DON T YOU (FORGET ABOUT MEANS) Third Biennial Study on the Retirement Readiness of Generation X

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1 DON T YOU (FORGET ABOUT MEANS) Third Biennial Study on the Retirement Readiness of Generation X MARCH 2016

2 2 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X ABOUT THE INSURED RETIREMENT INSTITUTE The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of more than 30 organizations, and is the only association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education, and advocates for the sustainable retirement solutions Americans need to help achieve a secure and dignified retirement. Learn more at IRI All rights reserved. No part of this report may be reprinted or reproduced in any form or used for any purpose other than educational without the express written consent of IRI.

3 (DON T YOU) FORGET ABOUT MEANS Third Biennial Study on the Retirement Readiness of Generation X Overview Generation X, resilient latchkey kids born into the dawning of the personal technology era, likely never considered their twilight years while watching John Hughes films like The Breakfast Club and yearning for independence. Yet here they are, the oldest GenXers rapidly approaching the end of their working years, and the youngest hitting their prime earning years. Unfortunately these GenXers are in many ways unprepared for, and unrealistic about, the transition to retirement. Replacing earned income with Social Security, pensions (for the few who have them), and income from personal savings and retirement assets is as independent as it gets, and this generation needs much education and guidance to achieve success. Thriller -s Key Observations Economic satisfaction among GenXers has dropped over the past five years, with six in 10 GenXers reporting feeling satisfied from an economic standpoint, as compared to more than eight in 10 in Half of GenXers think saving enough for retirement is their top financial concern. Only 8 percent of GenXers have $250,000 or more saved for retirement. A 53 year-old purchasing a deferred income annuity today would need $250,000 to produce $30,000 of annual retirement income, the amount needed to fill the gap between current average annual retiree expenditures and the average Social Security benefit. 64 percent of GenXers have money saved for retirement, the same as in 2013 but down from 72 percent in Of those with retirement savings, 77 percent have added to retirement savings in the past 12 months, equivalent to prior years. 73 percent of GenXers with retirement savings have less than $150,000 saved for retirement, as compared to 77 percent in 2013 and 76 percent in This is associated with a shift into higher savings levels among those with retirement savings, as 14 percent of GenXers have between $150,000 and $250,000 saved for retirement, up from 9 percent in percent have two or more retirement accounts. Four in 10 GenXers rebalance their retirement accounts at least annually, up from less than onethird in percent of GenXers believe they will retire at age 65 or later, compared to 51 percent in 2013 and 42 percent in This shift is primarily driven by greater certainty in retirement timing, with 16 percent of GenXers being unsure when they will retire, versus 25 percent in 2013 and 28 percent in Defined contribution plans and Social Security are the top sources of income GenXers expect to tap in retirement, consistent with prior study years 3

4 4 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X Increasing taxes and reducing or eliminating tax-deferred savings would have a negative impact on GenXers savings:»» Reduction/elimination of tax deferral: 25 percent less likely to save»» Increase in Social Security payroll tax: 30 percent less likely to save»» Increase in income tax: 44 percent less likely to save Nearly eight in 10 GenXers consider tax deferral an important aspect of a retirement investment, consistent with prior study years. 58 percent of GenXers have not tried to calculate what they need to have saved by the time they retire. Of those who have, 34 percent did not factor in health care expenses. Among those who did not include health care expenses, the top reason was not knowing how to calculate them. 41 percent of GenXers believe health care expenses will consume 20 percent or less of their retirement savings, yet research suggests that health care represents a third of expenses for those aged 60 and older. 67 percent of GenXers believe it is important to leave an inheritance to loved ones, yet only 24 percent are highly confident they will have enough money to support themselves throughout retirement. 71 percent have not consulted a financial professional. Of those who have, 81 percent have discussed retirement with their advisor and 71 percent have had their advisor develop a retirement plan. GenXers who work with financial professionals are twice as likely as those who plan on their own to have at least $100,000 saved for retirement. If money runs out in retirement, 65 percent of GenXers plan to return to work if able, and 60 percent plan to downsize to rely solely on Social Security for retirement income. Walk of Life GenXers Views on the Economy, Finances An important backdrop to retirement preparedness is the level of overall satisfaction Americans have with their lives, specifically from an economic standpoint. This helps inform other areas of demographic retirement research, as the level to which consumers are prepared for the future will impact how they feel about their economic well-being. In 2015, members of Generation X reported lower levels of economic satisfaction than in This downward trend in economic satisfaction was also observed in IRI s research on Baby Boomers. Economic Satisfaction 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 76% 83% 48% Boomers 6 Gen X It may seem odd to see economic satisfaction dropping over a period of significantly rising equity market values and retirement plan balances. During this time, the average 401(k) balance rose from $69,100 in 2011 to $91,300 in However, recent research also finds that 65 percent of

