Retirement Attitudes Segmentation Survey
2013
AARP Research
Retirement Attitudes Segmentation Survey
Report Prepared by S. Kathi Brown
Copyright©2013
AARP
AARP Research
601 E Street, NW
Washington, DC 20049
http://www.aarp.org/research/
Reprinting with Permission
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Table of Contents
Section
Page #
Background and Objectives 5
Methodology
6
Overview of the Retirement Segments
7
Detailed Findings
12
Attitudes Related to Retirement 13
Expectations of Working in Retirement 26
Preparations to Date and Assistance Needed 35
Conclusions and Implications 48
Appendix A: Selected Findings by Demographics 51
Appendix B: Are Demographic Characteristics Predictive of Segments?
70
Appendix C: Demographic Profile of Respondents
74
Notes
76
Note: Annotated Questionnaire is available as a separate document.
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AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services. A trusted source for lifestyle tips, news and educational information, 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 Spanish­language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. The AARP Foundation is an affiliated charity that provides security, 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 the U.S. Virgin Islands. Learn more at www.aarp.org.
AARP collected the data for this project through an online survey administered by GfK Custom Research to its national, probability­based KnowledgePanel. Context­Based Research Group provided feedback during the questionnaire design and analysis stages. S. Kathi Brown of AARP’s Research Center wrote the report. The author would like to thank the following AARP staff for their valuable input: Leslie Boissiere, Laura Bos, Kelley Coates­
Carter, Jeff Love, Rebecca Perron, and Jean Setzfand. Special thanks to Chuck Rainville and Sarah Conroy for their work on the segmentation analysis and to Cheryl Barnes for proofing the report.
All media inquiries about this report should be directed to AARP’s Media Relations at (202) 434­2560. Inquiries from others should be directed to S. Kathi Brown at (202) 434­6296 or [email protected].
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Background and Objectives
• This is the second part of a two­part study designed to examine:
– Pre­retirees’ views of retirement
– The steps they are taking to prepare
– The opportunities for helping them
• The first phase, conducted in December 2010­February 2011, was an ethnographic study of 29 adults ages 52­65.
• The second phase, a nationally representative survey conducted in November and December 2012, was designed to validate and expand on the findings from the ethnography.
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Methodology
• Nationally representative, probability­based online panel
• 2480 respondents – Ages 50­65, not yet fully retired
– Primary/shared responsibility for household financial decisions
– Household income $40,000­$124,999
– High school degree or more
– No traditional pension plan
– Not in poor health/not unable to work due to disability
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Overview of the Retirement Segments
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Four Retirement Segments
Cautious Clockwatchers, 33%
Doubters, 17%
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Pro­Active
Self­Actualizers, 24%
Day­to­Day Life Embracers, 27%
8
Attitudes Used to Determine the Segments
Optimism and Material Resources
Creativity and Social Connections
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Planning and Goal­Setting
Leisure and the Retirement Transition
9
Overview of the Retirement Segments: How do they view retirement?
Doubters
Day­to­Day Life Cautious Proactive Self­
(24%)
Embracers
(17%)
(27%)
(33%)
Optimism and Material Resources
Planning and Goal­Setting Skills
Creativity and Social Connectedness
More in their material doubtful than confident in confident in their material confident than doubtful resources
their material resources
resources
about their material resources
Exceedingly engaged in Least engaged in planning Limited engagement in Slightly disengaged from
planning and goal­setting and goal­setting planning and goal­setting planning and goal­
setting Leisure and the Retirement Transition
Likely to view retirement as a time of leisure that includes work conducted primarily for non­
financial reasons. Most will retire gradually, but some will do so all at once.
Strongly agree that Strongly agree that retirement is a time to be retirement is a time to be creative and/or social
creative and/or social
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Similar to Self­Actualizers except that reasons for working in retirement are more likely to be financial and non­financial. Most will gradually retire; very few will do so all at once.
Least oriented toward creativity; doubt retirement will allow cultivation of social connections yet acknowledge their importance Least likely to see retirement as a time to stop working completely; do not expect retirement to be a time of leisure. Nearly half envision no retirement transition.
