings from employment (), workplace retirement savings programs () and other personal savings () are most commonly expected to be major retirement income sources. Notably, our results show that few believe inheritance () and family support () will be a major income source when they retire. Some variations in income sources by country are evident. In four countries (Germany, Italy, Netherlands, and Sweden), public pensions are expected to be the primary retirement income source. In the US, UK, and Australia, however, workplace retirement savings programs are seen as primary by more people. In no country do more than ten percent of the residents see family support as a major source of income, nor is inheritance expected to play a major role.

12 Executive Summary In response to a related question, which asked which source will provide the largest share of income in retirement, public pensions were again rated the highest, with percent saying they would. No other option was selected by more than percent of respondents. Retirement Income Adequacy People in the developed countries are living longer than ever before. In the eight European and North American countries surveyed, for example, (France, Germany, Italy, Canada, The United States, The United Kingdom, Sweden, and The Netherlands) the average life expectancy at ranges from - years for women, and from - years for men. The fact that these are average life expectancies means that many persons will live well beyond these average life expectancies. It is anticipated that advances in health care and living standards will continue to increase these life expectancies in the future. To assure adequate income for retirement, with many people retiring in their early 0s if not earlier, people should thus be planning for living or more years after they retire. How confident are people that they can live comfortably for these years? Our study shows that confidence in the adequacy of retirement income is very limited. More than two in five respondents () are not confident that they will have enough money to live comfortably in retirement for at least years. Conversely, a mere report that they are very confident they will have enough money for a comfortable retirement. These figures match closely those dealing more generally with retirement optimism; as noted above, only report being very optimistic about their retirement.

13 Executive Summary Confidence about having enough money for retirement varies country. In Canada, fully percent are somewhat () or very () confident that they will have enough money to live for or more years after retirement, followed by the Netherlands (0 somewhat or very confident), the US (at ), and Australia (at ). In half the countries surveyed, however, (Germany, France, Italy, Sweden, and Japan) those who are confident are in the minority. Italians are the least confident, with only one in three stating that they will have enough money to retire comfortably for years or more. Current Health Status One s overall state of health and access to affordable quality health care are also important factors contributing to confidence about retirement and quality of life in retirement. Many respondents feel good about their health status, with 0 rating it either excellent or very good, and another rating it good. As with the economic indicators, these percentages vary by employment status and by country. Employed individuals show significantly higher self-reported ratings of their current health status than the retired and non-working, with nearly nine in ten () rating their health at least good. At most seven in ten of the retired and non-working say their current health status is at least good. Age and income are also factors when it comes to self-reported health. One-quarter of the residents ages to in the 0 countries consider themselves to be in fair or poor health, compared to only of the younger cohort. Additionally, those with higher income ($0K and over) report that they are in better health than those earning less than $0K.

14 Executive Summary Comparisons across countries also show differences in self-reported health status, with Australians ( excellent/very good) providing the highest ratings, followed by Canada (), the US (), and the UK (). Italians (), Germans (), the Japanese () and the French () are significantly less positive about their health. Health Care Concerns in Retirement: Paying for Long Term Care All ten countries in our study have a national health care insurance system for retirees and all ten share similar concerns about rising health care costs. This is especially noteworthy in the wake of the changing demographics, where people are living longer and thus increasing the probability that they will require health and long-term care in their retirement years. In this study, respondents generally express some confidence in having access to quality health care in retirement (), being able to pay for medical expenses (0), being able to pay for prescription drugs (), and expecting good health throughout their retirement (). In comparison, fewer feel they will be able to pay for long term care () such as nursing home or home health care should they need it during their retirement. The lack of confidence about having enough money for long term care can be found across all of the countries surveyed. In three countries, in particular, fewer than half of respondents express this confidence: the UK, Germany, and Italy. In fact, in all ten countries, the level of confidence expressed regarding ability to pay for long-term care is the lowest of the five health-related questions presented in this general category.

15 Executive Summary Sources of Health Care Financing As was the case with retirement income, respondents believe that governmentsponsored health care programs will play the primary role in funding their health care costs during retirement. Almost half of all respondents () feel these programs will pay for all or most of their health care in retirement, with only seeing no role for this funding source. Nonetheless, about one in three respondents () believe that most or all of their health care costs during retirement will be paid from their own savings. In line with the previously reported low rating of family as a major income source in retirement, very few believe that their family or a caretaker would pay all () or most () of their health care costs in retirement. Italians and Germans are most likely to see government sources paying some or all of their health care costs during retirement ( and, respectively), whereas few Americans () believe the government will pay most or all of these expenses. Surprisingly, nearly one in three Americans () say that government-sponsored health care will pay none of their health care costs in retirement, despite the presence of Medicare and Medicaid and the role these programs play in covering current health care costs of older persons in the US.

16 Executive Summary Confidence in Government Despite the expectation of at least some government support in the areas of retirement income and health care, residents of all of these countries are consistent regarding their lack of confidence in the ability of their governments to provide these benefits in the future. With regard to health care, there is limited trust in the government s current ability to provide even current retirees with health care benefits. The overall rating of trust in the current system is at an average of. on a 0 point scale (with 0 representing total trust and 0 representing absolutely no trust ). Trust is even lower when it comes to covering future retirees health care benefits. This received an average rating of only. on the 0 point scale. Trust in government s current ability to pay the public pensions of current retirees is only slightly higher (an average rating of.0), but trust in its ability to pay public pensions in the future declines to an average of only. (a drop of. points). While there are differences across countries, respondents in every country have less trust that their government will be able to pay retiree health benefits or public pension benefits to future retirees. With regard to public pension benefits, the declines range from. (Canada, Japan and Italy) to larger drops in Sweden (.), France (.), the US (.), Australia (.), Germany (.). The survey also suggests that people who reside in countries that have undergone substantial pension reforms may be less trustful that their government will be able to pay retiree benefits than people in countries that have not experienced such changes.

17 Executive Summary In addition to the lack of trust in the government s ability to pay for current and especially future retiree benefits, public pensions are not regarded as providing a very adequate retirement income. This finding is consistent from a public policy perspective, given that in many instances public pensions are designed to serve as only one of the three major sources of retirement income and security. Our study found that a large percentage of individuals () expect public pensions to be a major source of their retirement income. Can retirees live comfortably on these pensions? Our results show that only one out of five respondents (0) feel the public pensions in their countries enable people to live comfortably in retirement. In contrast, over three in four respondents () say that retires cannot live comfortably on public pensions. Far more feel this way in Japan (0), and nearly as many do in the Unites States (), Italy (), and the UK (). These opinions are held regardless of income, age, marital status, or level of education. Work and Retirement While retirement is typically viewed as a time to stop working completely, less than one out of three respondents () across all countries in this study plan to do that. Italians () are the most likely to say they expect to stop working; in fact, Italy is the only country in which a majority plan to stop work completely. The US has the lowest percentage of individuals who plan to stop working completely when retired (); the most frequently mentioned retirement activity for US respondents is working part-time (). Across all countries, the more frequently mentioned options include working part time (), alternating between periods of work and leisure (), and volunteering ().

18 Executive Summary Why do people wish to continue to work after retirement? Interestingly, money is not the prime motivator, coming in third among four options presented; only four in ten () rate money as being very important in their post-retirement employment plans. The primary reasons people expect to work after retiring is that they want to stay involved and connected () and they enjoy work (). These reasons for working after retirement are of nearly equal value to employed individuals, those who are not currently working, and current retirees. Policy Solutions to Retirement Challenges: An Emerging Consensus A major international political challenge concerns how countries will adapt their current income security and health insurance systems to meet the needs of future retirees. Is saving for retirement an individual responsibility, or is there an essential role for government? Who is responsible for supporting those who are retired? When we asked about this, we found a consensus that government, employers, and individuals themselves all have a responsibility for providing retirement income, with government most often cited as having the primary responsibility. More than nine in ten respondents () believe that government programs have at least some responsibility in supporting retirees, with contending government has the primary responsibility, and saying that it has some responsibility. About one in three () say that individuals themselves should bear the primary responsibility for supporting themselves when retired, followed by one in five () who feel that employer-based programs should bear this responsibility.

19 Executive Summary In half of the countries, namely Italy, Sweden, Japan, France and Germany, the prevailing opinion is that government should be primarily responsible, whereas in the remaining countries, respondents are more likely to believe that government should bear some of the responsibility. Nonetheless, government programs receive the highest ratings across all countries. Policy Solutions Re-examining policy options to assure retirement security should involve a national discussion about what people want from their government and how much they are willing to pay. To examine public opinion about various options that would ease the stress on public pension systems, we presented a list of options and asked them to choose which ones they found acceptable, and to what degree they would be acceptable. By a substantial margin, raising the taxes of higher paid workers is generally seen as the most acceptable choice for the government to make in order to maintain public pension funds; two out of three respondents () rate this alternative at least somewhat acceptable. In the aggregate, moderate acceptability is also found for increasing the size of the labor force by allowing more immigrants into the country to work () and for shifting to private savings accounts (). The least acceptable choice is to raise the retirement age required to qualify for public pensions, with only one in three () saying this alternative is at least somewhat acceptable. Significant cross-country differences in support for the options emerged. The United States and France are the countries least open to increasing the size of the labor force by allowing more immigrants into the country to work; less than one-third in these countries find this option acceptable ( in US and 0 in France). Conversely, more than four in five Swedish respondents () say this option acceptable.

