Generational Retirement Trends Study - 2015

Millennial, Gen X, and Baby Boomer Workers and Retirees

RETIREMENT SAVING & SPENDING STUDY

22

Table of Contents

Methodology

Workers with 401(k)s: Millennials, Gen X, and Baby boomers

– Workers’ 401(k) Accounts

– Auto-features and Target Date Funds

– Saving, Spending and Advice

– Profiles

Millennials who are eligible to participate in their employers’ 401(k) but do not (eligible but not contributing or non-savers)

Retirees who saved in 401(k)s

Retirement Saving and Spending Study RSS2 © 2015 Brightwork Partners LLC. All rights reserved

33

Methodology

3,026 working adults 18+ currently contributing to a 401(k) plan or eligible to contribute and having a balance of $1,000+

1,027 adults retired in the last one to five years with a Rollover IRA or left-in-plan 401(k) balance

– Active participants and retirees conducted online February 19 through March 3, 2015

255 Millennials (18–33 years old) working and eligible for a 401(k) plan at current employer but not contributing and do not have a balance in that 401(k)—eligible nonparticipants (ENPs)

– Conducted online March 4 through March 25, 2015


Representative national surveys of:

WORKERS’ 401(k) ACCOUNTS

55

Market Value of 401(k) Plan


Base: Workers

Thinking about your 401(k) plan, what would you say is the current market value of that account?

Workers By Generation

Total Workers (%)

Baby Boomer (%)

Gen X (%)

Millennial (%)

$1 to < $1,000 5 5 3 8

$1,000 to < $5,000 12 5 9 22

$5,000 to < $15,000 13 11 10 19

$15,000 to < $25,000 9 6 8 11

$25,000 to < $50,000 12 11 12 12

$50,000 to < $100,000 16 12 20 13

$100,000 to < $250,000 20 25 22 11

$250,000 to < $500,000 9 14 11 1

$500,000 or more 6 12 5 3

Average $ in thousands $134 $201 $138 $59

Median $ in thousands $51 $103 $67 $16

By Worker Generation

Q.7

66

Base: Millennial workers

Market Value of 401(k) PlanTotal Millennial Workers by Gender

Thinking about your 401(k) plan, what would you say is the current market value of that account?

Q.7

Millennial Workers

Total Workers (%)

Male(%)

Female(%)

$1 to < $1,000 8 6 11

$1,000 to < $5,000 22 19 27

$5,000 to < $15,000 19 18 21

$15,000 to < $25,000 11 11 11

$25,000 to < $50,000 12 13 11

$50,000 to < $100,000 13 16 9

$100,000 to < $250,000 11 14 7

$250,000 to < $500,000 1 1 1

$500,000 or more 3 4 1

Average $ in thousands $59 $74 $38

Median $ in thousands $16 $22 $11


77

Personal Deferral Rate


Base: Workers, expecting to contribute to their 401(k) (96%)

About what percentage of your personal income does this contribution represent?

Workers by Generation

Total Workers (%)

Baby Boomer (%)

Gen X (%)

Millennial (%)

1–2% 11 13 10 12

3–4% 16 13 15 19

5–6% 22 20 23 23

7–9% 13 10 15 11

10–14% 22 25 22 20

15–19% 8 10 6 8

20%+ 8 10 9 7

Average % 8 9 8 8

Median % 7 8 7 6


Q.41

88

401(k) Contribution Compared With Past 12 Months

Millennial

Gen X

Baby Boomer

Total Workers

11%

10%

6%

9%

49%

60%

73%

61%

40%

30%

21%

30%

Lower Same Higher


Base: Workers, at employer one year or longer (93%)

As a percentage of your income, how does that compare with the past 12 months?


Q.40

99


Recommended Contribution


Base: Workers

As far as you know, what percentage of your income do financial experts typically recommend someone your age save to make sure you have a comfortable retirement?

Workers by Generation

Total Workers(%)

Baby Boomer(%)

Gen X (%)

Millennial(%)

1–2% 3 1 2 5

3–4% 6 5 5 9

5–6% 13 7 12 20

7–9% 6 2 8 8

10–14% 26 20 31 24

15–19% 11 14 11 8

20–25% 9 13 8 8

Not sure 27 39 24 19

Average % 11 13 11 9

Median % 10 10 10 9

Q.42

1010


Increasing Your 401(k) Contribution

You got a raise

You had to increase your contribution rate to get the maximum matching contribution from your employer

You paid down debt you owe

You reduced your overall spending

You had an emergency fund for unexpected expenses

You learned that others of your age and income were saving a bigger proportion of their income than you are

51%

50%

49%

41%

31%

26%

40%

44%

36%

28%

19%

11%

52%

50%

53%

44%

34%

29%

61%

54%

56%

48%

40%

39%

Millennial Gen X Baby Boomer Total Workers


Base: Workers, “absolutely certain or very likely"

How likely would you be to increase the proportion of your income you contribute to your 401(k) if...