Not as oriented toward social connectedness and creative pursuits as Self­Actualizers or Day­
to­Day Embracers.
Hoping for a complete retirement at a certain date and envisioning it as a time of leisure.
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Overview of the Retirement Segments: Who are they? • Oldest (65% ages 55­65)
• Most well­educated (48% Bachelors+)
• Highest income (median: $81,630)
• Highest savings (70% > $100,000)
• Higher self­employment (20%); most likely to be retired and working (11%)*
• Most likely to be female (57%)
• Youngest segment (49% ages 50­54)
• Lower income (median: $70,1600)
• Lower savings (38% > $100,000)
• Employment status resembles overall sample (77% employed full­time; 15% self­employed)*
Proactive Self­
Actualizers
Day­to­Day Life Embracers
• Most likely to be male (55%)
• Least educated (72% no Bachelors)
• Moderate income (median: $73,710)
• Moderate savings (51%> $100,000)
• Most likely to be working full­time (85%); least likely to be self­employed (9%)*
• Comparatively male (53%)
• Less educated (69% no Bachelors)
• Lowest income (median: $63,190)
• Lowest savings (29% > $100,000)
• Most likely to be self­employed (30%); higher likelihood of working part­time (21%)*
Cautious Clockwatchers
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Doubters
* Percentages who are self­employed and percentages who fall into other employment categories are not mutually exclusive. For example, a self­employed Proactive Self­
Actualizer who is “working in retirement” would be counted in the 20% and the 11%.
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Detailed Findings
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Attitudes Related to Retirement
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Optimism and Material Resources
Proactive Self­Actualizers are most confident about retirement finances; Doubters are least confident.
% Strongly /Somewhat Agree
27%
Retirement: financial
hardship to me
Cautious
Clockwatchers
(n=708)
72%
49%
10%
Doubters (n=408)
37%
42%
Confident I will have
enough money in
retirement
7%
Day­to­Day
Embracers (n=716)
22%
71%
37%
30%
79%
May never be able to
afford to stop working
Pro­Active Self­
Actualizers (n=628)
65%
15%
Total (n=2,480)
44%
0%
20%
40%
60%
80%
Chart shows responses to Q5_d, Q22_d, and Q22_f. Response choices shown represent top 2 options on a 5­point scale.
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Optimism and Material Resources
Most in each segment are relatively pleased with their lives, except Doubters.
% Strongly /Somewhat Agree
Cautious
Clockwatchers
(n=708)
65%
Doubters (n=408)
35%
Overall I am pleased with
the way things are going in
my life
66%
Day­to­Day
Embracers (n=716)
82%
Pro­Active Self­
Actualizers (n=628)
64%
Total (n=2,480)
0%
20%
40%
60%
80%
100%
Chart shows responses to Q1a. Response choices represent top 2 options on a 5­point scale.
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Optimism and Material Resources
Pro­Active Self­Actualizers are most optimistic; Doubters least so.
% Very /Somewhat Optimistic
Cautious
Clockwatchers
(n=708)
Doubters (n=408)
51%
8%
Optimism about
retirement years
Top chart shows responses to Q4. Response choices represent top 2 options on a 5­point optimism scale.
38%
82%
Day­to­Day
Embracers (n=716)
47%
0%
20%
40%
60%
80%
Pro­Active Self­
Actualizers (n=628)
100%
% Strongly /Somewhat Agree
Total (n=2,480)
65%
I am optimistic about the
future and believe that
things will work out for me
32%
78%
83%
67%
42%
73%
I am unsure of what the
future holds for me
54%
37%
49%
0%
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20%
40%
60%
80%
Bottom chart shows responses to Q1c and Q1d. Response choices represent top 2 options on a 5­point agreement scale.
100%
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Planning and Goal­Setting
Pro­Active Self­Actualizers are overwhelmingly planners; other segments less so.
