Building a Secure Financial Future in Wisconsin€¦ · BUILDING A SECURE FINANCIAL FUTURE IN WISCONSIN: AN AARP SURVEY Page 1 MOST WORKING WISCONSIN REGISTERED VOTERS ARE NOT CONFIDENT

Building a Secure Financial Future in Wisconsin:

Key Findings From an AARP Survey

January 2015Copyright © 2015 AARPAARP Research601 E Street NWWashington, DC 20049www.aarp.org/researchReprinting with

BUILDING A SECURE FINANCIAL FUTURE IN WISCONSIN: AN AARP SURVEY Page 1

MOST WORKING WISCONSIN REGISTERED VOTERS ARE NOT CONFIDENT THEY WILL HAVEENOUGH SAVINGS FOR RETIREMENT AND WISH THEY’D SAVED MORE, AND MANY ARE LIKELY TO

PUT OFF RETIREMENT AS LONG AS POSSIBLE

American workers are not saving enough to live comfortably in retirement. According to the NationalInstitute on Retirement Security, almost half (45 percent or 38 million) of U.S. working-age households ages25-64 are lacking retirement account assets either in an employer based 401(k) or in an IRA.1 Additionally,NIRS reports that median retirement account balances for all working age households is $3,000. Mosthouseholds with an older worker ages 50-64 face an actual retirement savings that will be far too low tomaintain their standard of living.

Employer paid pensions are mostly a thing of the past. Workers are now largely responsible for saving fortheir retirement through defined contribution plans such as a 401(k). Nationally, just over half of adultworkers ages 18 to 64 works for an employer who does not offer a retirement plan. In Wisconsin, over fourin ten (42.2%) adult workers are faced with no employer savings options. 2 Yet when workers have a way tosave through their employer, their rate of retirement savings goes up exponentially.

This survey of 1,000 registered voters ages 45 and older residing in Wisconsin was fielded for AARP byPrecision Opinion Research in early September 2014 and has a sampling error of +/- 3.1 percent.

KEY SURVEY FINDINGS:

Over four in ten (42%) working Wisconsin registered voters age 45 and older indicate theiremployer does not offer a workplace savings plan to employees such as a 401k or 403b.

Well over half (59%) of working Wisconsin registered voters age 45 and older indicate theiremployer does not offer the traditional pension plan.

Just under half (49%) of working Wisconsin registered voters age 45 and older say they arecurrently contributing to a workplace 401k or 403b.

Among those not currently participating in a workplace savings plan or any other options testedin the survey, their top reasons are the lack of a plan through their employer and not havingenough money to contribute.

Sixty percent of working Wisconsin registered voters age 45 and older says they are very orsomewhat likely to put off retirement as long as possible, with one-third (33%) saying they arevery likely.

More than half of working Wisconsin registered voters age 45 and older indicates that majorfactors in their decision to continue working beyond traditional retirement age include needingthe income (59%); needing to pay for out of pocket health care expenses (55%) or needing tomaintain health coverage (58%).

1National Institute on Retirement The Retirement Savings Crisis: Is It Worse Than We Think?

http://www.nirsonline.org/index.php?option=com_content&task=view&id=768&Itemid=482

AARP Public Policy Institute tabulation of the U.S. Census Bureau's Current Population Survey, March Supplement (2011-2013)


Not many working Wisconsin registered voters age 45 and older say they are very confidentabout certain aspects of retirement:

just slightly more than a third (35%) say they are very confident they will have enoughmoney in retirement to cover basic expenses;

only one-quarter (25%) say they are very confident they will have money to livecomfortably;

just eighteen percent say they are very confident they will have enough money to covermedical expenses.

Most (88%) working Wisconsin registered voters age 45 and older say they wish they had moremoney saved for their retirement years.

Only twelve percent of all Wisconsin registered voters age 45 and older say they are stronglyopposed to a Wisconsin retirement savings plan.

Among those who do not strongly oppose the proposal, most view each of the plan featurestested as very important:

portability: 80%;

low cost to taxpayers: 72%;

low cost to workers: 70%;

accessibility: 65%;

voluntary: 68%.