5 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 5 Americans wealth is held in cash, therefore many GenXers may have only partially participated in rising markets, and perhaps some not at all. 2 The drop in satisfaction also may be driven both by immediate financial concerns, as well as concerns about the future. A third of GenXers are finding it more difficult to pay their mortgages or rent, and this increases to over 40 percent among younger GenXers. Both older and younger GenXers are nearly equally concerned about other financial matters, with half concerned about their ability to save enough to retire when, where and how they want, and about four in 10 worried about retirement expenses. One in three GenXers also are concerned about paying off personal debt and losing full-time employment. Despite these concerns, only one in 10 prematurely withdrew funds from an IRA or 401(k), and one in four actually increased their retirement plan contributions. Fewer than one in five stopped contributing to a retirement plan, down from about one in four in Financial Changes in the Past Twelve Months Found it more difficult to pay mortgage or rent 35% 37% Prematurely withdrew funds from 401(k), IRA, etc. 13% 15% 11% Stopped contributing to 401(k), IRA, etc. 16% Increased contributions to 401(k), IRA, etc. 23% 28% Postponed plans to retire 15% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% Pre-Retirement Financial Concerns Saving enough to retire when, where, and how desired 50% 50% 50% Significant medical expenses Basic living expenses Paying off other debt Loss of full-time employment 37% 36% 38% 37% 32% 40% 40% 40% 0% 10% 20% 30% 40% 50% 60%

6 6 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X While it is encouraging to see GenXers increasing their retirement plan contributions, sustaining or accelerating this trend requires that tax policies supporting retirement savings remain unchanged or expand. GenXers report that they would be less likely to save for retirement if taxes are increased or if tax incentives for retirement savings are reduced or eliminated 25 percent would be less likely to save if tax-deferred retirement savings were reduced or eliminated, 30 percent would be less likely to save if Social Security payroll taxes were increased, and 44 percent would be less likely to save if income taxes were increased. Not surprisingly then, nearly eight in 10 GenXers consider tax deferral an important aspect of a retirement investment. Impact of Governmental Changes on Desire/Ability to Save for Retirement Reduction or elimination of tax incentives 25% Increase in Social Security payroll tax 30% Increase in income taxes 4 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Less likely to save Importance of Tax Deferral as a Retirement Investment Trait Very important 31% 33% 35% Somewhat important 42% 4 46% Not very important 7% 9% 11% Not at all important 3% 3% 3% Don t know 9% 11% 13% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Sweet Child O Mine Legacy Goals of GenXers Two-thirds of GenXers believe it is important to leave a legacy to their heirs. This may be difficult for many GenXers, as they have not yet saved enough to meet their own income needs, much less leave a significant estate. In 2013, the average retiree aged had annual expenses of $46,757, 3 about $30,000 more than the current average annual Social Security benefit of $16, To fill this income

7 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 7 gap, and assuming a similar gap exists when the oldest GenXers begin to retire, a deferred income annuity paying about $30,000 per year in retirement (at age 65) would cost a 53-year-old GenXer $250,000 today. 5 Yet only eight percent of GenXers have at least $250,000 saved for retirement, and even among GenXers closest to retirement, those ages 44-53, only 11 percent have saved this much. Average Social Security Benefit $16,092 Average Annual Retiree Expenditures $46,757 Income Gap ($30,665) Annual Lifetime Income at Age 65 from $250,000 Deferred Income Annuity Purchased at Age 53 Importance of Leaving an Inheritance $30,768 Very important 29% Somewhat important 37% 38% 39% Not very important 15% 20% Not at all important 9% 12% 16% Don t know 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% The Time of My Life Planned Retirement Age of GenXers GenXers do sense that they will likely need to work longer, if they can, and retire later. More than half of Planned Age to Stop Working Full-Time 65 or older 42% 51% 58% Before age 65 26% 30% Undecided 16% 28% 25% 0% 10% 20% 30% 40% 50% 60% 70%