20 Executive Summary Increasing the retirement age required to qualify for public pensions is unacceptable to a majority respondents in each of the countries surveyed, with fewer than half in any country reporting that this alternative is acceptable. Germans, however, find this to be a more acceptable option () than residents of any other country. Italians and the Japanese are the least open to increasing future retirement benefits at a lower rate than currently provided for. Less than a third of people in each of these two countries find this option acceptable, compared to slightly over one half in the US () and the Netherlands (). Shifting to private savings accounts was rated as at least somewhat acceptable most often by France () and the US (), and least often by Australia () and Italy (). Differences in policy option acceptability are also found by education level, with respondents who have college degrees far more likely to accept allowing more immigrants into the country to work ( versus in favor). Those with college educations are also more likely to accept raising the retirement age required to receive benefits (0 versus 0), shifting to private accounts ( versus ), and raising taxes for everyone in the workforce ( versus ) 0

21 Executive Summary The Public Challenge to Policy Makers Our results show a disturbing lack of confidence in the government s ability to pay public pensions. While a large percentage of our respondents expect to rely on public pensions as a major source of income during their retirement, the overall level of trust that they have in their government s ability to pay public pensions to current and future retirees is greatly lacking. Overall, only of the total respondents rated their trust in the government s ability to pay benefits to current retirees as an or higher on a ten-point scale. Only seven percent of total respondents rated their trust in their government's ability to pay future pensions as or higher. This lack of confidence has been found not only among the general public. A recent AARP study of opinion leaders in G countries found that over half () of the leaders surveyed do not feel their nations public pensions/retirement benefits will enable the average retiree to live comfortably in retirement. Opinion leaders in Italy, Canada, and the UK were the least confident that retiree s pension benefits would be sufficient for an older person to live comfortably. Concluding comments Global increases in longevity and rising health care costs mean that government spending for retirement and health programs will put increasing pressure on government budgets. The findings of this survey show that people in ten developed countries view their retirement with guarded optimism. A surprising number, however, have given their retirement little or no thought and a large proportion do not feel very well informed about the things they need for a happy and successful retirement. Many persons polled in the study also expect that public pensions and health care benefits will play a primary role for their retirement security. Yet, they lack confidence that their governments will be able to provide these benefits in the future. Many are therefore not confident that they will have enough money to live comfortably through retirement. 00 International Opinion Leader Study on Global Aging; AARP.

22 Executive Summary The study shows that while attitudes toward retirement differ considerably from country to country, there are some areas of consensus regarding the challenges. While the findings reveal substantial challenges, they also suggest potential remedies. Large percentages of adults in all countries expect some level of work to be a part of their retirement years, so increased opportunities for the employment of older persons could benefit both older persons and the economies in which they work. Respondents also see more taxes from higher income persons to support public pension systems as an acceptable remedy to the fiscal strains these systems face. And finally, the lack of information noted by many respondents represents an opportunity for public education campaigns to help individuals themselves better prepare for their retirement. The overall challenge for all governments will be to make a genuine effort to promote greater understanding of retirement security issues, open a real debate, engage their citizens in finding and agreeing to solutions and to close the gaps between the current situation, the future outlook, and the preferences and expectations of their populations. While the citizens in these countries do not view government as the sole source of support for the elderly, they still expect government to be a significant source of support in their old age. Governments in developed countries need to build confidence that they will meet their future commitments by preparing now for their rapidly growing aging populations.

23 Methodology and Profile of Respondents

24 Methodology The ten countries included the G plus three other developed countries that represent various views on retirement security issues: United States, Canada, United Kingdom, Australia, Japan, Germany, France, Italy, Sweden and the Netherlands. The target audience for this study was the general public age 0-. Four hundred respondents fitting this age criterion were randomly surveyed per country, for a total of,0 respondents in all. The fieldwork was conducted in all countries from May June, 00. Interviews were all completed via computer-assisted telephone interviewing (CATI). The interviews ranged from -0 minutes in length. The interviews are representative of the demographic distribution in each country, reflecting the population aged 0-.

25 Methodology The distribution of the interviews (compared to the quotas) are as follows: US CAN AUS UK GER FRA ITA SWE NLD JPN Male 0- () () () (0) () () () 0 (0) () () Male 0- () () () () () () () () () () Male 0-0 () 0 (0) () () () () () () () () Male - () () () () () () () 0 (0) () () Male 0- () 0 (0) () 0 (0) 0 (0) () () () () 0 () Female 0- () () () () () () () () () () Female 0- () () () () () () () () 0 (0) (0) Female 0- () () () () () () () () () () Female - () () () () () () () () () (0) Female 0-0 (0) () () () () () () () () 0 () TOTAL

26 Profile of Respondents Total Age Gender Age - Age 0- Age 0- Female 0 Age 0- Age 0-0 Marital Status Male 0 Employment Status Income Not Working Retired Less than $0,000 USD Married Employed $0,000 or more USD Refused 0 0 Living w/ partner Divorced/Separated Widowed Single

27 Interpretation of Data Results are typically shown at the total level and across all ten countries. For individual questions and topics, we have selectively shown sub-groups within countries which are either significant or considered most important. For examples, in some question areas analyzing data by age provided the most insight and in other instances it may have been education or work force status. All statistical tests of significance have been conducted at the confidence level. Data indicating differences of or percentage points are considered significant for between country comparisons. When means were calculated, don t know answers were removed from the base. Net responses represent those respondents who made one or more comments in a particular category. An asterisk (*) on a table signals a value of less than one-half percent (0.). A dash (-) represents a value of zero. Percentages might not always add up to 00 because of computer rounding or the acceptance of multiple answers from respondents. Percentages may also add to more than 00 due to the acceptance of more than one answer from a respondent to a particular question, or to less than 00 due to don t know answers. The base for each question is the total number of respondents answering that question. Note that in some cases results might be based upon small sample sizes (e.g., under 0). This is typically true when questions were asked of subgroups. Caution should be used when drawing conclusions from the results of these small samples.

28 Hopes, Fears, and Expectations

29 Optimism About Retirement While overall perceptions lean towards optimism for retirement, a large minority (approximately four in ten) are somewhat or very pessimistic about their retirement. Those that are currently retired are significantly more likely to be optimistic about their retirement, with saying that they are very optimistic and saying that they are somewhat optimistic. Total Very pessimistic 0 Dk/Ref Very optimistic By Employment Status Very optimistic Somewhat optimistic Somewhat pessimistic Somewhat pessimistic Somewhat optimistic Very pessimistic Dk/Ref 0 Base: n=,0 Q. In general, thinking about your retirement, are you Retired Employed Not Working n= n=, n=

30 Optimism About Retirement Among countries surveyed, those in Australia and Canada are notably more optimistic when it comes to their retirement, while those in Italy, Germany, and France are the least optimistic. By Region Very optimistic Somewhat optimistic Somewhat pessimistic Very pessimistic Dk/Ref US CAN UK AUS GER FRA ITA NLD SWE JPN Base: n=0 (weighted base all countries) Q. In general, thinking about your retirement, are you 0

31 Optimism About Retirement Optimism seems to increase with proximity to retirement as those ages to are significantly more likely to have an optimistic outlook on their retirement than those 0 to years of age. Individuals that have earned a college degree or higher as well as those with household incomes of USD$ 0,000 or more are also significantly more optimistic when it comes to their retirement. By Key Demographics Income Age Marital Status Education Very optimistic Somewhat optimistic Somewhat pessimistic 0 Very pessimistic Dk/Ref <$0K n=, $0K or more n=,0 0 Ages 0- n=, Ages - n=,0 Married n=,0 0 Not Married College Degree No College Degree n=, n=, n=, Q. In general, thinking about your retirement, are you

32 How Much Have They Thought About Retirement? Most retirees say that before retiring they gave their retirement a lot of thought. Among those not yet retired, approximately two in ten express a similar viewpoint. Overall, say that they gave or have given their retirement little to no thought at all. Total By Employment Status No thought at all A lot of thought A lot of thought Some thought A little thought No thought at all 0 DK/Ref A little thought Some thought 0 Base: n=,0 Q. [EMPLOYED / NOT WORKING] Overall, how much have you thought about your retirement? Have you given it [RETIRED] Overall, how much did you think about retirement before you actually retired? Did you give it Retired n= Employed n=, Not Working n=

33 How Much Have They Thought About Retirement? When it comes to the amount of time spent thinking about their retirement, there are significant differences across countries. Those in the US and Germany display more of a preoccupation with their retirement than any of the other countries, with Canada falling closely behind. The majority of those in France () and Sweden () say that they have given their retirement little or no thought at all. With just under half giving retirement at least some thought, those residing in Italy and the Netherlands also display a lower preoccupation with retirement than many of their counterparts. By Region A lot of thought Some thought 0 A little thought No thought at all DK/Ref US CAN UK AUS GER FRA ITA NLD SWE JPN Base: n=0 (weighted base all countries) Q. [EMPLOYED / NOT WORKING] Overall, how much have you thought about your retirement? Have you given it [RETIRED] Overall, how much did you think about retirement before you actually retired? Did you give it

34 How Much Have They Thought About Retirement? Perhaps focused on just covering expenses for the day-to-day, of those with household incomes of below USD$0,000 say that they have given their retirement little to no thought at all. As would be expected, those ages to years of age are significantly more likely than those ages 0 to to say that they have given their retirement at least some thought. Those who are married, as well as those who have earned a college degree, are also more likely to say that they have given their retirement at least some thought. By Key Demographics Income Age Marital Status Education A lot of thought 0 0 Some thought A little thought 0 No thought at all DK/Ref 0 0 <$0K n=, 0 0 $0K or more n=,0 0 Ages 0- n=, 0 Ages - n=,0 Married n=,0 0 0 Not Married n=, College Degree n=, No College Degree n=, Q. [EMPLOYED / NOT WORKING] Overall, how much have you thought about your retirement? Have you given it [RETIRED] Overall, how much did you think about retirement before you actually retired? Did you give it

35 How Informed They Feel About Things Needed for a Happy and Successful Retirement Overall, about one quarter feel extremely or well informed about planning a happy and successful retirement. Over half fall within in the mid-range of the 0 to 0 informed scale, with giving a rating between and on how informed they are about planning a happy and successful retirement. Current retirees are significantly more likely to say that they feel informed than are those who are employed or are not working. Total extremely well informed not at all informed 0 0 Mean. 0 By Employment Status extremely well informed not at all informed 0 0 Mean Mean. Mean.0 Retired Employed n= Base: n=,0 n=, Q. On a scale of 0-0, where 0 means not at all informed and 0 means extremely well informed, [EMPLOYED / NOT WORKING] how informed would you say you are about the things you need for a happy and successful retirement? [RETIRED] how informed did you feel, before you actually retired, regarding the things you needed for a happy and successful retirement? Not Working n=

36 How Informed They Feel About Things Needed for a Happy and Successful Retirement On average, those residing in the US and Canada feel more informed about planning a happy and successful retirement than do their counterparts in other countries. On the other hand, individuals in Japan, France and Sweden feel the least informed, with Italy not far behind. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN extremely well informed Top Box Mean Base: n=0 (weighted base for all countries) Q. On a scale of 0-0, where 0 means not at all informed and 0 means extremely well informed, [EMPLOYED / NOT WORKING] how informed would you say you are about the things you need for a happy and successful retirement? [RETIRED] how informed did you feel, before you actually retired, regarding the things you needed for a happy and successful retirement?