Those who consider themselves Republican voters are statistically significantly more likely thanDemocrats to say they strongly or somewhat support a Wisconsin retirement savings plan.(Republicans strongly/somewhat support: 50%; Democrats strongly/somewhat support: 44%).

Close to two-thirds of all working Wisconsin registered voters age 45 and older agree (stronglyagree: 31%; somewhat agree: 30%) that state elected officials should support a state run savings

plan for those without access in the workplace.

METHODOLOGY

The AARP 2014 Wisconsin Financial Security Survey was conducted as a telephone survey amongregistered voters age 45 or older in Wisconsin. The survey examined the opinions and experiences on issuesrelated to personal finance and retirement planning. The survey was approximately 12 minutes in length. Theinterviews were conducted in English by Precision Opinion from September 8th to September 23rd, 2014.The sample utilized a registered voter list. The voter list sample targeted age 45+ by gender based on theregistered voter universe in the state of Wisconsin. The margin of sampling error for the sample of 1000 forWisconsin is +/-3.1%. Responses may add up to more than 100 due to rounding.


ANNOTATED SURVEY


Wisconsin AARP Survey:Gauge Need/Support for State Work and Save Legislation

(n= 1,000 Registered Voters in Wisconsin Age 45+; Sampling Error = ± 3.1%)

Hello, this is _________ calling from ____________, a national opinion research firm. We are nottelemarketers and are not trying to sell you anything. We are interested in your opinions on work andretirement. Your opinions are important, and we would greatly appreciate your participation. Your responseswill be kept entirely confidential. We need only about 10 to 15 minutes of your time.

SCREENING QUESTIONS:

S-1 We are interested in the opinions of people from different age groups, so first let me ask if you are over orunder age 45?

45 and over Skip to S-544 or younger Continue to S-2Don’t know/refused Thank and terminate

S-2 Is there anyone else in your household who is age 45 or older?

Yes Continue to S-3No Thank and terminateDon’t know Thank and terminateRefused Thank and terminate

S-3 May I speak with that person?

Yes Continue to S-4Person unavailable Schedule callbackDon’t know/refused Thank and terminate

S-4 IF NEW PERSON ON LINE. Hello, my name is _________ calling from ____________, a national opinionresearch company. We are interested in your opinions on work and retirement. Your opinions areimportant, and we would greatly appreciate your participation. Your responses will be kept entirelyconfidential. We need only about 10 to 15 minutes of your time.

(CONFIRM:) My questions are for those who are age 45 or older. Would that be you?

Yes, it’s me ContinueNo Thank and terminateDon’t know/Refused Thank and terminate.


S-5 What is your age as of your last birthday? _______

Total(1000)

40 to 49 13.0%

50 to 54 16.0%

55 to 64 32.2%

65 or older 38.9%

S-6 Do you live in Virginia?

Total(1000)

Yes Continue to S-7 100.0%

No Thank and terminate. -

Don’t know Thank and terminate -

Refused Thank and terminate -

S-7 Are you registered to vote in Virginia?

Total(1000)

Yes Continue to S-8 100.0%

No Thank and terminate. -

Don’t know Thank and terminate -

Refused Thank and terminate -

S-8 (RECORD:) Gender

Total(1000)

Male 47.7%

Female 52.3%


MAIN QUESTIONNAIRE

GENERAL WORK AND RETIREMENT PLANS

1. I’d like to begin by asking you a few general questions about your work status. Which of the following bestdescribes your current employment status? Are you… [READ EACH ANSWER CATEGORY –ACCEPT ONLY ONE RESPONSE]

Total(1000)

Self-employed full-time 5.5%Self-employed part-time 3.8%Employed full-time 24.5%Employed part-time 9.1%Retired and not working at all [SKIP TO Q15 47.1%Unemployed and looking for work [SKIP TO Q15 3.9%Or are you not in the labor force for other reasons [SKIP TO Q15 5.7%Don’t know [DO NOT READ] [SKIP TO Q15 0.2%Refused [DO NOT READ] [SKIP TO Q15 0.2%

2. Do you currently own a business and have at least one other person you pay as an employee?

Total(429)