8 8 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X GenXers, 58 percent, believe they will retire at age 65 or later. This includes 24 percent who plan to keep working to at least 70, and is a significant increase from the 42 percent who believed they would retire at age 65 or older in Only 26 percent of GenXers believe they will retire prior to age 65, fewer than in The growth in those planning retirement at age 65 and up mostly represents a shift from the undecided category, indicating that GenXers are gaining clarity on retirement timing as they age. Promises, Promises Retirement Income Sources for GenXers As in prior years, defined contribution plan assets and Social Security are most often cited as the main sources of income in retirement for GenXers, with younger GenXers more likely to view the 401(k) as a major source, and less likely to think about Social Security as a cornerstone of their retirement. Less than a quarter of GenXers expect a traditional employer-provided defined benefit pension to provide income in retirement. Major Expected Sources of Income in Retirement Employer savings plan, e.g. 401(k) 41% 45% 49% Social Security 27% 32% 38% Personal savings Traditional employer pension IRA Employment in retirement Non-IRA investments (CDs, mutual funds, etc.) 26% 21% 21% 23% 26% 29% Sale or refinancing of a home 10% 10% 11% 0% 10% 20% 30% 40% 50% 60% Livin on a Prayer Confidence in Reaching a Secure Retirement Overall GenXers are not terribly confident about retirement. Less than a quarter believe they will have enough money to live comfortably in retirement, that they are doing a good job preparing for retirement, or that they will have enough money for expenses such as health care, long-term care, and their children s college tuition.

9 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 9 Confidence in Retirement Preparations Will have enough money to live comfortably in retirement 22% 27% Doing/did a good job preparing financially for retirement 22% 27% Will have enough money for medical expenses during retirement 21% 27% Will have enough money for long-term care expenses during retirement 20% 22% Will have enough money for long-term care expenses for parents Will have enough money for higher education expenses for children 23% 23% 0% 5% 10% 15% 20% 25% 30% The major concerns GenXers expect to have in their sunset years are changes to Social Security, medical expenses, and exhausting their financial resources. Expected Financial Concerns: Age 80 and Older Changes to Social Security Medical expenses Exhausting financial resources Above average inflation Money for food and basic needs 47% 50% 47% 48% 48% 42% 45% 47% 40% 39% 40% 38% 37% 38% 53% Relying on family/friends for financial help Suffering a cognitive decline Paying rent Realizing significant investment losses Victimized by scams or elder abuse 25% 23% 23% 22% 32% 31% 32% 31% 29% 31% 27% 35% 39% 0% 10% 20% 30% 40% 50% 60%

10 10 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X A commonly held belief across generations is the idea that one can simply return to work if retirement does not pan out as expected. However, working longer and relying on potential earned income is a risky strategy that requires both the availability of gainful employment and that one is healthy enough to pursue it. While it is admirable that two-thirds of GenXers profess to be willing to roll up their sleeves and go back to work if necessary, doing so requires both means and opportunity. Downsizing to live on Social Security, perhaps appealing in the abstract to six in 10 GenXers, is also problematic as certain needs, such as paying for the cost of health care, may make this rather difficult. Dealing With Exhausting Financial Resources in Retirement Return to work if able 65% 6 65% Downsize to live on Social Security 58% 60% 61% Seek assistance from church or social services 23% 22% Rely on family/friends Rely on children 9% 9% 9% 12% 1 11% Other 3% 0% 10% 20% 30% 40% 50% 60% 70% I Still Haven t Found What I m Looking For GenXers with Retirement Savings Goals Given the concerns GenXers have about their finances in retirement, one might expect that many have determined how much they need to save to avoid the eventualities they fear. Sadly, this is not the case, as almost six in 10 have not yet tried to calculate how much they need to save to live comfortably in retirement.

11 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 11 Have Calculated Amount Needed to Retire All ages 42% 58% 4 56% 41% 59% 0% 10% 20% 30% 40% 50% 60% Yes No Encouragingly, among those GenXers who have attempted to figure out how much they need to have saved, six in 10 have included health care costs in the calculation. Retirement Calculation Includes Health Care Costs All ages 5% 61% 5% 33% 62% 6% 35% 59% 0% 10% 20% 30% 40% 50% 60% 70% Yes No Don t know However, they miss the mark in terms of estimating how much health care might cost them during retirement. From age 60 on, retirees can expect health care to comprise approximately 33 percent of expenses. 6 About four in 10 GenXers believe that health care will consume less than 20 percent of their income, with fewer than one in five estimating a more realistic 31 to 40 percent.