37 How Informed They Feel About Things Needed for a Happy and Successful Retirement On average those with a college degree are more likely to say that they feel informed about their retirement than those without a college degree. Similarly, those that are married and those that have household incomes of USD$0,00 or more are more likely to say that they feel informed about their retirement. Approximately three in ten individuals ages to rate highly on the informed scale, while just of those ages 0 to share similar ratings. By Key Demographics extremely well informed Top Box Mean <$0K. Income $0K or more Age -. Marital Status Married. Not Married. Educational College Degree. No College Degree. n=, n=,0 n=, n=,0 n=,0 n=, n=, n=, Q. On a scale of 0-0, where 0 means not at all informed and 0 means extremely well informed, [EMPLOYED / NOT WORKING] how informed would you say you are about the things you need for a happy and successful retirement? [RETIRED] how informed did you feel, before you actually retired, regarding the things you needed for a happy and successful retirement?

38 Financial Preparedness

39 Age They Plan to Retire vs. Age They Think They Will Actually Retire Among those currently employed, say that they plan to retire by age or earlier, believe that this will actually come to fruition. By Employment Status: Employed Q. [EMPLOYED] At what age do you PLAN to retire? Q. [EMPLOYED] At what age do you think you will ACTUALLY retire? Plan Actual or younger (net) 0 0- (net) - - (net) - 0- (net) (net) + 0- (net) Never retire 0 Don t know + Base: n=, Q. [EMPLOYED] At what age do you PLAN to retire? Q. [EMPLOYED] At what age do you think you will ACTUALLY retire?

40 Age They Plan to Retire By Region Those in Canada, France and Australia plan to retire at an earlier age than their counterparts in other countries. Individuals in France and Italy are more likely to express an uncertainty about their planned retirement age. By Region [EMPLOYED / NOT WORKING] At what age do you PLAN to retire? [RETIRED] In the few years before you actually retired, at what age did you THINK you were going to retire? US CAN UK AUS GER FRA ITA NLD SWE JPN or younger (net) (net) - (net) 0- (net) (net) (net) Never retire 0 Don t know 0 Base: n= 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] At what age do you PLAN to retire? [RETIRED] In the few years before you actually retired, at what age did you THINK you were going to retire? 0

41 Age of Actual Retirement By Region Those in Canada and Australia are more likely to say that actual retirement age will be between the ages of and. Similar to expected retirement age, those in France and Italy are more likely to express uncertainty when they think they ll actually retire. By Region [EMPLOYED / NOT WORKING] At what age do you think you will ACTUALLY retire? [RETIRED] At what age did you ACTUALLY retire? US CAN UK AUS GER FRA ITA NLD SWE JPN or younger (net) 0 0- (net) - (net) 0 0- (net) 0 - (net) 0- (net) Never retire 0 Don t know Base: n= 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] At what age do you think you will ACTUALLY retire? [RETIRED] At what age did you ACTUALLY retire?

42 Age They Plan to Retire vs. Age They Think They Will Actually Retire In the US, cite a planned retirement age of 0 years or older. However, cite an expected retirement age of 0 years or older. Those residing in Canada reflect a significantly higher portion of individuals who said they were planning or had planned to retire by the age of, with citing their planned retirement age as -, and say that they actually did or expected to retire between the ages of -. Over one in ten in the UK and Australia express an uncertainty when it comes to their planned and actual retirement age. By Region US CAN UK AUS Planned Actual Planned Actual Planned Actual Planned Actual or younger (net) 0- (net) - (net) 0- (net) - (net) (net) + Never retire 0 0 Don t know Base: n= 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] At what age do you PLAN to retire? [RETIRED] In the few years before you actually retired, at what age did you THINK you were going to retire? Q.[EMPLOYED / NOT WORKING] At what age do you think you will ACTUALLY retire? [RETIRED] At what age did you ACTUALLY retire?

43 Age They Plan to Retire vs. Age They Think They Will Actually Retire While just over half of those in Germany say that they plan or had planned to retire by the age of or younger, say that they actually retired or expect that they will actually be able to retire by age or younger. Two out ten in France and three out of ten in Italy express uncertainty both about their planned and their expected actual retirement age. GER FRA ITA By Region Planned Actual Planned Actual Planned Actual or younger (net) 0- (net) - (net) 0- (net) (net) 0- (net) Never retire Don t know Base: n= 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] At what age do you PLAN to retire? [RETIRED] In the few years before you actually retired, at what age did you THINK you were going to retire? Q.[EMPLOYED / NOT WORKING] At what age do you think you will ACTUALLY retire? [RETIRED] At what age did you ACTUALLY retire?

44 Age They Plan to Retire vs. Age They Think They Will Actually Retire Those in the Netherlands were somewhat more likely to say that they had planned to retire before age than actually did or expected to retire before age. About a third of those in Sweden and just under half of those in Japan cite before as both their planned and actual retirement age. By Region NLD SWE JPN Planned Actual Planned Actual Planned Actual or younger (net) (net) - (net) 0 0- (net) 0 - (net) 0- (net) Never retire Don t know 0 Base n= 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] At what age do you PLAN to retire? [RETIRED] In the few years before you actually retired, at what age did you THINK you were going to retire? Q.[EMPLOYED / NOT WORKING] At what age do you think you will ACTUALLY retire? [RETIRED] At what age did you ACTUALLY retire?

45 Expected Source of Income in Retirement Globally, public pensions are viewed as the most significant portion of retirement income, followed by employer provided programs and earnings from continued employment. Nearly half () of those currently retired say that public pensions are a major source of their current retirement income. Total Sources of Income Major source Not a source Minor source Dk/Ref Retired By Employment Status --- Major Sources of Income --- Employed Not Working Public pension Employer-provided/occupational pension Earnings from employment 0 Workplace retirement savings program 0 Other personal savings/investments One time payment from your employer Sale or refinancing of your home 0 An inheritance Support from children/family n= n=, n= Base: n=,0 Q [EMPLOYED / NOT WORKING] For each, please tell me if you expect it to be a major, minor, or not a source of income for you when you retire. Will this be a [RETIRED] For each source, please tell me if it is a major, minor, or not a source of income for you. Is this a

46 Expected Source of Income in Retirement There is some differentiation among countries in their expected or actual major sources of retirement income. The majority of those residing in the US, UK and Australia view workplace retirement savings programs as a top contributor to retirement income. The majority of individuals surveyed in Italy, Germany, Sweden and the Netherlands count public pensions as the top contributor to retirement income. More so than their counterparts, those in France perceive employer-provided/ occupational pensions as a major source of retirement income. While a large portion of those in Canada share a similar view as those in France, many also cite other personal savings/investments as a major source for retirement income. By Region Major Sources of Income Employer-provided/occupational pension US CAN UK AUS GER FRA ITA NLD 0 SWE JPN Workplace retirement savings program One time payment from your employer 0 0 Other personal savings/investments 0 Sale or refinancing of your home 0 Earnings from employment 0 Support from children/family An inheritance 0 Public pension (Japan includes basic state pension and employee pension insurance) *Basic state pension in Japan = and Employee pension insurance in Japan = Base: n= 0 (weighted base for all countries) Q [EMPLOYED / NOT WORKING] For each, please tell me if you expect it to be a major, minor, or not a source of income for you when you retire. Will this be a [RETIRED] For each source, please tell me if it is a major, minor, or not a source of income for you. Is this a 0 *

47 Expected Source of Income in Retirement When ranked, the expected major sources of income in retirement vary by country. Almost all countries expect to rely on public pensions as one of their top three sources of income, followed by employer-provided/occupational pensions. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN Major Sources of Income Employer-provided/occupational pension Workplace retirement savings program One time payment from your employer Other personal savings/investments Sale or refinancing of your home Earnings from employment Support from children/family An inheritance Public pension (Japan includes basic state pension and employee pension insurance) Base: n= 0 (weighted base for all countries) Q [EMPLOYED / NOT WORKING] For each, please tell me if you expect it to be a major, minor, or not a source of income for you when you retire. Will this be a [RETIRED] For each source, please tell me if it is a major, minor, or not a source of income for you. Is this a

48 Source that Will Provide Largest Share of Income in Retirement Globally, public pensions are viewed as the major source of retirement income and are also expected to constitute the largest share of retirement income. Total Sources of Income Employer-provided/occupational pension Workplace retirement savings program One time payment from your employer Other personal savings/investments Sale or refinancing of your home Earnings from employment Support from children/family An inheritance Public pension* Major source Largest Share Base: n=,0 *Excludes Japan Q [EMPLOYED / NOT WORKING] For each, please tell me if you expect it to be a major, minor, or not a source of income for you when you retire. Will this be a [RETIRED] For each source, please tell me if it is a major, minor, or not a source of income for you. Is this a Q. [EMPLOYED / NOT WORKING] Which of the sources that I mentioned before do you think will provide you with the largest share of income in retirement? RETIRED] Which of the sources that I mentioned before provides you with the largest share of income in your retirement?