% Strongly /Somewhat Agree
Cautious
Clockwatchers
(n=708)
50%
48%
40%
I consider myself to be a
planner and plan carefully for
the future
86%
Doubters (n=408)
55%
38%
35%
31%
I know what I want out of life
and have a plan for making it
happen
Day­to­Day
Embracers (n=716)
82%
46%
Pro­Active Self­
Actualizers (n=628)
47%
I have a good sense of the
amount of money I need to
save for retirement
37%
34%
84%
Total (n=2,480)
50%
0%
20%
40%
60%
80%
100%
Chart shows responses to Q20_a, Q20_d, Q22_a. Response choices shown represent top 2 options on a 5­point scale.
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Planning and Goal­Setting
Day­to­Day Life Embracers are especially likely to avoid planning.
% Strongly /Somewhat Agree
13%
12%
I cannot find the time to plan
for the future
1%
I have not spent much time
thinking about what I'll do in
retirement
Cautious
Clockwatchers
(n=708)
22%
12%
Doubters (n=408)
47%
25%
8%
59%
I know what I want out of life
but don't have a specific plan
to achieve it
36%
16%
I rarely plan because many
things are a matter of luck
anyhow
3%
0%
Day­to­Day
Embracers
(n=716)
37%
43%
71%
43%
12%
10%
16%
Pro­Active Self­
Actualizers
(n=628)
Total (n=2,480)
10%
20%
40%
60%
80%
Chart shows responses to Q20_e, Q21ab_c, Q20_c, 20_b. Response choices shown represent top 2 options on a 5­point scale.
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Creativity and Social Connections
Day­to­Day Embracers and Pro­Active Self­Actualizers most likely to equate retirement with creative pursuits.
% Strongly /Somewhat Agree
43%
27%
Retirement means more time
to devote to my creative side
79%
73%
57%
75%
26%
21%
Retirement means opportunity
to pursue work I'm passionate
about
67%
20%
40%
Day­to­Day
Embracers
(n=716)
Pro­Active Self­
Actualizers
(n=628)
62%
27%
0%
92%
92%
68%
63%
45%
Retirement is a chance to
pursue interests/hobbies I
never had time for
Doubters
(n=408)
70%
36%
Retirement means more time
to pursue my interests/hobbies
Cautious
Clockwatchers
(n=708)
60%
80%
Total (n=2,480)
84%
85%
100%
Chart shows responses to Q5_h, Q5_f, Q5_s, Q5_g. Response choices shown represent top 2 options on a 5­point scale.
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Creativity and Social Connections
Social element of retirement especially important to Day­to­Day Embracers and Self­Actualizers. % Strongly /Somewhat Agree
Cautious
Clockwatchers
(n=708)
47%
24%
Retirement means more
opportunity for socializing
74%
74%
Doubters
(n=408)
57%
53%
61%
Social connections will be
important in retirement
83%
86%
70%
90%
89%
Emotional health will be
important in retirement
99%
100%
94%
0%
20%
40%
60%
80%
Day­to­Day
Embracers
(n=716)
Pro­Active Self­
Actualizers
(n=628)
Total (n=2,480)
100%
Chart shows responses to Q5_r, Q6_b, Q6_a. Response choices shown represent top 2 options on a 5­point scale.
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Leisure and the Retirement Transition
Most (except Doubters) view retirement as a time of leisure; however, few see it as a time to stop working completely.
% Strongly /Somewhat Agree
33%
5%
Retirement is a time to stop
working completely
Cautious
Clockwatchers
(n=708)
18%
23%
22%
20%
Retirement is a time of
leisure
71%
52%
20%
64%
65%
58%
56%
0%
Day­to­Day
Embracers
(n=716)
Pro­Active Self­
Actualizers
(n=628)
64%
20%
Retirement means fewer
obligations
83%
85%
53%
11%
Retirement is a time to
indulge myself
Doubters
(n=408)
78%
40%
60%
Total (n=2,480)
68%
80%
100%
Chart shows responses to Q5_l, Q5_p, Q5_o, and Q5_n. Response choices shown represent top 2 options on a 5­point scale.
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Leisure and the Retirement Transition
Cautious Clockwatchers are most likely to expect to begin retirement all at once; Doubters are most likely to view the retirement transition as not applicable.