Q.43

1111

By Workers

Reasons for Contributing Below the Maximum

You don't need to save for retirement

You are paying back college loans

You are saving for a child's education

You don't want to lock up in a 401(k) money you might need soon

You are saving for retirement through other vehicles

You are paying back debt other than college loans

You're contributing all you can afford

81%

71%

66%

43%

48%

53%

18%

14%

18%

20%

41%

34%

27%

34%

6%

11%

14%

16%

18%

21%

48%

Not a Reason Minor Major


Base: Workers, contributing below the maximum allowed to 401(k) (89%)

As you probably know, you are contributing less to your 401(k) than the IRS permits you to defer from income. Please indicate below the extent to which any of the items below are a reason for this.

Q.44

1212

By Worker Generation Major Reasons for Contributing Below the Maximum








48%

21%

18%

16%

14%

11%

6%

46%

13%

22%

8%

4%

3%

4%

52%

23%

16%

15%

17%

10%

5%

45%

27%

15%

24%

19%

23%

9%



Base: Workers, contributing below the maximum allowed to 401(k) (89%)


Q.44

1313


Influence of Match on Contribution

Millennial

Gen X

Baby Boomer

Total Workers

10%

11%

25%

14%

31%

23%

11%

22%

59%

66%

64%

63%

On factors other than the match terms To take partial advantage of this match

To take full advantage of this match


Base: Workers, expecting an employer match (86%)

To what extent is your contribution rate determined by this match? You set your contribution rate...

Q.46

1414


Retirement Expectations

You will work at least part time in retirement

You will have to reduce your standard of living

You will have enough money to pay for health care

You will live as well or better as you did when you were working

You will be able to leave money to family members or charities

You will run out of money

You will be able to help out younger family members with tuition or housing expenses

51%

49%

49%

36%

29%

26%

24%

57%

56%

49%

31%

29%

27%

13%

49%

49%

44%

35%

24%

28%

24%

48%

42%

56%

43%

36%

22%

36%



Base: Workers

Given the retirement savings you have in place right now and the rate at which you are adding to those savings, which of the statements below do you expect will be true for you in retirement?

Q.53

1515

Base: Workers

Social SecurityBy Worker Generation

To what extent do you agree or disagree with each of the following statements about Social Security? "I expect Social Security to go bankrupt before I retire."


Total Workers (%)

Baby Boomer (%)

Gen X (%)

Millennial (%)

Net: Agree 47 28 51 60

Strongly agree 15 6 17 21

Agree 32 22 34 39

Disagree 31 35 31 25

Strongly Disagree 23 37 18 15

Net: Disagree 53 72 49 40

Q.38


AUTO-FEATURES AND TARGET DATE FUNDS

1717


True of Target Date Funds

Target date funds are managed by professionals meaning you will potentially get better results than you would on your own

These funds hold a mix of asset classes which changes over time so you don't have to make changes to your investments as you

get closer to retirement

It's better to hold additional funds in your 401(k) than just a target date fund

The fees and expenses on target date funds in 401(k)s are about the same as what you would pay for similar funds outside of your

401(k) account

These funds are designed as a suitable investment to get you not just to retirement, but through retirement as well

81%

80%

80%

73%

72%

86%

81%

84%

59%

63%

85%

81%

80%

78%

75%

73%

79%

78%

74%

74%



Base: Own target date funds (38%), excluding not applicable

As far as you know, which of the following statements are true and which are not true of the target date funds you hold?

Q.83

1818


True of Target Date Funds (cont.)

Because target date funds are approved for your 401(k) by your employer, they are probably of high quality

Target date funds are usually less risky than balanced funds

These funds are designed as a suitable investment to get you to retirement, but not through retirement

If you leave your job you can't take your target date fund with you, you have to sell it and reinvest with your new plan or on

your own

71%

66%

62%

50%

56%

56%

57%

36%

77%

69%

60%

47%

72%

68%

67%

59%



Base: Own target date funds (38%), excluding not applicable

As far as you know, which of the following statements are true and which are not true of the target date funds you hold?