49 Confidence in Having Enough Money to Live for + Years After Retirement Globally, a large minority - four out of ten - are not confident that they will have enough money to live for years or more in retirement. Only are very confident that they will have enough money to live comfortable in retirement for years or more. Total Not at all confident Dk/Ref Very confident By Employment Status Very confident Somewhat confident Not too confident Not at all confident Dk/Ref 0 Not too confident Somewhat confident Retired Employed Not Working n= n=, n= Base: n=,0 Qa. [EMPLOYED / NOT WORKING] Considering the potential sources of retirement income you may have, how confident are you that you will have enough money to live comfortably in retirement for years or more? [RETIRED] How confident are you that you have enough money to live comfortably in retirement for years or more?

50 Confidence in Having Enough Money to Live for + Years After Retirement Confidence in having enough money to live for yrs+ after retirement varies across countries, with those countries with larger proportions of older persons tending to be the least optimistic. Those in Canada, the Netherlands and the US report the greatest optimism Half or more of respondents in Germany, France and Sweden say that they are not confident that they will have sufficient money to live comfortably in retirement for years or more. Those in Italy and Japan are the least confident, with saying that they are not too confident or not at all confident. By Region Very confident Somewhat confident Not too confident Not at all confident Dk/Ref US CAN UK AUS GER FRA ITA NLD SWE JPN Base: n=0 (weighted base all countries) Qa. [EMPLOYED / NOT WORKING] Considering the potential sources of retirement income you may have, how confident are you that you will have enough money to live comfortably in retirement for years or more? [RETIRED] How confident are you that you have enough money to live comfortably in retirement for years or more? 0

51 Confidence in Having Enough Money to Live for + Years After Retirement of those with household incomes of USD$0,000 or more say that they are very confident that they will have enough money to live comfortably +yrs into retirement, compared to less than half () of those with household incomes below USD$0,000. Almost six in ten () of those who are married feel confident about having enough money yrs into retirement compared to under half () of those who are not married. In addition, six out ten college-degree-holders say that they are very confident to somewhat confident that they will have sufficient money for a comfortable + year retirement compared to only four out of ten non-college-degree holders. There is little to no variation by age. By Key Demographics Income Age Marital Status Education 0 0 Very confident Somewhat confident Not too confident Not at all confident Dk/Ref 0 <$0K $0K or more 0 0 Ages 0- Ages - Married Not Married College Degree No College Degree n=, n=,0 n=, n=, n=,0 n=, Qa. [EMPLOYED / NOT WORKING] Considering the potential sources of retirement income you may have, how confident are you that you will have enough money to live comfortably in retirement for years or more? [RETIRED] How confident are you that you have enough money to live comfortably in retirement for years or more? n=,0 n=,

52 Demographic Trends, Retirement, and Aging Aged Dependency Ratios* (*Number of Persons Aged /00 Persons Aged -) US CAN UK AUS GER FRA ITA NLD SWE JPN Change Percent of Population Aged +, 00 and Change Source: U.S. Bureau of Census, International Data Base, //0

53 Planning and Saving for Retirement: Ahead of Schedule or Behind Schedule? Nearly equal percentages of respondents say they are ahead or on track () in planning and saving for their retirement as those that say that they are behind or don t know (). About half () of those not currently working say that they are a little to very much behind. Total Net Behind Very much behind schedule A little behind schedule Dk/Ref Very much ahead of schedule A little ahead of schedule 0 On track Net Ahead/ On Track By Employment Status Very much ahead A little ahead On track A little behind Very much behind Dk/Ref Base: n=,0 Q [EMPLOYED / NOT WORKING] Overall, when it comes to planning and saving for retirement, would you say that you are [RETIRED] Thinking about how you planned and saved for retirement, would you say that you were 0 Employed n=, Not Working n=

54 Planning and Saving for Retirement: Ahead of Schedule or Behind Schedule? Across countries, those living in Japan and Germany feel the most on schedule with their retirement planning, with and respectively saying that they are or were very much ahead to a little ahead in their planning and saving for retirement. This is of particular interest as those in Japan and Germany also have low confidence in having enough money to live comfortably for + years into retirement. Consistent with low confidence in their ability to have enough money to live comfortably for + years into retirement and large numbers not knowing when they will actually retire, just of those living in Italy say that they are a little ahead or very much ahead and say that they are uncertain about whether they are on schedule in their planning and saving. By Region Very much ahead A little ahead On track A little behind Very much behind Dk/Ref US CAN UK AUS GER FRA ITA NLD SWE JPN 0 Base: n=0 (weighted base for all countries) Q [EMPLOYED / NOT WORKING] Overall, when it comes to planning and saving for retirement, would you say that you are [RETIRED] Thinking about how you planned and saved for retirement, would you say that you were

55 Planning and Saving for Retirement: Ahead of Schedule or Behind Schedule? Nearly half () of all those with household incomes of USD$0,000 or less say that they are a little or very much behind, while of those with higher household incomes express a similar perspective. A full four in ten () non-college-degree-holders say that they are or were a little to very much behind in their planning and saving for retirement, while of those holding college degree share the same viewpoint. Those that are married are more likely to say that they are ahead or on track in their planning and saving for retirement, as are those ages to. By Key Demographics Income Age Marital Status 0 Education 0 Very much ahead A little ahead On track A little behind Very much behind Dk/Ref <$0K n=, $0K or more n=,0 Ages 0- Ages - Married 0 Not Married n=, n=,0 n=,0 n=, College Degree n=, No College Degree n=, Q [EMPLOYED / NOT WORKING] Overall, when it comes to planning and saving for retirement, would you say that you are [RETIRED] Thinking about how you planned and saved for retirement, would you say that you were

56 Reasons Why They Are Behind Schedule -Total Respondents Who are Behind Schedule- Overall, insufficient income is the top reason for being behind schedule on planning and saving for retirement, mentioned by about three in ten respondents. Educational expenses, raising a child or grandchild, and saving for retirement not a priority follow, mentioned by slightly less than one in five. Total Reasons Behind Schedule Mentions or greater Not enough income to allow me to save Education expenses Raising a child or grandchild Saving for retirement isn't/wasn't a priority Mortgages for your home Unemployment Did not realize how much I needed to save Health or medical expenses Spent money on shorter-term things Expenses of remodeling a home Transportation or car expenses By Employment Status Retired Employed Not Working n= n=, n=0 Base: n=, Q0. [EMPLOYED / NOT WORKING] What factors, if any, have been keeping you behind schedule in saving for retirement? Anything else? [RETIRED] What factors, if any, kept you behind schedule in saving for retirement? Anything else?

57 Reasons Why They Are Behind Schedule -Total Respondents Who are Behind Schedule- The top reason across all remaining countries is insufficient income, with the exception of Japan where the top reason for getting behind schedule is education expenses, Those in Japan, Sweden and France are more likely than other countries to say that saving for retirement was not a priority. In Australia, individuals are more likely to cite home mortgages, the raising of a child or grandchild and not realizing how much they needed to save as reasons for being behind schedule. By Region Reasons Behind Schedule Mentions or greater US CAN UK AUS GER FRA ITA NLD SWE JPN Not enough income to allow me to save Education expenses Raising a child or grandchild Saving for retirement isn't/wasn't a priority Unemployment Mortgages for your home Did not realize how much I needed to save 0 Health or medical expenses Spent money on shorter-term things Expenses of remodeling a home Transportation or car expenses Expenses of caring for family members/relatives Credit card debts 0 Base: n=, Q0. [EMPLOYED / NOT WORKING] What factors, if any, have been keeping you behind schedule in saving for retirement? Anything else? [RETIRED] What factors, if any, kept you behind schedule in saving for retirement? Anything else?

58 Reasons Why They Are Behind Schedule When ranked, the top reason why they are behind schedule is not having enough income to allow for savings. Raising a child or grandchild and being unemployed also contribute n=0 n= n= n= n= n= n=0 n= n= n= to being behind schedule. By Region Reasons Behind Schedule Mentions or greater Not enough Income to allow me to save Education expenses Raising a child or grandchild Saving for retirement isn't/wasn't a priority Unemployment Mortgages for your home Did not realize how much I needed to save Health or medical expenses Spent money on shorter-term things Expenses of remodeling a home Transportation or car expenses Expenses of caring for family members/relatives Credit card debts US CAN UK AUS GER Base: n=, Q0. [EMPLOYED / NOT WORKING] What factors, if any, have been keeping you behind schedule in saving for retirement? Anything else? [RETIRED] What factors, if any, kept you behind schedule in saving for retirement? Anything else? FRA ITA NLD SWE JPN

59 Reasons Why They Are Behind Schedule There are only slight variations across key demographic groups for reasons that they are behind on their retirement planning. By Key Demographics Income Age Marital Status Educational Reasons Behind Schedule Mentions or greater <$0K $0K or more 0- - Married Not Married College Degree No College Degree Not enough Income to allow me to save 0 0 Education expenses Raising a child or grandchild Saving for retirement isn't/wasn't a priority 0 Unemployment 0 0 Mortgages for your home Did not realize how much I needed to save 0 0 Health or medical expenses Spent money on shorter-term things Expenses of remodeling a home Transportation or car expenses n= n= n= n= n= n=0 n= n=, Q0. [EMPLOYED / NOT WORKING] What factors, if any, have been keeping you behind schedule in saving for retirement? Anything else? [RETIRED] What factors, if any, kept you behind schedule in saving for retirement? Anything else?