Yes 9.6%No [SKIP TO QUESTION 4] 90.2%Not sure/ Don’t know [DO NOT READ] [SKIP TO QUESTION 4] 0.2%Refused [DO NOT READ] [SKIP TO QUESTION 4] -

3. And do you employ…..:

Biz Owners(41)

a. Just one person? 36.6%

b. 2 – 19 persons? 58.5%

c. 20 – 39 persons? 2.4%

d. 40 – 99 persons? 2.5%

e. 100 or more persons? -

f. Not sure [DO NOT READ] -

g. Refused [DO NOT READ] -


4. [IF Q2=YES, USE: Do you] [IF Q2=NO, NOT SURE, REFUSE, USE: Does your employer] offer atraditional pension plan, that is, a benefit plan where YOU/THEY set up a retirement account based onsalary and years of employee service and contribute money to it FOR the employee – the employee does notcontribute money to this?

Employed(429)

Yes 38.5%No [IF Q2= YES, SKIP TO QUESTION 7. IF Q2=NO, SKIP TOQUESTION 7]

58.8%

Not sure/ Don’t know [IF Q2= YES, SKIP TO QUESTION 7. IFQ2=NO, SKIP TO QUESTION 7]

2.6%

Refused [DO NOT READ] [IF Q2= YES, SKIP TO QUESTION7. IF Q2=NO, SKIP TO QUESTION 7]

0.2%

[IF Q2=YES, GO TO QUESTION 7]5. Are you currently participating in your employer’s pension plan?

Offer Plan(156)

Yes 87.2%No [SKIP TO QUESTION 7] 11.5%Not sure/ Don’t know [DO NOT READ] [SKIP TO QUESTION 7] 1.3%Refused [DO NOT READ] [SKIP TO QUESTION 7] -

6. And are you vested by the traditional pension plan with your employer – that is, have you worked for yourcompany long enough to ‘own’ the money they put into your pension on your behalf so it can no longer betaken away from you if you leave the company?

Participants(136)

Yes 83.1%

No 13.2%

Not sure/ Don’t know [DO NOT READ] 3.7%

Refused [DO NOT READ] -


7. [IF Q2=YES, USE: Do you] [IF Q2=NO, NOT SURE, REFUSE, USE: Does your employer] offer aworkplace savings plan to employees such as a 401k or 403b?

Employed(429)

Yes 55.3%

No 42.2%


Refused [DO NOT READ] 0.2%

8. Do you currently contribute any money to any of the following retirement savings options for yourself?[ROTATE A-E]

“Yes” Responses: Employed(429)

A workplace saving plan such as a 401k or 403b 48.5%A personal IRA, Keogh, or SEP plan 38.5%A personal savings account 68.8%Other personal investments in stocks, mutual funds 48.7%A Thrift Savings Plan 8.4%

9. [ONLY IF Q8 a-e = NO] Now I’m going to read to you some reasons people may have for notparticipating in a workplace savings plan or an employer’s pension plan. After I read each, please tell mewhich ONE statement best describes your reason? Is it.. [ROTATE A-E AND READ EACH ANSWERCATEGORY – READ F LAST]

Don’tParticipate

(58)My workplace doesn’t offer it 18.9%I don’t have extra money to contribute 39.6%I am not interested in contributing right now 12.1%My spouse/partner contributes 3.5%Some other reason: (specify): __________________ 8.6%Not sure [DO NOT READ] 8.6%Refused [DO NOT READ] 8.7%

10. Realistically, at what age do you expect to retire and not work for income?

Mean Age=65.13


11. Thinking about your own current work and financial situation, how likely is it that you will put off retiringfrom work for as long as possible? Would you say you are very likely, somewhat likely, not too likely, ornot at all likely to put off retiring from work?