“Which best describes how you expect to make the move into retirement / how you made the move into retirement?”
33%
7%
8%
All at once
Doubters
(n=408)
26%
20%
52%
46%
Gradually
69%
63%
58%
15%
Not applicable / Same as
pre­retirement life
11%
0%
Cautious
Clockwatchers
(n=708)
46%
22%
Day­to­Day
Embracers
(n=716)
Pro­Active Self­
Actualizers
(n=628)
Total (n=2,480)
21%
20%
40%
60%
80%
Chart shows % of respondents who “strongly agree” or “somewhat agree” with Q10a and Q10b combined.
(Q10a (pre­retirees): “Which best describes how you expect to make the move into retirement?”; Q10b (retirees who were working or looking for work): “Which best describes how you made the move into retirement?”)
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Explanations of “All­At­Once” Retirement Transitions:
Top 5 explanations from those who expect to retire “all at once.”*
Pro­Active Self­Actualizers
Cautious Clockwatchers
(26%, n=169)
(33%, n=251)
• No plans of working (27%)
• Volunteer work/help people (20%)
• Hobbies (17%)
• Travel (15%)
• Socialize (13%)
• No plans of working (24%)
• No/less stress (13%)
• Freedom to do as please (10%)
• Work part­time (9%)
• Travel (9%)
* For respondents who selected “All At Once” when answering Q10a or Q10b, slide shows most frequent responses to the follow­up questions (Q11a and Q11b): “In your own words, please explain why you chose the response above.”
Responses from Day­to­Day Embracers and Doubters are not shown as fewer than 10% of these two segments plan to retire “all at once.” Green = more likely than all respondents to offer this explanation.
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Explanations of “Gradual” Retirement Transitions:
Top 5 explanations from those who expect to retire “gradually.”*
Pro­Active Self­Actualizers (63%,n=401)
• Work part­time (44%)
• Gradually phase out of work (16%)
• Work for self (14%)
• Keep working due to financial need (13%)
• Travel (13%)
Day­to­Day Embracers (69%, n=489)
• Work part­time (39%)
• Keep working due to financial need (22%)
• Enjoy working/keep working (20%)
• Financial status (14%)
• Gradually phase out of work (13%)
Doubters (46%, n=196)
• Keep working due to financial need (37%)
• Work part­time (23%)
• Enjoy working/keep working (13%)
• Financial status (13%)
• Government/changes in government programs (9%)
Cautious Clockwatchers (52%, n=363)
• Work part­time (38%)
• Gradually phase out of work (18%)
• Keep working due to financial need (12%) • Financial status (10%)
• Keep busy (7%)
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* For respondents who selected “Gradual” when answering Q10a or Q10b, slide shows most frequent responses to the follow­up questions (Q11a/ Q11b): “In your own words, please explain why you chose the response above.” Green = more likely than all respondents to offer this explanation; Red=less likely than all respondents to offer this explanation. 24
Explanations of “Not Applicable” Retirement Transitions:
Top 5 explanations from those who say retirement will be/is about the same as life before retirement.*
Doubters (46%, n=185)
• Keep working due to financial need (35%)
• Enjoy working/keep working (23%)
• May not be able to retire (16%)
• No change expected (7%)
• Keep busy (5%)
Cautious Clockwatchers (15%, n=93)
• Keep working due to financial need (18%)
• Enjoy working/keep working (16%)
• Financial status (12%)
• Work part­time (6%)
• Family time (6%)
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Day­to­Day Embracers (22%, n=150)
• Enjoy working/keep working (31%)
• Keep working due to financial need (25%)
• Financial status (13%)
• No change expected (13%)
• Keep busy (11%)
* For respondents who selected “Not Applicable” when answering Q10a or Q10b, slide shows most frequent responses to the follow­up questions (Q11a/ Q11b): “In your own words, please explain why you chose the response above.” Responses from Pro­Active Self­Actualizers are not shown as just 11% of this segment selected “not applicable” to describe their retirement transition.
Green = more likely than all respondents to offer this explanation.