60 Taking Money Out of Their Retirement Savings The vast majority say that they have not had to take a loan against their retirement savings or make a premature withdrawal from their retirement savings. Individuals in Canada and United States are more likely to have made a premature withdrawal when compared to the other countries. Total Dk/Ref Yes, have taken a loan against retirement savings US CAN Yes, have taken a loan against retirement savings Yes, have made a premature withdrawal from Not Made retirement savings Withdrawal 0 0 Not made a withdrawal 0 Yes, have made a premature withdrawal from retirement savings Made Withdrawals UK AUS GER FRA ITA NLD SWE 0 JPN Base: n=,0 Q. Have you had to either [take a loan against your retirement savings / make a premature withdrawal from your retirement savings] for any reason other than funding your retirement? 0

61 Reasons for Taking Money Out of Their Retirement Savings Across all countries, the top reasons for taking money out of their retirement savings are a primary home purchase, expenses for home remodeling and to pay for everyday expenses. Global By Employment Status Reasons for Taking a Loan or Money Out Mentions or greater A primary home purchase To pay for everyday living expenses Expenses of remodeling a home Education expenses Health or medical expenses A car, truck, van or other vehicle purchase/expense Money for an emergency Raising a child or grandchild Credit card debts Expenses of caring for older family members/relatives Base: n=0 Q. For what purpose or purposes did you take a loan or money out of your retirement savings? Retired Employed Not Working n= n= n=

62 Health Issues

63 General State of Health Over 0 consider themselves to be in at least good health with nearly half rating their health as excellent or very good. Those who are employed claim to be the healthiest while those who are retired or not working are more likely to be in fair or poor health. Total By Employment Status Fair Poor Excellent Good Very good Excellent Very good Good Fair Poor Base: n=,0 Q. In general, would you say your health is. Retired Employed Not Working n= n=, (n=)

64 General State of Health Perceived health varies across the countries. Respondents in Australia rate themselves healthier than do respondents in other countries. The Japanese consider themselves to be the least healthy. Italy has the lowest top box endorsement and the most reporting that they are only in good health. By Region Excellent Very good Good Fair Poor US CAN UK AUS GER FRA ITA NLD SWE JPN Weighted base: n=0 (all countries) Q. In general, would you say your health is.

65 General State of Health One-quarter of those aged - believe their health to be in fair or poor condition, compared to just of 0- year olds. Those with income $0K or more tend to feel they are in better health compared to those with lower income. By Key Demographics Income Age Marital Status Education 0 Excellent Very good Good Fair Poor 0 0 $0K Not College No College or Ages Ages <$0K Married more 0- - Married Degree Degree n=, n=,0 n=, n=,0 n=,0 n=, n=, n=, Q. In general, would you say your health is.

66 Total Confidence in Factors Related to Health Most respondents are at least somewhat confident that they will have good health throughout retirement and be able to pay for medical expenses and prescriptions. There is less confidence, however, in their ability to pay for long term care. Those who are either retired or employed enjoy more confidence in these factors than those who are currently not working. Factors Related to Health Very confident Somewhat confident Dk/Ref Not too confident Not at all confident Income Very/Somewhat Confident Not Retired Employed Working Having access to quality health care in your retirement years Being able to pay for medical expenses such as doctor visits in your retirement years 0 Being able to pay for prescription drugs in your retirement years Being able to pay for long term care, such as nursing home or home health care, should you need it during your retirement 0 Having good health throughout your retirement Base: n=,0 Q. How confident are you about the following factors related to health? n= n=, n=

67 Confidence in Factors Related to Health Across most countries, the least amount of confidence is in the ability to pay for long term care. Relative to the other countries, Germany and Italy have the least confidence across all of the health and health care related issues. By Region Top Box Confidence (Very/Somewhat Confident) US CAN UK AUS GER FRA ITA NLD SWE JPN Having access to quality health care in your retirement years 0 Being able to pay for medical expenses such as doctor visits in your retirement years 0 Being able to pay for prescription drugs in your retirement years Being able to pay for long term care, such as nursing home or home health care, should you need it during your retirement Having good health throughout your retirement 0 Weighted base: n=0 (all countries) Q. How confident are you about the following factors related to health?

68 Confidence in Factors Related to Health Those with a greater income tend to feel more confident about their retirement years. They feel they will be able to afford medical expenses, prescription drugs and have good health. The same is also true for those who have a college degree or its equivalent. There is little differentiation by age or marital status. By Key Demographics Income Age Marital Status Educational Top Box Confidence (Very/Somewhat Confident) <$0K $0K or more 0- - Married Not Married College Degree No College Degree Having access to quality health care in your retirement years 0 0 Being able to pay for medical expenses such as doctor visits in your retirement years 0 Being able to pay for prescription drugs in your retirement years Being able to pay for long term care, such as nursing home or home health care, should you need it during your retirement Having good health throughout your retirement n=, n=,0 n=, n=,0 n=,0 n=, n=, n=, Q. How confident are you about the following factors related to health?

69 Who Will Pay Their Health Care Costs in Retirement? Government sponsored health care is perceived as the source that will contribute the most to health care costs during retirement, followed closely by private health insurance and personal savings/income. Overall, respondents are expecting to rely the least on their family and retiree health benefits from their employer. Total Government sponsored health care All Most Some None DK You indicated or more items will pay most or some of your health care, which will pay the most? Your own savings or income 0 Your family, or those taking care of you 0 Private health insurance Retiree heath benefits from your employer* 0 0 Base: n=,0 * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

70 Who Will Pay Their Health Care Costs in Retirement? Retired persons rely most on government sponsored health care and personal savings or income. Globally, those currently employed or not working are expecting their health care costs to be funded by the same sources. By Employment Status Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? Retired Employed Not Working Qa Qa Qa All Most Some None Dk/ Ref The Most All Most Some None Dk/ Ref The Most All Most Some None Dk/ Ref The Most Government sponsored health care 0 0 Your own savings or income Your family, or those taking care of you 0 Private health insurance 0 Retiree health benefits from your employer* n= n=, n= * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? 0

71 Who Will Pay Their Health Care Costs in Retirement? Those in the US have low expectations for government sponsored health care programs to cover all or most of their health care costs in retirement. Respondents in the US plan to rely most on private health insurance, retiree health benefits from their employer and their own savings or income. Canadians and British expect to depend on government sponsored health care and their own savings or income. Australians expect to depend on private health insurance the most. By Region Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? US CAN UK AUS Government sponsored health care All Most 0 Some None DK/ Ref 0 Qa Qa Qa Qa The DK/ The DK/ The DK/ The Most All Most Some None Ref Most All Most Some None Ref Most All Most Some None Ref Most 0 Your own savings or income Your family, or those taking care of you 0 0 Private health insurance Retiree health benefits from your employer* 0 Weighted base: n=0 (all countries) * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

72 Who Will Pay Their Health Care Costs in Retirement? Half of all Germans expect all or most of their health care costs in retirement to be taken care of by family, personal savings/income and the government. Those living in France will rely on the government and private health insurance, while 0 of Italians expect the government to cover over all or most of their health care costs in retirement. By Region Continued Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? GER FRA ITA Qa Qa Qa Government sponsored health care All Most Some 0 None Dk/ Ref The Most All Most Some None Dk/ Ref The Most All Most Some None Dk/ Ref The Most Your own savings or income Your family, or those taking care of you Private health insurance Retiree health benefits from your employer* Base: n=0 (all countries) * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

73 Who Will Pay Their Health Care Costs in Retirement? Those living in Netherlands and Japan will look most often to private health insurance to cover health care in retirement, followed by using their personal savings/income. The Swedish expect little aid from family and private health insurance. By Region Continued Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? NLD SWE JPN Government sponsored health care All Most Some None Dk/ Ref Qa The Most All Most 0 Some None Dk/ Ref Qa The Most All Most Some None 0 Dk/ Ref Qa The Most Your own savings or income 0 0 Your family, or those taking care of you 0 Private health insurance 0 0 Retiree health benefits from your employer* Base: n=0 (all countries) * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

74 Who Will Pay Their Health Care Costs in Retirement? There is some differentiation between the income groups. Those who make less than $0K expect to rely most on government to cover their health care costs while their counterparts who make $0K or more expect to rely equally on government and private health insurance. By Key Demographics Income Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? Government sponsored health care Your own savings or income Your family, or those taking care of you All Most <$0K Some None DK/ Ref Income Qa The Most 0 All $0K or more Most Some None 0 DK/ Ref Qa The Most Private health insurance 0 0 Retiree health benefits from your employer* 0 0 n=, n=,0 * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

75 Who Will Pay Their Health Care Costs in Retirement? Those ages to are more likely to say that their families and, private health insurance and retiree health benefits from their employer will pay none of their health care costs in retirement. By Key Demographics Age Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? Government sponsored health care Your own savings or income Your family, or those taking care of you All Most 0- Some None DK/ Ref Income Qa The Most All - Most Some None 0 DK/ Ref Qa The Most 0 Private health insurance 0 Retiree health benefits from your employer* n=, 0 n=,0 0 * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most?

76 Who Will Pay Their Health Care Costs in Retirement? Those with no college degree (or it s equivalent) are more likely to look to the government to pay health care costs in retirement. There is little differentiation between those married vs. not married. By Key Q. Do you think the following will pay none, some, most or all of your health care costs in retirement? Demographics QA. You indicated or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? Continued Government sponsored health care Your own savings or income Your family, or those taking care of you Private health insurance Retiree health benefits from your employer* All Most Married Some 0 None Marital Status DK/ Ref 0 The Most All Not Married Most Some None 0 DK/ Ref 0 The Most All College Degree Most Some None 0 0 DK/ Ref 0 Educational The Most No College Degree Qa Qa Qa Qa All Most Some None n=,0 n= n=, n=, * US only Q. [EMPLOYED / NOT WORKING] Do you think the following will pay none, some, most or all of your health care costs in retirement? [RETIRED] Does the following pay none, some, most or all of your health care costs in retirement? QA. [EMPLOYED / NOT WORKING] You indicated that or more items will pay some or most of your health care costs in retirement. Which will pay the most? [RETIRED] You indicated that or more items pay some or most of your health care costs in retirement. Which one do you think pays the most? 0 DK/ Ref 0 The Most

77 Confidence in Government s Ability to Provide Health Care Benefits to Current and Future Retirees Trust in the government s ability to provide health care benefits to either current or future retirees is relatively low. Most respondents fall in the mid to low trust level with lower trust levels with regard to providing benefits for future retirees. Total Government s ability to provide health care benefits total trust in government absolutely no trust 0 0 Mean Mean. 0 Govt. Ability to Provide for Current Retirees Govt. Ability to Provide for Future Retirees Base: n=,0 QB. How much trust do you have in your government s ability to provide health care benefits to CURRENT retirees? QC. How much trust do you have in your government's ability to provide health care benefits to FUTURE retirees? Please use a scale of 0 to 0 where 0 means you have absolutely no trust and 0 means you have total trust in your government.