Employed(429)

Very likely 32.9%

Somewhat likely 26.6%

Not too likely 19.6%

Not at all likely [SKIP TO QUESTION 13] 17.9%

Not sure/ Don’t know [DO NOT READ] [SKIP TO QUESTION 13] 2.6%

Refused [DO NOT READ] [SKIP TO QUESTION 13] 0.5%

12. People have many reasons for continuing to work beyond the traditional retirement age. For each reason,

please tell me if it is a major factor for you, a minor factor, or not a factor at all in your decision to keep

working beyond traditional retirement age. Would you say [INSERT a-h; RANDOMIZE a-h] is a major or

minor factor to continue working, or not a factor at all? [READ EACH RESPONSE FOR a-c and then if

need to as a prompt/recall]

a. Needing to pay for out-of-pocket health care expenses

Put Off Retiring(339)

Major factor 54.5%

Minor factor 26.6%

Not a factor at all 18.0%

Not sure 0.9%

Refused -

b. Needing to maintain health insurance coverage


Major factor 58.1%

Minor factor 18.9%


Not sure 0.3%

Refused -


c. Enjoying the job or working


Major factor 47.5%

Minor factor 32.7%


Not sure 0.6%

Refused -

d. To qualify for social security


Major factor 36.5%

Minor factor 32.8%


Not sure 1.5%

Refused -

e. To fulfill pension requirements


Major factor 22.9%

Minor factor 26.6%


Not sure 1.8%

Refused -

f. To feel useful or productive


Major factor 41.3%

Minor factor 33.3%


Not sure 0.6%

Refused -


g. Needing the income


Major factor 56.0%

Minor factor 30.1%


Not sure 0.6%

Refused -

h. To save more for retirement


Major factor 47.4%

Minor factor 36.1%


Not sure 0.3%

Refused -

FINANCIAL SECURITY AND PLANNING

13. Overall, how confident are you that [RANDOMIZE and INSERT a-d]. Are you very confident, somewhatconfident, not too confident, or not at all confident?

a. you will have enough money to take care of your basic expenses during your retirement years?

Employed(429)

Very confident 34.5%

Somewhat confident 52.7%

Not very confident 6.0%

Not confident at all 5.6%




b. you will have enough money to live comfortably throughout your retirement years?

Employed(429)







c. You will have enough money to take care of any medical or health bills through your retirementyears?

Employed(429)







d. You will have enough money to pay for long-term care for yourself or your spouse or partnerthroughout your retirement years?

Employed(429)








14. Thinking about the amount you currently have in savings and investments, not including the value of yourprimary residence or any pension plans, do you wish you had more money saved for your retirement years?

Employed(429)

Yes 88.3%No [SKIP TO Q16] 10.3%Not sure/ Don’t know [DO NOT READ] [SKIP TO Q16] 1.4%Refused [DO NOT READ] [SKIP TO Q16] -

15. [IF Q14=YES] There are many reasons people have for not saving more for their retirement years. After I

read each possible reason to you, please indicate if it applies to you by saying ‘yes’ or ‘no’. Let’s begin - Is

it.. … [RANDOMIZE a-o, read p last ] [PROGRAMMER: CODE ‘YES’ OR ‘NO’ FOR a through

p]

“Yes” ResponsesWish More

Money(379)

I don’t earn enough to save more. 53.8%I can’t afford to save more. 51.2%I’m paying down debts. 58.3%I had unexpected medical expenses for myself or a family member. 26.9%I have high medical costs in general. 19.5%The recession. 54.3%I have too much job uncertainty. 20.0%I’m too busy to fit in saving for the future. 10.3%I don’t have the self-discipline to force myself to save. 12.9%I don’t have specific retirement savings goals. 32.9%I spend too much money. 23.7%I make too many unnecessary purchases. 15.8%I just don’t think about the future very much. 18.0%I’m more concerned about my current finances than my retirementfinances.

53.0%

Retirement seems so far away – I’ll get to it later. 16.4%Is there another reason I didn't mention? 31.9%

16. Have you ever tried to figure out how much money you will need to have saved by the time you retire sothat you can live comfortably in your retirement?

Employed(429)

Yes 56.4%

No 41.7%




WISCONSIN WORK AND SAVE PROPOSAL

17. One proposal to help people without access to retirement savings options at work would be to set up aWisconsin retirement savings plan. It would be voluntary and flexible, allowing for professional moneymanagement and low fees. The plan would be self-funded, and would not cost taxpayer dollars. Howstrongly do you support or oppose this plan?