Q.83

1919


Market Value and Allocation of Assets


Mean values unless otherwise indicated

Please indicate the current market value of these assets held by you or by other members of your household. Of this total, please indicate the percentage held in…

Workers By Generation $ % Allocation

Baby Boomer Gen X Millennial

Baby Boomer Gen X Millennial

Self $433 $339 $228

Other member of household 179 202 184

Total household (mean) $612 $540 $412

Total household (median) $291 $173 $67

Stock including employer stock or stock mutual funds excluding asset allocation funds 292 216 123 45 40 34

Bond or bond mutual funds excluding asset allocation funds 121 114 97 20 19 19

Asset allocation funds 83 102 90 13 19 20

Money market mutual funds or checking and savings accounts 117 109 103 23 22 28

Total household (mean) $612 $540 $412 100 100 100

Q.77-81

2020

By Workers and Retirees

Satisfaction with Investments Overall

Millennial

Gen X

Baby Boomer

Total Workers

Retirees

5%

3%

6%

5%

4%

16%

13%

13%

14%

10%

53%

56%

56%

55%

48%

26%

28%

25%

26%

38%

Not satisfied at all Not very satisfied Somewhat satisfied Very satisfied


All things considered, how satisfied are you with:

Q.84

2121


Automatic Enrollment Summary


As far as you recall, did you make a positive decision to enroll in your current 401(k) plan or were you enrolled automatically with the choice to opt out? As far as you recall, at what contribution rate were you automatically enrolled?


Total Workers (%)Baby Boomer

(%)Gen X

(%)Millennial

(%)

Enrolled automatically 15 14 13 20

Rate at which automatically enrolled

1% 24 34 15 24

2% 19 15 25 16

3% 20 14 23 21

4% 14 11 14 16

5% 11 8 12 12

6% 6 8 8 3

7% 1 1 1 2

Over 7% 5 10 2 5

Average % 3 3 3 3

Median % 3 3 3 3

Q.47, 48

Base: Workers enrolled automatically (15%)

2222


Opt Out Rate


Base: Workers enrolled automatically (15%)

At what contribution rate do you think you would have opted out instead of enrolling?


Total Workers (%)

Baby Boomer(%)

Gen X (%)

Millennial(%)

1% 0 0 0 0

2% 10 16 7 8

3% 10 9 9 11

4% 10 4 13 11

5% 12 16 11 10

6% 9 0 11 12

7% 8 5 6 13

8% 10 9 15 7

9% 2 0 2 2

10+% 31 41 27 27

Average % 7 7 7 6

Median % 7 8 6 6

Q.49

2323

Base: Total workers who were enrolled automatically with the choice to opt out

Note choices in Q49 were limited to 1+ the value provided in Q.48 in increments of 1 up to 10% or more.

Automatic Enrollment Rate by Rate Would Have Opted Out

Millennial Workers By Rate Would Have Opted Out Instead of Enrolling

At what contribution rate do you think you would have opted out instead of enrolling?

Automatic Enrollment Rate (%)

2% 3% 4% 5% 6% 7% 8% 9% 10%+ Average Median

N = 31 31 34 35 40 38 19 9 85 322 322

1% (24%) 32 21 23 13 2 2 0 0 8 4 3

2% (16%) 0 38 21 18 10 2 1 0 10 5 4

3% (21%) 0 0 9 14 22 12 5 1 38 7 7

4% (16%) 0 0 0 3 14 50 15 4 14 8 7

5% (12%) 0 0 0 0 27 12 10 9 42 8 9

6% (3%) 0 0 0 0 0 0 0 8 92 10 10

7% (2%) 0 0 0 0 0 0 0 9 91 10 10

Over 7% (5%) 0 0 0 0 0 0 44 0 56 9 10

Q.48


2424


Attitudes About Automatic Enrollment

I am satisfied that my employer automatically enrolled me

Employers who offer a match should set the automatic enrollment contribution rate high enough for partici-

pants to take full advantage of the match

I am satisfied with the contribution rate at which my employer enrolled me

I wish my employer had enrolled me at a higher con-tribution rate

I wish my employer had enrolled me at a lower con-tribution rate

78%

78%

69%

43%

29%

80%

80%

60%

34%

17%

77%

74%

71%

47%

31%

79%

80%

74%

47%

35%



Base: Workers enrolled automatically (15%), “agree completely or somewhat"

Please indicate the extent to which you agree or disagree with each of the statements below about automatic enrollment in 401(k) plans.