78 Confidence in Government s Ability to Provide Health Care Benefits to Current and Future Retirees There are lower trust levels with regard to the government s ability to provide health care benefits to future retirees. This is fairly consistent across countries. Those living in Germany are the most pessimistic about the government s ability to provide health care benefits to retirees with saying that they have absolutely no trust in the government s ability to provide health benefits to either current or future retirees. Those in Canada are the most optimistic about the government s ability to provide health care benefits to current and future retirees. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN Curr Future Curr Future Curr Future Curr Future Curr Future Curr Future Curr Future Curr Future Curr Future Curr Future total trust in government absolutely no trust Top Rate 0 Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate 0 Mean Base: n=0 (all countries) QB. How much trust do you have in your government s ability to provide health care benefits to CURRENT retirees? QC. How much trust do you have in your government's ability to provide health care benefits to FUTURE retirees? Please use a scale of 0 to 0 where 0 means you have absolutely no trust and 0 means you have total trust in your government

79 Work and Continued Employment

80 Expectations for Work in Retirement Though overall expect to stop working completely during retirement, the majority expect to do some level of work when they retire whether this be working full-time, working part-time or alternating between periods of work and leisure. Total Stop working completely Work part-time Serve as volunteer Alternate between periods of work and leisure Taking educational courses or workshops Work full-time in the same type of work Work full-time but in a different type of work Base: n=,0 Q. [EMPLOYED /NOT WORKING] Which ONE of the following do you see yourself doing in your life after retirement? [RETIRED] Before you actually retired, which ONE of the following did you see yourself doing in your life after retirement? 0

81 Expectations for Work in Retirement Overall, three in ten of those currently employed and those not working expect to stop working completely when they retire. This is also true of four in ten who have already retired. Those currently employed are also likely to expect to alternate between periods of work and leisure. By Employment Status n= n= n= Retired Employed Not working Stop working completely Serve as a volunteer Work part-time Alternate between periods of work and leisure Taking educational courses or workshops Work full-time in the same type of work Work full-time but in a different type of work Q. [EMPLOYED /NOT WORKING] Which ONE of the following do you see yourself doing in your life after retirement? [RETIRED] Before you actually retired, which ONE of the following did you see yourself doing in your life after retirement?

82 Expectations for Work in Retirement More Americans expect to be working part-time after retirement than any other country, which is consistent with the expectation that personal savings/income will pay for their health care costs. Four in ten of those living in France expect to stop working completely and serve as a volunteer while one-half of the Italians mostly expect to stop working completely. One in ten Japanese expect to continue to work full-time in the same work, more than any other country. of those in Italy do not know what they are going to do after their retirement. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN Stop working completely 0 Work full-time in the same type of work 0 Work full-time but in a different type of work Work part-time 0 0 Alternate between periods of work and leisure 0 Serve as a volunteer 0 Taking educational courses or workshops 0 Don t know Base: n=0 (all countries) Q. [EMPLOYED /NOT WORKING] Which ONE of the following do you see yourself doing in your life after retirement? [RETIRED] Before you actually retired, which ONE of the following did you see yourself doing in your life after retirement?

83 Expectations for Work in Retirement The most important reasons for working after retirement vary. Almost half say that wanting to stay involved and connected is a very important reason, closely followed by enjoy working. Somewhat less popular reasons include money, followed by wanting to learn new things. Total Very important Somewhat important Not too important Not at all important Dk/Ref Reasons to Work After Retirement Global Money Enjoy working 0 Want to stay involved / Be connected with others Want to learn new things n=, Q. [EMPLOYED / NOT WORKING] Why do you expect to work for pay when you retire? Please tell me if each the following factors is important or not important? [RETIRED] Before you actually retired, why did you expect to work for pay when you retired? Please tell me if each of the following factors was important or not important?

84 Expectations for Work in Retirement Reasons for deciding to work after retirement are of almost equal importance to retirees, those employed and those not working. However, the most important reasons to all are wanting to stay involved and be connected with others and enjoy working. By Employment Status Very important Somewhat important Not too important Not at all important Dk/Ref Reasons to Work After Retirement Retired Employed Not Working Money 0 Enjoy working 0 0 Wanting to stay involved / Be connected with others Wanting to learn new things n= n=, n= Q. [EMPLOYED / NOT WORKING] Why do you expect to work for pay when you retire? Please tell me if each the following factors is important or not important? [RETIRED] Before you actually retired, why did you expect to work for pay when you retired? Please tell me if each of the following factors was important or not important?

85 Expectations for Work in Retirement Those living in the US, Canada, Australia, UK, Italy, Sweden, Netherlands and Japan say that they expect to or expected to work for pay during retirement because they enjoy it, they want to stay involved and the money is important. Compared to the other countries, those in France and Germany are less likely to say any of these reasons for working for pay during retirement are important. By Region Top Box Importance (Very/Somewhat Important) US CAN UK AUS GER FRA ITA SWE NLD JPN Money 0 Enjoy working 0 Wanting to stay involved / Be connected with others 0 Wanting to learn new things 0 n=0 n= n=0 n= n= n= n= n= n= n= Base:, Q. [EMPLOYED / NOT WORKING] Why do you expect to work for pay when you retire? Please tell me if each the following factors is important or not important? [RETIRED] Before you actually retired, why did you expect to work for pay when you retired? Please tell me if each of the following factors was important or not important?

86 Expectations for Work in Retirement Those who are married and those with incomes of $0K are more likely to give wanting to stay involved/be connected with others as a reason to work for pay when they retire. There is little differentiation by age group or education in terms of the importance of reasons why someone would continue to work in retirement. By Key Demographics Income Age Marital Status Educational Top Box Importance (Very/Somewhat Important) <$0K $0K or more 0- - Married Not Married College Degree No College Degree Money 0 Enjoy working Wanting to stay involved / Be connected with others 0 Wanting to learn new things 0 n= n= n=0 n= n=,00 n=0 n=0 n=, Q. [EMPLOYED / NOT WORKING] Why do you expect to work for pay when you retire? Please tell me if each the following factors is important or not important? [RETIRED] Before you actually retired, why did you expect to work for pay when you retired? Please tell me if each of the following factors was important or not important?

87 Role of Government

88 Total Confidence in Government s Ability to Pay Public Pensions to Current and Future Retirees Considering the government s ability to keep paying public pension benefits for current and future retirees, respondents have slightly greater trust in the government s ability to pay current benefits, although both trust levels are limited. The majority fall at the mid-to-high end of the trust scale, as far as trust in the government s ability to keep paying benefits of current retires. Looking to the future, confidence in the government ability to pay public pensions decreases to the mid-to-low trust level. Government s ability to keep paying public pension benefits total trust in government absolutely no trust 0 0 Mean Mean. 0 Govt s Ability to Pay Pensions For Current Retirees Govt s Ability to Pay Pensions for Future Retirees Base: n=,0 Q. How much trust do you have in your government s ability to keep paying public pension benefits to CURRENT retirees? Q0. How much trust do you have in your government s ability to pay public pension benefits to FUTURE retirees? Please use a scale of 0 to 0 where 0 means you have absolutely no trust and 0 means you have total trust in your government.

89 Confidence in Government s Ability to Pay Public Pensions to Current and Future Retirees All respondents reflect low levels of trust in the government s ability to pay benefits to future retirees. Respondents in Canada and Sweden have the highest trust in the government s ability to pay the benefits of current retirees. Canada, Sweden and the UK demonstrate the highest trust in the government s ability to pay future retirees. Two in ten in Germany say they have absolutely no trust in the government s ability to keep paying public pension benefits to current retirees, and a quarter say they have absolutely no trust in the government s ability to keep paying public pension benefits to future retirees. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN total trust in government absolutely no trust Curr Top Box Rate 0 Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate 0 Mean. Future. Curr 0. Future. Base: n=0 (weighted base per country) Q. How much trust do you have in your government s ability to keep paying public pension benefits to CURRENT retirees? Q0. How much trust do you have in your government s ability to pay public pension benefits to FUTURE retirees? Please use a scale of 0 to 0 where 0 means you have absolutely no trust and 0 means you have total trust in your government. Curr. Future 0 0. Curr. Future. Curr 0. Future.0 Curr. Future. Curr 0 0. Future 0. Curr 0. Future 0 0. Curr 0. Future 0. Curr Future 0.