12 12 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X Expectations of Health Care Costs as a Percentage of Retirement Income All ages 13% 17% 29% 41% 16% 29% 37% 11% 15% 30% 4 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 20% or less 21% to 30% 31% to 40% More than 40% Of GenXers who did not include health care costs in their estimated retirement savings calculations, by far the most common reason cited is lack of ability, with as many as six in 10 stating they are unsure what the costs will be or do not know how to calculate them. This is an area where financial professionals can add considerable value by educating clients about what this component of their expected retirement expenditures means for retirement savings and planning, and helping prompt GenXers to both save more and look at retirement income products that could help prepare them to manage these expenses. For example, variable annuities with lifetime income, which often embed guaranteed growth, or deeply discounted deferred income annuities that can be purchased relatively inexpensively years prior to retirement. Reasons for Omitting Health Care Costs from Retirement Calculations Unsure of costs/don t know how to calculate 57% 62% 60% Planning to rely on Medicare 26% 32% Planning to rely on 16% 1 employer coverage Planning to rely on the Affordable Care Act 6% 7% 8% Included in general financial management 8% 13% Advisor has not discussed 5% 5% Health care is not a priority 9% 11% 8% Don t know 2% 6% 9% 0% 10% 20% 30% 40% 50% 60% 70%

13 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 13 The Cure GenXer Retirement Savings On a more encouraging note, 65 percent of GenXers have money saved for retirement. This is comparable to, albeit slightly lower than, the seven in 10 working Baby Boomers with money saved for retirement. 7 Have Money Saved for Retirement All ages 35% 36% 65% 6 66% 0% 10% 20% 30% 40% 50% 60% 70% Yes No Unfortunately, while GenXers are saving for retirement, they have not saved much. More than half have saved less than $100,000, while only one in 10 have saved $250,000 or more. The fact that most of them are saving, however, is reflected positively in the distribution of savings across age groups, with the oldest GenXers being the most likely to have saved over $100,000 or over $250,000. Continued diligence in contributing to retirement accounts over the next 12 to 31 years will help GenXers become better prepared, and financial professionals can help encourage these contributions by showing how late savers can still be great savers, even at modest income levels. For example, a 50-year-old saver making $75,000 per year can, through continued saving and catch-up contributions, add more than $200,000 to a retirement portolfio. 8 Amount Saved for Retirement Less than $100,000 50% 56% 63% Between $100,000 and $250,000 26% 25% 26% $250,000 or more 7% 12% 17% Don t know 5% 6% 7% 0% 10% 20% 30% 40% 50% 60% 70%

14 14 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X However, there has been a slight shift toward higher savings, with 14 percent of GenXers having saved between $150,000 and $250,000 versus 9 percent in Amount Saved for Retirement Less than $150k 76% 77% 73% Between $150k and $250k $250k or more 9% 10% 1 15% 13% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% GenXers of all ages are mostly attending to their retirement savings, with more than eight in 10 of the youngest having made contributions in the past year. As noted earlier, what many lack is a plan. By helping GenXers establish target retirement savings amounts as part of a comprehensive plan, financial professionals can improve outcomes. Contributed to Retirement Savings in Past 12 Months All ages 3% 20% 77% 1% 81% 22% 7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Don t know The household incomes of survey respondents reinforce the need for financial professionals to work with GenXers to establish savings goals and develop sound savings habits. Given the concerns expressed by GenXers with regard to current financial issues, it may be difficult for many to set more money aside for retirement absent a comprehensive plan to help manage all aspects of their financial lives.

15 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 15 Household Income Less than $75, % 6 Between $75,000 and $100,000 $100,000 or more 16% 1 17% Prefer not to answer 2% 2% 3% 0% 10% 20% 30% 40% 50% 60% 70% All ages About six in 10 GenXers have at least two different retirement accounts, and about one in five have three or more. Financial professionals can help individuals consolidate these accounts, manage asset allocation across accounts, and ultimately guide GenX retirees in the efficient conversion of assets into retirement income. As GenXers age and change jobs and/or careers, they will likely accumulate more accounts, as evidenced by the oldest GenXers currently being more likely to have two accounts than one, versus the youngest members of the cohort who are more likely to have only one account. Number of Retirement Accounts None 5% 5% 5% One Two 31% 37% 35% 35% 36% Three or more 20% 22% Not sure 3% 0% 5% 10% 15% 20% 25% 30% 35% 40%

16 16 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X Always Something There to Remind Me GenXers Engagement with Retirement Plans In an effort to measure how engaged they are with their retirement plans, this year s study looks at how often, and how, GenXers check on and rebalance their retirement accounts. It turns out that more than half of GenXers responsibly monitor their retirement accounts through proactive and periodic online checkups. Printed statements are used by about a third, and about a quarter go online to check their accounts when prompted by an or text, in reaction to market news, and/or with their financial professional. Only 5 percent of GenXers are not monitoring their accounts. Methods of Monitoring Retirement Accounts Periodic online checkups 52% 51% 5 Using printed statements 36% 39% Online, prompted by /text 27% 25% 29% Online, prompted by news 23% 29% With Financial Advisor 23% 22% Online, prompted by social media 7% 11% No monitoring 5% 6% 0% 10% 20% 30% 40% 50% 60% GenXers are monitoring their accounts quite frequently, with six in 10 checking balances at least monthly, and fewer than one in five checking less often than quarterly.