Q.51

2525


Automatic Escalation


Base: Workers

Is your contribution rate set at its current level unless you change it, or does it go up automatically each year unless you stop it?

Millennial

Gen X

Baby Boomer

Total Workers

81%

85%

90%

85%

19%

15%

10%

15%

Set at current level Goes up automatically each year

Q.50

SPENDING, SAVING, AND ADVICE

2727

By Workers

Dealing With Money

I avoid dealing with my financial situation because it is out of control

I have trouble meeting my monthly expenses

I would benefit from having someone help me with my spending and debt management

I commit to purchasing only what is on my shopping list when I go to the store

I shop by going to the store for pre-selected items that I have researched online

I save by any means necessary

I am more comfortable with saving and investing extra money than with spending it

I save money by cutting my flexible expenses, including entertainment, eating out and travel

I'm confident that my spending is well within the limits of what I can afford

I'm pretty good at living within my means

55%

42%

28%

9%

12%

7%

5%

5%

3%

2%

27%

34%

28%

30%

29%

26%

22%

19%

15%

11%

14%

19%

32%

47%

44%

48%

49%

51%

49%

47%

5%

6%

11%

14%

15%

18%

25%

25%

34%

40%

Not Accurately At All Not Very Accurately Somewhat Accurately Very Accurately


Please indicate how accurately each of the following statements describes you when it comes to money.

Q.12

2828


Dealing With Money



I save money by cutting my flexible expenses, including enter-tainment, eating out and travel



87%

82%

75%

74%

66%

89%

82%

72%

73%

63%

86%

82%

75%

74%

68%

88%

82%

79%

74%

67%



Describes me “very or somewhat accurately"

Q.12


2929


Dealing With Money (cont.)






61%

59%

43%

25%

18%

58%

49%

24%

17%

8%

61%

60%

47%

27%

22%

63%

68%

58%

29%

25%



Describes me “very or somewhat accurately"


Q.12

3030


Managing Spending

This year, you plan to make managing your financial situation a higher priority

This year, you plan to improve your budgeting process and bet-ter manage your spending to a budget

You track expenses carefully

You stick to a spending budget

You have a formal spending budget but it does not use spreadsheets or online applications

You have a formal spending budget which uses spreadsheets or online applications

Net: Have a written spending budget

74%

73%

71%

62%

47%

32%

67%

61%

56%

64%

55%

41%

20%

56%

75%

76%

73%

64%

49%

35%

69%

84%

86%

75%

67%

51%

42%

75%



"True"

When it comes to managing spending, which of the following statements are true or not true for you?

Q.15

3131


Credit Card Spending

Millennial

Gen X

Baby Boomer

Total Workers

32%

25%

19%

25%

68%

75%

81%

75%

Manage differently About the same way


In the year ahead, do you expect to manage your credit card spending and debt about the same way you managed it in the past year, or do you expect do manage your credit cards and credit card debt differently?

Q.13

3232


Managing Credit Cards Differently

Pay down existing credit card debt

Decrease your use of credit cards

Pay your credit cards in full each month

Stop using credit cards for new purchases

Refinance credit card debt at a lower interest rate

Increase your use of credit cards

Increase your credit card debt

69%

66%

38%

32%

14%

10%

4%

74%

82%

21%

26%

16%

1%

2%

65%

63%

42%

37%

13%

9%

5%

70%

59%

44%

29%

13%

16%

4%



Base: Expect to manage credit cards differently (25%)

Please indicate below how you expect to manage your credit card spending and debt in the year ahead.

Q.14

3333


#1 Funding Financial Priority

Paying down debt

Contributing to your 401(k) at the level required to take full advan-tage of a matching contribution your employer may offer but less

than the maximum contribution limit

Contributing to your 401(k) but below the level required to take full advantage of a matching contribution your employer may offer

Contributing to your 401(k) at the maximum contribution limit

27%

22%

21%

15%

26%

29%

11%

16%

27%

21%

23%

15%

28%

17%

27%

12%



Base: Workers, ranked at least one item (98%)

In terms of how your household is funding financial priorities this year, please rank which of the items below comes first, which comes second, which third and so on until the end of the list. If an item does not apply to you or isn’t a priority at all, enter a rank of zero..