90 Level of Comfort Offered by Public Pensions More than three-quarters of respondents believe that the amount of pension and benefits paid by the government will not be sufficient for them to live comfortably. The same lack of confidence is apparent regardless of employment status. Total By Employment Status Not at all comfortably Dk/Ref Very comfortably Very comfortably Comfortably Not very comfortably Not at all comfortably Comfortably DK/Ref Not very comfortably Base: n=,0 Q. Do you believe that in [COUNTRY], the average retiree s pension and benefits paid by the government, excluding personal sources of retirement income like savings or wages, are sufficient for the average retiree to live? Retired n= Employed n=, Not Working n= 0

91 Level of Comfort Offered by Public Pensions Across countries, nearly all respondents believe that the government pension and benefits will not be enough to live comfortably. Those in the Netherlands are the most confident relative to the other countries that the government s pension and benefits will be sufficient for the average retiree to live, followed by Sweden and Canada. A third of those in the US. and the UK, and four in ten in Germany and Japan, say that the average retiree would live not at all comfortably on just pension and benefits paid by the government. By Region Very comfortably Comfortably Not very comfortably 0 Not at all comfortably DK/Ref 0 US CAN UK AUS GER FRA ITA NLD SWE JPN Base: n=0 (weighted base per country) Q. Do you believe that in [COUNTRY], the average retiree s pension and benefits paid by the government, excluding personal sources of retirement income like savings or wages, are sufficient for the average retiree to live?

92 Level of Comfort Offered by Public Pensions There is no differentiation between the key demographic groups regarding views on how comfortably the average retiree can live if their income were only to include the pension and benefits paid by the government. By Key Demographics Very comfortably Income Age Marital Status Education Comfortably Not very comfortably Not at all comfortably DK/Ref <$0K n=, $0K or more n=,0 Ages 0- n=, Ages - n=,0 Married n=,0 Not Married n=, College Degree n=, No College Degree n=, Q. Do you believe that in [COUNTRY], the average retiree s pension and benefits paid by the government, excluding personal sources of retirement income like savings or wages, are sufficient for the average retiree to live?

93 Who Is Responsible for Supporting Those Who Are Retired? Most believe that Government programs, individuals themselves, and employer-based programs should all have at least some responsibility for supporting those who are retired. Government programs are most often seen as having the primary responsibility, followed by individuals themselves and employer-based programs. Global Individuals themselves Primary responsibility Some responsibility No responsibility DK/Ref Government programs Employer-based programs Base: n=,0 Q. Who do you think should be responsible for supporting those who are retired? For each of the following, please tell me if it should have primary responsibility, some responsibility, or no responsibility?

94 Who Is Responsible for Supporting Those Who Are Retired? There is little variation by employment status on views of who should support retirees. By Employment Status Primary responsibility Some responsibility No responsibility Dk/Ref Responsible for Support Retired Employed Not Working Individuals Themselves 0 Government Programs 0 Employer-based Programs n= n=, n= Q. Who do you think should be responsible for supporting those who are retired? For each of the following, please tell me if it should have primary responsibility, some responsibility, or no responsibility?

95 Who Is Responsible for Supporting Those Who Are Retired? Regardless of country, respondents believe that individuals themselves, government and employerbased programs should share the responsibility of supporting those who are retired. However, approximately one-third of the French and Italians do not believe that the individuals themselves should be responsible for contributing to their own support. Government programs are seen as a major source of retirement income for many countries but not for the US, Canada and Australia. By Region Responsible for Support Individuals Themselves Primary Some No Dk/Ref US -- CAN -- AUS UK GER FRA ITA 0 SWE NLD JPN 0 Government Programs Primary Some No Dk/Ref Employer-based Programs Primary Some No Dk/Ref Base: n=0 (weighted base per country) Q. Who do you think should be responsible for supporting those who are retired? For each of the following, please tell me if it should have primary responsibility, some responsibility, or no responsibility? 0 0

96 Trade-Offs Globally, raising taxes among higher paid workers is seen to be the most acceptable choice for the government to make in order to maintain public pension funds. More than four in ten say that raising the retirement age required to qualify for public pensions is completely unacceptable, making it the most unacceptable of the options presented for consideration. A third say that raising taxes for all those in the workforce is completely unacceptable, making it the second-most unpopular choice Total Completely acceptable Somewhat acceptable Dk/Ref Somewhat unacceptable Completely unacceptable Raising taxes among higher paid workers Raising taxes for all those in the workforce Raising the retirement age required to qualify for public pensions Increasing retirement benefits at a lower rate than in the past 0 Increasing the size of the labor force by allowing more immigrants into the country to work Shifting to private savings accounts Base: n=,0 Q.In the future, as the number of elderly people increases, the government may need to make difficult choices in order to maintain public pension funds. For each of the following choices, please tell me if it is acceptable or not acceptable to you.

97 Trade-Offs Germany does not find raising the taxes among higher paid workers to be as acceptable as other countries do. France and Italy are least open to raising taxes for all those in the workforce and would prefer to raise taxes among the higher paid. Additionally, Italy and Japan are least accepting of increasing retirement benefits at a lower rate than in the past. Individuals in the United States are less open to increasing the size of the labor force by allowing more immigrants into the country to work as are those in the UK and France. By Region Top Box Acceptance (Completely/Somewhat Acceptable) US CAN AUS UK GER FRA ITA SWE NLD JPN Raising taxes among higher paid workers Raising taxes for all those in the workforce 0 0 Increasing the size of the labor force by allowing more immigrants into the country to work 0 0 Raising the retirement age required to qualify for public pensions 0 Increasing retirement benefits at a lower rate than in the past 0 Shifting to private savings accounts Base: n=0 (weighted base per country) Q. In the future, as the number of elderly people increases, the government may need to make difficult choices in order to maintain public pension funds. For each of the following choices, please tell me if it is acceptable or not acceptable to you.

98 Trade-Offs by Education Those with college degrees are more likely than those without to support raising taxes among everyone in the workforce, allowing more immigrants into the country to work and raising the required retirement age, and shifting to private accounts. By Education Top Box Acceptance (Completely/Somewhat Acceptable) Raising taxes among higher paid workers Raising taxes for all those in the workforce Increasing the size of the labor force by allowing more immigrants into the country to work Raising the retirement age required to qualify for public pensions Increasing retirement benefits at a lower rate than in the past College Degree 0 Educational No College Degree 0 Shifting to private savings accounts n=, n=, Q. In the future, as the number of elderly people increases, the government may need to make difficult choices in order to maintain public pension funds. For each of the following choices, please tell me if it is acceptable or not acceptable to you.

99 Trade-Offs Those with household incomes of $0,000 or more and those with college degrees are more likely to say that shifting to private savings accounts is acceptable. Those with college degrees are more likely than those without to support raising taxes among everyone in the workforce, allowing more immigrants into the country to work and raising the required retirement age. There is little to no variation by age or marital status. By Key Demographics (continued) Income Age Marital Status Educational Top Box Acceptance (Completely/Somewhat Acceptable) <$0K $0K or more 0- - Married Not Married College Degree No College Degree Raising taxes among higher paid workers 0 Raising taxes for all those in the workforce Raising the retirement age required to qualify for public pensions 0 0 Increasing retirement benefits at a lower rate than in the past 0 Increasing the size of the labor force by allowing more immigrants into the country to work Shifting to private savings accounts 0 n=, n=,0 n=, n=,0 n=,0 n=, n=, n=, Q. In the future, as the number of elderly people increases, the government may need to make difficult choices in order to maintain public pension funds. For each of the following choices, please tell me if it is acceptable or not acceptable to you.

100 00 Current Concerns

101 Current Concerns Multiple concerns with regard to retirement are noted. Staying mentally active is a fundamental concern among fully half of respondents, but this is followed closely by having enough money to meet daily expenses, being able to get affordable high quality health and long term care, and staying physically fit/maintaining a healthy diet, making sure pensions and savings are save and secure, and maintaining strong relationships with friends and family. Of least concern is finding work again after leaving the workforce. Global Staying mentally active Getting affordable, high quality health care Having enough money to meet daily expenses Staying physically fit/maintaining a healthy diet Making sure pension/savings are safe/secure Having high quality long-term care Having a secure place to live Maintaining strong relationships w/ friends & family Saving for the future Providing care for a parent/relative Having adequate info on health care options Having a public pension as a base for income Having someone to take care of you Facing age discrimination in employment Finding work again once after leaving workforce Top Box 0 Base: n=,0 Q. I am going to read you a list of concerns that have been expressed by other people. For each item I read, please rate your own level of concern when you think about your retirement, using a scale of 0-0 where 0 means you are "not at all concerned" and 0 means you are "extremely concerned." 0

102 Current Concerns Top concerns among all respondents are similar regardless of employment status, although those not currently working are especially concerned about meeting daily expenses. By Employment Status Concerns Retired Top Box Mean Employed Top Box Providing care for a parent/relative. Having adequate info on health care options.0 Having a public pension as a base for. income Getting affordable, high quality health care. Staying physically fit/maintaining healthy. diet Staying mentally active. Maintaining strong relationships. Having high quality long-term care. Make sure pension/savings are. safe/secure Having enough money to meet daily. expenses Facing age discrimination in employment. Saving for the future. Finding work again after leaving workforce. Having a secure place to live. Having someone to take care of you. Mean Not Working Top Box n= n=, n= 0 Mean Q. I am going to read you a list of concerns that have been expressed by other people. For each item I read, please rate your own level of concern when you think about your retirement, using a scale of 0-0 where 0 means you are "not at all concerned" and 0 means you are "extremely concerned."

103 Current Concerns Those living in the United States, Canada, Australia, UK and France seem to have the highest level of concern overall about factors related to retirement. By Region US CAN UK AUS GER FRA ITA NLD SWE JPN TB TB TB TB TB TB TB TB TB TB Provide care for a parent/relative Have adequate info on healthcare options Have public pension as base for income Get affordable, high quality healthcare Stay physically fit/maintain healthy diet Stay mentally active 0 Maintain strong relationships Have high quality long-term care Ensure pension/savings are safe/secure Have enough money for daily expenses Facing age discrimination in employment Saving for the future Find work again after leaving workforce 0 0 Have a secure place to live 0 Have someone to take care of you 0 Base: n=0 (weighted base per country) Q. I am going to read you a list of concerns that have been expressed by other people. For each item I read, please rate your own level of concern when you think about your retirement, using a scale of 0-0 where 0 means you are "not at all concerned" and 0 means you are "extremely concerned."