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Expectations of Working in Retirement
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Expected Employment in Retirement
Most respondents expect to work part­time in retirement. Doubters are the most likely to expect to work full­time (36% of Doubters vs. 3­13% of the other segments). Clockwatchers and Self­Actualizers are more likely than the others to expect to not work at all (26­28% vs. 5­7% of the other segments). Self­Actualizers and Day­to­Day Embracers are the most likely to expect to work for themselves.
Expected Employment in Retirement 1
(Base: Respondents who have never retired)
5%
7%
Not work at all
Cautious
Clockwatchers
(n=653)
26%
17%
28%
Doubters
(n=387)
57%
50%
63%
48%
55%
Work part­time
9%
13%
3%
13%
Work full­time
Day­to­Day
Embracers
(n=676)
36%
8%
9%
Start your own business/work
for yourself
Pro­Active Self­
Actualizers
(n=557)
15%
18%
12%
2%
1%
2%
3%
2%
Work (miscellaneous)
0%
Total (n=2,284)
20%
40%
60%
80%
100%
Chart shows responses to Q12 and Q12b. (Q12: “Which of these best describes what you think you will be doing when you retire?” For those respondents whose answer to Q12 was unclear, the chart reflects responses to Q12b: “When you retire, do you expect to do any work for pay or work for other type of compensation?”)
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Complete Retirement Eludes Many Only half of respondents envision stopping work completely at some point (16% expect to not work at all in retirement, 34% expect to work but eventually stop). A full quarter expects to work indefinitely, while another quarter is uncertain as to whether they will ever stop working. Doubters (59%) are especially likely to expect to work indefinitely, and Day­to­Day Embracers (40%) are the most likely to express uncertainty. Expectations of Ever Retiring Completely 2
(Base: All Respondents)
Not work at all in retirement
24%
4%
7%
16%
Work in retirement but
eventually retire fully
Cautious
Clockwatchers
(n=708)
25%
45%
13%
31%
38%
34%
15%
Work indefinitely/never retire
Don't know
59%
23%
16%
25%
16%
Doubters
(n=408)
24%
22%
25%
Day­to­Day
Embracers
(n=716)
Pro­Active Self­
Actualizers
(n=628)
40%
Total (n=2,480)
0%
20%
40%
60%
Chart shows expectations of ever retiring completely based on combining responses to Q12, Q12b, and Q13. Q12: “Thinking about your employment status in later years, which of these best describes what you think you will be doing when you retire. “ Q12b: “When you retire, do you expect to do any type of work for pay or work for other type of compensation?” Q13: “At some point in the future, do you expect to retire fully and not work at all?” AARP Research
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Age at Which Expect to Stop Working
Among those who expect to stop working completely one day, Doubters and Day­to­Day Embracers expect to retire the latest while Pro­Active Self­Actualizers and Clockwatchers expect to retire the earliest. In fact, over one third of Doubters and Day­to­Day Embracers don’t expect to stop working until after 70 compared to just 13% of Clockwatchers and 20% of Pro­Active Self­Actualizers.
Age at Which Expect to Stop Working
(Base: Respondents who expect to stop working eventually)
13%
Age at Which Expect to Stop Working (Median)
Cautious Clockwatchers
67
Doubters
70
Day­to­Day
Embracers
70
Pro­Active Self­
Actualizers
After 70
34%
35%
20%
23%
Doubters
(n=190)
24%
67
42%
33%
70
Cautious
Clockwatchers
(n=624)
23%
28%
16%
14%
17%
19%
66­69
8%
65 or Younger
26%
Pro­Active
Self­
Actualizers
(n=544)
Total
(n=1,925)
38%
16%
30%
0%
Day­to­Day
Embracers
(n=557)
20%
40%
40%
60%
Slide shows responses to Q14: “At what age do you expect to retire fully and not work at all?”
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Reasons for Working in Retirement
Remaining mentally active and needing money are the top two reasons for expecting to work in retirement. Doubters and Day­to­Day Embracers are most likely to cite need for money, while Pro­Active Self Actualizers are the least likely. The #1 reason cited by Pro­
Active Self­Actualizers is to remain mentally active.