Q.55

3434


#1 Funding Financial Priority (cont.)

Contributing to an emergency fund

Contributing to a Roth IRA

Contributing to a traditional IRA

Contributing to a health savings account (HSA) to fund some quali-fied medical expenses on a pre-tax basis

Contributing to a 529 college savings account or other educational savings vehicle

6%

4%

4%

2%

1%

7%

5%

3%

2%

1%

4%

3%

4%

1%

2%

7%

2%

3%

2%

1%



Base: Workers, ranked at least one item (98%)

In terms of how your household is funding financial priorities this year, please rank which of the items below comes first, which comes second, which third and so on until the end of the list. If an item does not apply to you or isn’t a priority at all, enter a rank of zero..

Q.55

3535


Sources of Funds for Emergency


If you suddenly faced an emergency that required more cash than you had on hand, to which of the following sources of funds would you turn?


Total Workers (%)

Baby Boomer(%)

Gen X (%)

Millennial(%)

Credit cards 52 43 53 57A special emergency fund account you have established for such needs 37 36 37 39

Family members or friends 35 17 35 55

Your after-tax personal savings and investments 28 36 24 25

A special emergency fund you mentally earmark for such needs 21 20 21 22

Home equity loan 16 19 18 11

Other bank loan 13 11 13 15Your balances in tax-deferred workplace retirement accounts 12 14 11 11

No emergency fund available 4 4 5 3

Q.19

3636


Advised

Millennial

Gen X

Baby Boomer

Total Workers

62%

65%

64%

64%

5%

1%

2%

2%

6%

3%

3%

26%

31%

35%

31%

Never had a paid financial advisorEver have both a paid traditional advisor and a paid robo advisor Ever have a paid robo advisor onlyEver have a paid traditional advisor only

Retirement Saving and Spending Study RSS2 © 2015 Brightwork Partners LLC. All rights reserved.

Do you currently have (In the past five years, have you had) a relationship with a professional financial advisor—that's someone you pay either through fees or commissions—to assist you in financial decisions, financial product selection, planning your retirement income or in selecting providers of financial services? To be clear, this could be either a traditional advisor or a so-called robo advisor (that’s to say an online, algorithm-driven, low-cost advice platform with limited personal interaction such as Betterment or WealthFront) or both?

Q.27, 28

3737


On Track to Meet Financial Goals

Millennial

Gen X

Baby Boomer

Total Workers

4%

7%

12%

7%

18%

25%

23%

22%

57%

53%

51%

53%

20%

16%

14%

17%

Not comfortable at all Not very comfortable Somewhat comfortable Very comfortable

All things considered, how comfortable are you that you are on track to meet your financial goals?

Q.31


3838


Financial Well-Being Compared With Parents

Millennial

Gen X

Baby Boomer

Total Workers

8%

8%

9%

8%

20%

26%

26%

24%

48%

48%

46%

47%

24%

19%

20%

21%

Much worse off financially Somewhat worse off financially Somewhat better off financially

Much better off financially

Compared with how your parents lived when they were the age you are now, would you say you are:

Q.30


3939


Perceived Job Security

Millennial

Gen X

Baby Boomer

Total Workers

38%

33%

39%

36%

32%

38%

35%

35%

22%

21%

18%

21%

7%

8%

8%

8%

Not concerned at all Not very concerned Somewhat concerned Very concerned

Base: Workers

How concerned are you that you may lose your job in the next 12 months:

Q.32


PROFILES OF WORKERS WITH 401(k)S: MILLENNIALS, GEN X, AND BABY BOOMERS

4141

By Workers

Age

Q. 2

How old are you?

Workers by Generations

Total Workers Baby Boomer Gen X Millennial

Birth years 1946–1964 1965–1980 1981–1996

Age at time of study 50–68 34–49 18–33

% % % %

Under 25 8 0 0 26

25–29 12 0 0 40

30–34 14 0 10 34

35–39 10 0 24 0

40–44 14 0 34 0

45–49 13 0 33 0

50–54 10 32 0 0

55–59 10 34 0 0

60–64 7 22 0 0

65–69 3 11 0 0

70+ 1 2 0 0

Average age 42 58 42 27

Q.2


4242

Millennial Workers By 401(k) Participation

Size of Organization



If you had to guess, about how many people work for your employer at all levels and in all locations across the United States?