17 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 17 Frequency of Checking Retirement Account Balance All ages 17% 22% 61% 15% 21% 6 23% 59% 0% 10% 20% 30% 40% 50% 60% 70% At least monthly Quarterly Less than quarterly Rebalancing of retirement accounts is an important step to ensure that asset allocations do not, over time, shift out of balance with goals and risk tolerances and expose individuals to excessive risk via overconcentration in a single asset class. GenXers fall a bit short on this measure, with fewer than four in 10 rebalancing at least annually, and about half only rebalancing every few years or rarely. However, this is improved from 2013, when less than a third rebalanced at least annually and more than half every few years or rarely. Frequency of Retirement Account Rebalancing At least annually 29% 38% Once every few years 17% Rarely 30% 35% Never 12% 15% Don t know 3% 0% 5% 10% 15% 20% 25% 30% 35% 40%

18 18 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X Here I Go Again on My Own GenXers Seeking Help from Financial Professionals Most GenXers invest without professional guidance. Eight in 10 GenXers are either do it yourselfers and/or invest through a retirement plan. Only one in five invest through a financial professional, far fewer than would benefit from the services financial professionals provide. Method of Investing Directly, independently 33% 35% 38% Through a retirement plan 42% 45% 47% Through a broker or advisor 22% 22% 23% Do not invest at all 27% 29% Not sure 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Unsurprisingly then, less than a third of GenXers say they have consulted with a financial professional. However, those that have are getting the help they need, with more than eight in 10 saying their financial advisor has discussed their plans for retirement. In fact, seven in 10 of the GenXers who have consulted with a financial professional have had a retirement plan prepared for them. Investing and general financial management are other strong areas of consultation, with 62 percent and 45 percent of GenXers using these services, respectively.

19 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 19 Planning Areas Discussed with Financial Professional Retirement 81% 80% 83% Investing 62% 63% 59% General financial management 45% 45% 46% Insurance coverage Tax planning Estate planning 28% 27% 27% 27% 26% 22% 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% All ages Financial Professional Prepared a Retirement Plan All ages 5% 71% Age % 25% 69% Age % 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No Don t know

20 20 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X Working with financial professionals is also highly correlated with increased savings, as those GenXers who have consulted with advisors are twice as likely to have at least $100,000 saved for retirement. Amount Saved for Retirement Less than $100,000 43% 66% Between $100,000 and $250,000 $250,000 or more Don t know 8% 5% 7% 0% 10% 20% 30% 40% 50% 60% 70% With Financial Advisor Without Financial Advisor Is There Something I Should Know? GenXer Financial IQ GenXers do not feel that they have strong investing or financial knowledge, with about eight in 10 rating themselves only somewhat or not very knowledgeable about investing, and about two-thirds rating their financial knowledge as average or low. Level of Investing Knowledge Extremely/very knowledgeable 20% 22% Somewhat knowledgeable 37% 37% 37% Not very/not at all knowledgeable 39% 41% 43% Don t know 2% 2% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

21 DON T YOU (FORGET ABOUT MEANS): THIRD BIENNIAL STUDY ON THE RETIREMENT READINESS OF GENERATION X 21 Level of Financial Knowledge All ages 1 52% 12% 5 16% 50% 0% 10% 20% 30% 40% 50% 60% High Average Low Back to the Future Conclusion In a nutshell, Generation X needs more of almost everything: more savings, more planning, more guidance, and more knowledge about retirement, investing, and financial realities. It is a generation with expectations that may be misaligned with retirement income resources. The good news is that GenXers have two important things going for them: time and access to financial advice. Time in the form of additional years to increase contributions to retirement accounts; advice and help through engagement with financial professionals who can educate them about the challenges they re likely to face in retirement, and how to best plan to meet those challenges. Methodology The Insured Retirement Institute (IRI) commissioned Woelfel Research, Inc., to conduct a survey of individuals broadly defined as members of Generation X. The research was conducted by means of internet interviews with 805 Americans aged 34 to 53. Data were weighted by age and gender. Data was collected from December 28 through December 31, The margin of error for the sample of 805 was ± 3.5%. References 1 Fidelity Investments, BlackRock Global Investor Pulse, Bureau of Labor Statistics Consumer Expenditure Survey, Social Security Administration 5 Annuity quote generated using Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplemental Medical Insurance Trust Funds 7 Boomer Expectations for Retirement 2015 IRI, Baby Boomers and Retirement Planning Strategy IRI, 2015

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