104 0 Other Concerns Individuals with household incomes below $0,000 are more likely to say that they are concerned about having a public pension as a base for retirement income than are those with higher household incomes. Those without college degrees are more concerned about many issues during their retirement than are college degree holders. There is little to no variation by age or marital status. Income Age Marital Status $0K <$0K or more 0- - Married Not Married By Key Demographics Provide care for a parent/relative Have adequate info on healthcare options Have public pension as base for income Get affordable, high quality healthcare Stay physically fit/maintain healthy diet Stay mentally active Maintain strong relationships Have high quality long-term care Ensure pension/savings are safe/secure Have enough money for daily expenses Facing age discrimination in employment Saving for the future Find work again after leaving workforce Have a secure place to live Have someone to take care of you TB TB 0 Q. I am going to read you a list of concerns that have been expressed by other people. For each item I read, please rate your own level of concern when you think about your retirement, using a scale of 0-0 where 0 means you are "not at all concerned" and 0 means you are "extremely concerned." TB 0 0 TB 0 0 TB 0 0 TB 0 0 Educational College No College Degree Degree TB 0 0 TB n=, n=,0 n=, n=,0 n=,0 n=, n=, n=,

105 Informed About Retirement vs. Thinking About Retirement Among countries surveyed, those in the United States, Canada and Germany are among those that are both thinking more about their retirement and are feeling more informed about planning for a happy and successful retirement. High Informed, But Not Thinking about Retirement Informed, And Thinking about Retirement Canada United States Mean Score - Informed About Retirement Italy Netherlands Australia UK Germany Sweden France Japan Low Not Informed, And Not Thinking about Retirement Not Informed, But Thinking about Retirement Low Mean Score Thinking About Retirement High Total respondents = 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] Overall, how much have you thought about your retirement? Have you given it [RETIRED] Overall, how much did you think about retirement before you actually retired? Did you give it Q.On a scale of 0-0, where 0 means not at all informed and 0 means extremely well informed, [EMPLOYED / NOT WORKING] how informed would you say you are about the things you need for a happy and successful retirement? [RETIRED] how informed did you feel, before you actually retired, regarding the things you needed for a happy and successful retirement? 0

106 Informed About Retirement vs. Optimism About Retirement Among countries surveyed, those in the United States, Canada, the Netherlands and Australia are among those that are feeling more optimistic about their retirement and are feeling more informed about planning for a happy and successful retirement. High Informed, But Not Optimistic about Retirement Informed, And Optimistic about Retirement United States Canada Germany Netherlands Australia Mean Score - Informed Italy UK Sweden France Japan Low Low Not Informed, And Not Optimistic about Retirement Mean Score Optimism About Retirement Not Informed, But Optimistic about Retirement Total respondents = 0 (weighted base per country) Q.[EMPLOYED / NOT WORKING] Overall, how much have you thought about your retirement? Have you given it [RETIRED] Overall, how much did you think about retirement before you actually retired? Did you give it Q. In general, thinking about your retirement, are you very optimistic, somewhat optimistic, somewhat pessimistic or very pessimistic High 0

107 Results on Similar Issues from the 00 AARP International Opinion Leader Study on Global Aging In 00, Wirthlin implemented the AARP International Opinion Leader Study on Global Aging in which a total of opinion leaders in seven countries across four audiences were interviewed on various topics on aging. 0

108 Average Retiree s Quality of Life Based on Pensions and Benefits, Excluding Personal Sources of Income (Total) AVERAGE RETIREE S PENSIONS AND BENEFITS NOT PERCEIVED TO BE SUFFICIENT. THE MAJORITY OF G- LEADERS DO NOT BELIEVE THAT THE AVERAGE RETIREE IS ABLE TO LIVE COMFORTABLY ON PENSIONS AND BENEFITS, EXCLUDING PERSONAL SOURCES OF INCOME. Very comfortably Somewhat comfortably Not very comfortably Not at all comfortably DK/Refused N= Q: Do you believe that in [INSERT COUNTRY] the average retiree s pension and benefits, excluding personal sources of retirement income like savings or wages, are sufficient for an older person to live very comfortably, somewhat comfortably, not very comfortably, or not at all comfortably? 0

109 Average Retiree s Quality of Life Based on Pensions and Benefits, Excluding Personal Sources of Income (by Country) THE AVERAGE RETIREE S PENSION BENEFITS ARE PERCEIVED TO BE MORE COMFORTABLE IN GERMANY, FRANCE AND JAPAN THAN IN OTHER COUNTRIES. SOME VIEW TODAY S ELDERLY AS BETTER OFF THAN IN THE PAST; OTHERS VIEW GOVERNMENT PENSIONS ONLY AS MINIMUM SUPPORT AND EXPECT THESE PENSION SYSTEMS TO ENCOUNTER SOLVENCY PROBLEMS. LEADERS BELIEVE THAT INDIVIDUALS NEED TO BE RESPONSIBLE FOR SAVING MORE. Very comfortably Somewhat Comfortably Not very comfortably Not at all comfortably DK/Ref Germany Japan France US Italy Canada UK N= N= N= N= N= N= N= Q: Do you believe that in [INSERT COUNTRY] the average retiree s pension and benefits, excluding personal sources of retirement income like savings or wages, are sufficient for an older person to live very comfortably, somewhat comfortably, not very comfortably, or not at all comfortably? 0 n-size 0

110 Preferred Primary Provider of Retirement Income (Total) OVER THREE-QUARTERS OF G- LEADERS BELIEVE THAT THE RESPONSIBILITY FOR PROVIDING RETIREMENT INCOME SHOULD NOT REST ON ONE SOURCE ALONE IT SHOULD BE A COMBINATION OF INDIVIDUALS, GOVERNMENT PROGRAMS AND EMPLOYER-BASED PENSIONS. Combination Individuals themselves through savings and employment Government programs Employer-based pensions DK/Refused N= Q: Of the following, who do you believe should have the primary role in providing retirement income? 0

111 Preferred Primary Provider of Retirement Income (by Country) MOST LEADERS BELIEVE A COMBINATION OF INDIVIDUALS, GOVERNMENT PROGRAMS AND EMPLOYER-BASED PENSIONS SHOULD SHARE RESPONSIBILITY FOR PROVIDING RETIREMENT INCOME. n-size 0 0 Germany France UK Italy Japan US Canada N= N= N= N= N= N= N= Combination Individuals themselves through savings and employment Government programs Employer-based pensions DK/Ref Q: Of the following, who do you believe should have the primary role in providing retirement income?

112 Conclusions

113 Conclusions Overall, a majority of the adults in these ten developed countries have a level of optimism about retirement that can be best described as guarded, a limited level of engagement in thinking about retirement issues, and are less than fully informed about major retirement issues. All are cause for concern. Optimism about retirement is relatively highest in Australia and Canada followed by the United States. It is lowest in Germany, France and Italy. Countries also differ markedly in terms of their engagement in and information about retirement issues. Relative to other countries: Americans, Germans and Canadians consider themselves both informed and thinking about retirement, The Italians, Swedes, French and Japanese are neither well informed nor actively thinking about retirement, The Dutch and Australians consider themselves well informed but are not actively thinking about retirement. Public pension systems are stressed, yet public pensions are regarded as a critical source of retirement income across countries, to a greater extent than personal savings, investments or employer-provided pensions. Only in the US, the UK and Australia are employer-based pensions regarded as equally critical. Across all ten countries, only of adults are very confident they will be able to live comfortably in retirement for twenty-five years or more. More than two-fifths are not very or not at all confident. Confidence in the adequacy of retirement incomes is highest overall in Canada and the Netherlands, and lowest in Germany, France, Italy, Sweden and Japan.

114 Conclusions Self-reported current health status also varies in a similar way across countries, with Australians, Canadians and Americans reporting better health than Italians, Germans, Japanese and French. Despite stresses on health care systems in many countries, survey respondents are generally relatively confident in having access to quality health care in retirement, being able to pay for medical expenses and prescription drugs, and expect good health throughout their retirement. Confidence in the ability to pay for long term care, however, is lower. As with government pensions (above), the primary expectation in most countries is that governments, rather than families or personal savings, will bear the main burden of health care costs. At the extremes, Germans and Italians look to government the most, Americans (in spite or possibly because of Medicare and Medicaid) the least. Expectations of governments in terms of providing for retirement income and retirement health care are not matched, however, by a high degree of confidence in the ability of governments to provide, either now or in the future. Indeed, on average across all countries, respondents are more inclined to a position of absolutely no trust than of total trust.

115 Conclusions Respondents see a shared responsibility between government, employers and individuals themselves in providing retirement income, with government most often seen as having the primary responsibility. More than nine in ten () believe government has at least some responsibility for supporting retirees, while believe government has the primary responsibility. About one in three () believe the primary responsibility lies with the individual, and just with employers. Expectations of government in this regard are the highest in Italy, Sweden, Japan, France and Germany. Faced with several alternative and politically difficult policy solutions for maintaining government support for retirees, the solution considered most acceptable by respondents generally is raising taxes among higher paid workers. The second most favored solution is increasing the size of the labor force by easing immigration restrictions. Raising the retirement age to qualify for public pensions is the least favored policy solution. The US and France are the least receptive to relaxing immigration, Sweden the most. Finally, survey respondents in most countries do plan or expect to continue working in some form after retirement, and money is a less important motivation than wanting to stay connected and involved or the simple enjoyment of work. At the extremes, Americans are the least likely to stop working completely, Italians the most likely.

116 International Retirement Security Survey July 00 For further information, please contact: Ada-Helen Volentine, Ph.D., Senior Research Advisor (0) - or Ladan Manteghi, Director, International Affairs [email protected], (0) -0 AARP 0 E Street NW Washington, DC 00 (Copyright 00 by AARP. All rights reserved.)