Total Millennial Workers Active

in 401(k) (%)

99 or fewer 16

100 to 249 14

250 to 499 12

500 to 999 11

1,000 to 2,499 11

2,500 to 4,999 9

5,000 to 9,999 7

10,000 or more 20

Average # employees 3,398

Median # employees 830

4343


Work Status

Millennial

Gen X

Baby Boomer

Total Workers

13%

5%

10%

9%

87%

95%

90%

91%

Never retired, now working part-time Never retired, now working full-time

Base: Workers

Bearing in mind some people retire and go back to work, which one of the following phrases best describes your work situation?

Q.1


4444


Level of Qualification for Position

Millennial

Gen X

Baby Boomer

Total Workers

1%

1%

2%

1%

73%

74%

78%

75%

26%

24%

20%

24%

I am underqualified for this job My qualifications for this job are about right I am overqualified for this job

Base: Workers

How would you describe the fit between your skills, education, and experience and your current job?

Q.58


4545


Tenure at Current EmployerBase: Millennial workers

About how long have you worked for your current employer?


in 401(k) (%)

Under 1 year 10

1 year 7

2 years 17

3–4 years 26

5–9 years 30

10–14 years 8

15+ years 3

Average # 5

Median # 4


4646


Pay RaiseBase: Workers

How much of a raise (as a percent), if any, did you get in the past 12 months?


Total Workers (%)

Baby Boomer(%)

Gen X (%)

Millennial(%)

0% 25 33 23 18

1% 9 10 8 9

2% 16 15 18 15

3% 18 22 18 15

4% 6 6 5 6

5% 11 6 12 16

6–9% 7 4 6 12

10+% 8 5 10 10

Average % (including none) 3 2 3 4

Median % (including none) 3 2 3 3

Average % (excluding none) 4 4 4 5

Median % (excluding none) 3 3 3 4

Q.35


4747

Personal and Household Income and Total Debt

Total Workers

(%)

Baby Boomer

(%)Gen X

(%)Millennial

(%)N = 3,026 514 1,007 1,505

Average personal income ($ in thousands) $82 $85 $90 $69

Median personal income ($ in thousands) $70 $72 $79 $57

Average household income ($ in thousands) $127 $119 $139 $117

Median household income ($ in thousands) $113 $108 $120 $100

Total debt (average $) $48 $29 $62 $48

None 22 32 19 16

Any to <$5,000 9 7 8 11

$5,000 to <$50,000 34 35 35 33

$50,000 to <$500,000 20 16 23 21

$500,000 or more 1 0 1 1

Total Workers by Generation


MILLENNIALS WHO ARE ELIGIBLE TO PARTICIPATE IN THEIR EMPLOYERS’ 401(k) BUT DO NOT(ELIGIBLE NOT CONTRIBUTING OR NON-SAVERS)

4949


Age

Under 25

26%

25-2940%

30-3434%

Total Millennial Workers Active in 401(k)

Under 2532%

25-2938%

30-3431%

Millennials Eligible but not Contributing to 401(k)

Q.B


5050


Gender

Male59%

Female41%



What is your gender?

Male32%

Female68%


Q.A


5151


Education

High school or less24%

Some college

34%

Four year col-lege de-gree or more42%



What is your education level?

High school or less13%

Some col-lege47%

Four year college

degree or more41%


Q.103/ (ENP Q.48)


5252


Marital Status

Married or civil union42%

Di-vorced/ Sepa-rated/Wid-owed2%

Never married

43%

Living with partner13%



What is your marital status?

Married or civil union

35%

Divorced/ Separated/Widowed

4%

Never mar-ried46%

Living with partner15%


Q.102/ (ENP Q.47)


5353


Tenure at Current EmployerBase: Millennial workers

About how long have you worked for your current employer?


in 401(k) (%)

Millennials Eligible but not contributing to

401(k) (%)

Under 1 year 10 32

1 year 7 13

2 years 17 17

3–4 years 26 17

5–9 years 30 15

10–14 years 8 6

15+ years 3 0

Average # 5 3

Median # 4 2

Q.57/ (ENP Q.31)


5454


Pay RaiseBase: Millennial workers

How much of a raise (as a percent), if any, did you get in the past 12 months?