Total(1000)

Strongly support 16.7%

Somewhat support 27.0%

Neither support nor oppose 23.5%

Somewhat oppose 6.4%

Strongly oppose [SKIP TO QUESTION 18] 11.7%



18. [IF Q17= STRONGLY, SOMEWHAT, NEITHER SUPPORT/OPPOSE, SOMEWHAT OPPOSE]Now I’m going to tell you some features of the proposed Wisconsin retirement savings plan. After I finishreading each feature, tell me if you think it is very important, somewhat important, not too important, ornot at all important for a state retirement savings plan. Let’s begin …… How important is [insert a-e andthen read, would you say this is very important feature, a somewhat important feature, not too important,or not an important feature at all. RANDOMIZE a-e AND READ ALL ITEMS]

a. Portability…… being able to take the money and account with you to another job?

Don’tStronglyOppose(736)

Very important 80.2%

Somewhat important 13.0%

Not too important 1.8%

Not important at all 3.3%




b. A low cost to taxpayers?

Don’tStronglyOppose

(736)Very important 71.9%Somewhat important 18.5%Not too important 3.0%Not important at all 2.9%Not sure/ Don’t know [DO NOT READ] 3.0%Refused [DO NOT READ] 0.8%

c. A low cost to workers?



d. Accessibility – a savings plan that is an opportunity for everyone in the state?




e. Voluntary participation?

Don’t StronglyOppose


19. And how important would it be to you for a state retirement savings plan to allow for automatic deduction– where contributions are taken directly from an employees paycheck? Would this be a very importantfeature, somewhat important, not too important, or not an important feature at all for a state retirementsavings plan?

Don’t StronglyOppose


20. How strongly do you agree or disagree with the following statement: elected officials should supportcreating a Wisconsin run savings plan so all residents can have the opportunity to save for retirement.

Total(1000)

Strongly agree 31.1%

Somewhat agree 30.4%

Neither agree nor disagree 13.9%

Somewhat disagree 6.1%

Strongly disagree 13.1%




Demographics

The following questions are for classification purposes only and will be kept entirely confidential.

AGE DEMOGRAPHIC WAS DELETED BECAUSE ASKED IN SCREENER – DEMOGRAPHIC Q’S RENUMBERED

D-1 What is your 5-digit ZIP Code? ________________

Record ZIP CodeDon’t know [DO NOT READ]Refused [DO NOT READ]

D-2 Are you currently …?

Total(1000)

Married 77.1%

Living with a partner but not married 2.4%

Widowed 7.8%

Divorces 4.2%

Separated 0.6%

Never Married 6.3%

Don’t know [DO NOT READ] 0.3%


D-3 Are you of Hispanic, Spanish, or Latino origin or descent?

Total(1000)

Yes 1.7%

No 96.0%




D-4 What is your race? [DO NOT READ UNLESS NECESSARY OR FOR CLARIFICATION]

Total(1000)

White or Caucasian 91.2%

Black or African American 3.5%

Native American or Alaskan Native 0.5%

Asian 0.3%

Native Hawaiian or other Pacific Islander -

Other 1.9%

Don’t know (DO NOT READ) 0.5%

Refused (DO NOT READ) 2.1%

D-5 Do you consider yourself a Democrat, a Republican, an Independent, or something else?

Total(1000)

Democrat 24.3%

Republican 25.3%

Independent 31.0%

Something else 12.0%



D-6 How likely are you to vote in the Wisconsin general election this November? Would you say… [READLIST]

Total(1000)

Extremely likely 67.1%Very likely 22.8%Somewhat likely 6.2%Not very likely 0.7%Not at all likely 1.2%Don’t know [DO NOT READ] 0.6%Refused [DO NOT READ] 1.4%

Key Findings from AARP Survey of Wisconsin Registered Voters Age 45 and Older Page 19

D-7 Are you or your spouse or partner a member of A-A-R-P, formerly known as the American Association ofRetired Persons?

Total(1000)

Yes 39.7%

No 57.7%



D8 What was your annual household income before taxes in 2013?