Total Millennial Workers Active in

401(k) (%)

Millennials Eligible but not contributing

to 401(k) (%) 0% 18 42

1% 9 12

2% 15 11

3% 15 9

4% 6 4

5% 16 8

6–9% 12 6

10+% 10 8

Average % 4 2

Median % 3 1

Average % (excluding none) 5 4

Median % (excluding none) 4 3

Q.35/ (ENP Q.20)


5555


Student Loan DebtBase: Millennial workers

How much debt does your household have when it comes to student loans?

Total Millennial Workers Active in

401(k) (%)

Millennials Eligible but not contributing to

401(k) (%)

None 49 34

Less than $1,000 3 2

$1,000 to < $5,000 11 10

$5,000 to < $15,000 10 14

$15,000 to < $25,000 9 9

$25,000 to < $50,000 8 16

$50,000 to <$500,000 9 15

$500,000 or more 0 0

Average $ in thousands (excluding None) $31 $39

Median $ in thousands (excluding None) $16 $22

Q.93/ (ENP Q.39)


5656


Direction of Debt

Millennials Eligible not Con-tributing to 401(k) (83%)

Total Millennial Workers Active in 401(k) (80%)

8%

14%

26%

37%

28%

35%

26%

11%

12%

4%

Much smaller Somewhat smaller About the same Somewhat larger Much larger

Base: Millennial workers, have $1,000 or more in debt

Thinking about this debt all together, that’s home equity loans, car loans, credit card debt, student loans and other consumer credit, how does that amount compare to a year ago?

Q.94/ (ENP Q.40)


5757


Dealing With Money




I save money by cutting my flexible expenses, including entertainment, eating out and travel







41%

35%

30%

28%

22%

20%

18%

15%

8%

8%

23%

21%

16%

38%

15%

13%

19%

12%

13%

7%

Millennials Eligible but not Contributing to 401(k) Total Millennial Workers Active in 401(k)

Base: Millennial workers, describes me “very accurately"


Q.12/ (ENP Q.9)


5858

Millennial Workers By 401(k) ParticipationMajor Reasons for Contributing Below the Maximum








45%

27%

24%

23%

19%

15%

9%

38%

42%

22%

35%

10%

8%

4%

Millennials Eligible but not contributing to 401(k) (98%) Total Millennial Workers Active in 401(k) (88%)

Base: Millennial workers, not contributing or expect to contribute below the maximum allowed to 401(k)


Q.44/ (ENP Q.28)


5959





14%

8%

28%

20%

44%

48%

13%

24%

Much worse off financially Somewhat worse off financially

Somewhat better off financially Much better off financially



Q.30/ (ENP Q.16)


RETIREES WHO SAVED IN 401(k)S

6161

By Retirees

Age

Under 50 50-54 55-59 60-64 65-69 70-74 75+

8%

2%

8%

25%

38%

13%

6%

Average Age 63

How old are you?

Q.38


6262

By Retirees

How Long Ago Retired

128%

220%3

20%

412%

519%

Base: Retirees; average: 2.7 years, median 3.0 years

About how long ago did you retire:

Q.8


6363

By Retirees

Work Status

Retired and not working or looking for work

68%

Retired but now looking for work9%

Full-time as an employee3%

Part-time as an employee10%

Full-time as a contractor2%

Part-time as a contractor6%

Base: Retirees

Bearing in mind that some people retire and then go back to work, which one of the following phrases best describes your work situation?

Retired but now working (22%)…

Q.1


6464

By Retirees

Relative Earnings

A great deal more 7%

Somewhat more11%

About the same18%

Somewhat less24%

A great deal less40%

Base: Retirees working full or part-time (22%)

Hour-for-hour worked, how much money do you make today compared with what you made before you retired?

Q.64


6565

By Retirees

Relative Hours

Working much longer than you did8%

Working somewhat longer than you did

5%

Working about as long as you did9%

Working somewhat less than you did

25%

Working much less than you did 53%


In terms of hours, are you:

Q.65


6666

By Retirees

Rejoined the Workforce Because...

Mainly because you wanted to

69%

Mainly because you had to31%


When you rejoined the workforce after retiring did you do so:

Q.66


6767

By Retirees

Looking for Work Because...

Mainly because you want to73%

Mainly because you have to27%

Base: Retirees looking for work (9%)

Are you looking for work:

Q.67


6868

Trend by Retirees

Has a Withdrawal Plan

2015

2014

51%

48%

Base: Retirees

Thinking about your investable assets—that’s your stocks, stock mutual funds, bonds, bond mutual funds, asset allocation funds including target date funds, money market mutual funds and other cash equivalents whether held in a 401(k), an Individual Retirement Account or outside the workplace savings system and any savings and checking accounts you may have—do you have a withdrawal plan under which you withdraw and use as income a certain portion of these assets each year?

Q.70


6969

By Retirees

% Investable Assets Withdrawn

None 1% 2% 3% 4% 5% 6%-7% 8%-10% 11%+

36%

11%

9%7% 7%

10%

3%

9% 9%

Base: Retirees; average 5.5% (excluding none)

About what percentage of your investable assets did you withdraw in the past 12 months?

Q.71


7070

By Retirees

Organizing Retirement Income

I don't plan to use my 401(k) or IRA balances until I am required to do so at age 70 1/2

I wouldn't use my 401(k) or IRA balances at all if I weren't required to

I live mainly on Social Security or a pension so I only withdraw investable assets on an ad hoc basis

I plan to live off the interest and dividends from my port-folio and not invade the principal until later in retirement

I pace my withdrawals from my investable assets to match my expenses

I take a specific percentage of my investable assets each year

67%

63%

63%

56%

49%

37%

"Very or Somewhat closely" Base: Retirees

Here are several ways of organizing income in retirement. For each, please indicate how closely it describes your situation.

Q.72


7171

By Workers and Retirees

Sources of Retirement Income (Mean %)Base: Including none, items sum to 100%

Approximately what percentage of your household income do you expect this source to provide in retirement? Approximately what percentage of your household income does this provide?


Retirees(%)

Total Workers

(%)

Baby Boomer

(%)Gen X

(%)Millennial

(%)

Social Security 42 27 36 26 21

A traditional DB pension plan or cash balance plan 18 7 9 6 6

Earnings from employment including self-employment 10 6 5 5 7

Income from personal investment and savings accounts apart from IRAs and Roth IRAs 7 6 7 6 5

Income from IRAs or Roth IRAs 7 6 7 6 5

Other workplace retirement plans 6 1 1 1 1

401(k), Roth 401(k), 403(b), 457, profit sharing, money purchase or other type of TDDCRP provided through your workplace 4 40 30 42 47

Income from an inheritance 2 3 1 3 3

Annuities you purchased on your own outside work 2 2 2 2 2

Annuities you purchased through your workplace 1 1 0 1 1

Income from the sale of your primary residence 0 1 1 1 2

SEP or SIMPLE retirement plan 0 1 0 1 1

Insurance payouts 0 0 0 0 1

Q.37, 63


7272

By Retirees

Compared With When Working

Living about as well as you did then

46%

Living comfortably but less well than you did then

34%

Living better than you did then12%

Struggling to make ends meet8%

Base: Retirees

Compared with when you were working, would you say you are now:

Q.61


7373

By Retirees

Proportion of Annual Income Replaced

None (0%) 1-20% 21-40% 41-60% 61-80% 81-99% 100%

1%

6%

11%

24%

30%

15% 14%

Base: Retirees; Average: 67%

About what proportion of the annual income this household had before you retired does this household have today?

Q.68


7474

Trend by Retirees

True of My Retirement

I have enough money to pay for health care

I live as well or better as I did when I was work-ing

I will be able to leave money to family members or charities

I will have to reduce my standard of living

I will work at least part time in retirement

I will be able to help out younger family members with tuition or housing expenses

I will run out of money

66%

54%

47%

32%

27%

24%

11%

Base: Retirees

Given your savings, income, and expenditures, which of the following statements are true of your retirement?

Q.69


7575

Trend by Retirees


2014

2015

5%

5%

20%

20%

44%

44%

30%

31%

Much worse off financially Somewhat worse off financially Somewhat better off financially

Much better off financially

Note only asked of retirees in 2014

Base: Retirees


Q.30


7676

Trend by Retirees

On Track to Meet Financial Goals

2014

2015

6%

3%

16%

12%

51%

56%

27%

29%

Not comfortable at all Not very comfortable Somewhat comfortable Very comfortable

All things considered, how comfortable are you that you are on track to meet your financial goals?

Q.31


7777

Trend by Retirees

Satisfaction in Retirement

2014

2015

3%

2%

9%

10%

45%

46%

44%

42%

Not satisfied at all Not very satisfied Somewhat satisfied Very satisfied

Base: Retirees

All things considered, how satisfied would you say you are with your retirement so far:

Q.60


Economy & Finance

Generational Retirement Trends Study - 2015