Total(1000)

Less than $10,000 2.1%

$10,000 to just under $20,000 6.6%

$20,000 to just under $35,000 9.0%

$35,000 to just under $50,000 14.5%

$50,000 to just under $60,000 10.4%

$60,000 to just under $75,000 8.7%

$75,000 to just under $100,000 9.4%

$100,000 to just under $125,000 4.9%

$125,000 or more 7.1%



D-9 “The client for this survey sometimes receives phone calls from reporters who want to interview peoplefor news stories. Would you be willing to speak with a reporter about some of the things addressed in thissurvey? You may be contacted by the client prior to being referred to the reporter. This would not be a salescall.

YesNo [THANK AND END SURVEY]

A1.1 - (IF YES TO A1, THEN EXPLAIN WHAT INFORMATION WILL BE SHARED WITH THE CLIENT AND AGAIN ASKFOR CONSENT. EXAMPLE WORDING IS BELOW.)


Because you would be willing to speak with a reporter, we also will be providing some limited informationabout you to the client. This information will be limited to the following: (1) your first name, (2) yourtelephone number, (3) your gender (male or female), (4) the census region in which you live, (5) your agegroup (e.g., 25-49, 50-64, or 65+), and up to 4 additional responses your gave to this survey. Some of thatinformation may be shared with the reporter as background for the interview. These questions/responses willbe related to the main objectives of the survey itself.

Are you still willing to speak with a reporter?Yes, I reconfirm my consentNo [THANK AND END SURVEY]

A2. Thank you for indicating your willingness to speak with a reporter. Before a reporter contacts you, theclient may contact you first to verify that you are still interested in speaking with a reporter. What phonenumber would be best for the client and/or the reporter to use to reach you? Please provide your area codeand phone number. [VERIFY FOR ACCURACY]

PHONE NUMBER______________

A3. Please provide your first name so the client and/or the reporter will know who to ask for.FIRST NAME (SPECIFY) ___________

Thank you very much for your time – have a nice day/evening.


AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million, that helps people turntheir goals and dreams into real possibilities, strengthens communities and fights for the issues that mattermost to families such as healthcare, employment and income security, retirement planning, affordable utilitiesand protection from financial abuse. We advocate for individuals in the marketplace by selecting products andservices of high quality and value to carry the AARP name as well as help our members obtain discounts on awide range of products, travel, and services. A trusted source for lifestyle tips, news and educationalinformation, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin;www.aarp.org; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language websiteaddressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or makecontributions to political campaigns or candidates. The AARP Foundation is an affiliated charity that providessecurity, protection, and empowerment to older persons in need with support from thousands of volunteers,donors, and sponsors. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and theU.S. Virgin Islands. Learn more at www.aarp.org.

State Research brings the right knowledge at the right time to our state and national partners in support of theirefforts to improve the lives of people age 50+. State Research consultants provide strategic insights andactionable research to attain measurable state and national outcomes. The views expressed herein are forinformation, debate, and discussion, and do not necessarily represent official policies of AARP.

AARP staff that contributed to the design and implementation of this study include AARP state office staff inWisconsin: Sam Wilson, Lisa Lamkins, Helen Marks Dicks; State and National Group Integrated Campaigns:Jodi Sakol, Reshma Mehta, Scott Musser; State and National Group State Advocacy Economic Security:Sarah Mysiewicz-Gill; Rachelle Cummins, Darlene Matthews, Brittne Nelson, Cheryl Barnes of the ResearchCenter. Precision Opinion fielded, entered, tabulated, and weighted the data. Jennifer authored this summary.For more information about this survey, the methodology or the dispositions, please contact Jennifer H. Sauerat [email protected] or at (202) 434-6207

AARP Research Center

For more information about this survey,

please contact Jennifer Sauer at 202.434.6207 or [email protected]

Documents

Building a Secure Financial Future in Wisconsin€¦ · BUILDING A SECURE FINANCIAL FUTURE IN WISCONSIN: AN AARP SURVEY Page 1 MOST WORKING WISCONSIN REGISTERED VOTERS ARE NOT CONFIDENT