Top Reasons for Expecting to Work/Working in Retirement (Base: Working (or looking for work) in retirement, or expect to work in retirement or never retire)
% Identifying Each as “Major Factor”
57%
54%
Desire to stay mentally active
66%
76%
75%
49%
I'll need the money
75%
31%
Desire to stay physically active
56%
Desire to do something fun
39%
48%
0%
20%
84%
40%
Day­to­Day
Embracers
(n=681)
68%
66%
59%
44%
44%
Desire to remain productive or
useful
29%
Doubters
(n=385)
60%
52%
47%
Pro­Active Self­
Actualizers
(n=485)
68%
65%
Total (n=2,086)
61%
60%
60%
Cautious
Clockwatchers
(n=524)
80%
100%
Chart shows Q15 items eliciting highest agreement: “The following is a list of reasons why some people continue to work in retirement. For each, please indicate whether it is a major factor, a minor factor, or not a factor at all in your decision to work in retirement.”
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Reasons for Working in Retirement (cont.)
Just over half of Doubters and Day­to­Day Embracers cite the need for health benefits, compared to just over 1 in 4 Pro­Active Self­Actualizers. The desire to help other people motivates about half of Pro­Active Self­Actualizers and Day­to­Day Embracers but only about 1 in 4 Doubters and Clockwatchers.
More Reasons for Expecting to Work/Working in Retirement
(Base: Working (or looking for work) in retirement, or expect to work in retirement or never retire)
% Identifying Each as “Major Factor”
40%
I'll need the health benefits
28%
39%
26%
24%
Desire to be around people
49%
52%
Day­to­Day
Embracers
(n=681)
46%
41%
35%
19%
22%
Desire to learn new things
Doubters
(n=385)
45%
25%
28%
Desire to help other people
57%
55%
33%
Pro­Active Self­
Actualizers
(n=485)
44%
46%
11%
8%
Desire to pursue a dream
Total (n=2,086)
28%
27%
19%
0%
20%
40%
Cautious
Clockwatchers
(n=524)
60%
80%
100%
Chart shows Q15 items eliciting lowest agreement: “The following is a list of reasons why some people continue to work in retirement. For each, please indicate whether it is a major factor, a minor factor, or not a factor at all in your decision to work in retirement.”
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Comparing Pre­Retirement Work to Retirement Work Of all working retirees and pre­retirees who expect to work in retirement or never retire, over half say their retirement work is/will be very or somewhat similar to their pre­retirement work. Doubters are particularly likely to expect few changes between their pre­retirement and retirement work, with 70% saying retirement work will be very or somewhat similar. One in four Pro­Active Self­Actualizers expect their retirement work will be “very different, ” compared to fewer than 1 in 5 in each of the other segments.
Pre­Retirement Work vs. Retirement Work
(Base: Working in retirement, or expect to work in retirement or never retire)
18%
14%
16%
Very Different
25%
18%
Doubters
(n=384)
30%
15%
Somewhat Different
Cautious
Clockwatchers
(n=521)
19%
26%
29%
28%
Somewhat Similar
27%
30%
34%
22%
Very Similar
Day­to­Day
Embracers
(n=678)
24%
Pro­Active Self­
Actualizers
(n=482)
43%
24%
Total (n=2,076)
29%
28%
0%
20%
40%
60%
Chart shows responses to Q16 and Q18: “How does the work that you are doing in retirement compare to the work that you did before you retired? / How do you expect the work that you do in retirement to compare to the work that you currently do?”
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32
Retirement Work Among those who are already working in retirement or expect to work in retirement, Pro­
Active Self­Actualizers are the most likely to expect to work in “professional” occupations while Clockwatchers are the least likely. Day­to­Day Embracers are especially likely to expect to work in “service” jobs and “clerical” jobs. Most Common Types of Work (Expected) in Retirement
(Base: Working in retirement, or expect to work in retirement or never retire)
Cautious
Clockwatchers
(n=521)
12%
15%
18%
25%
17%
14%
14%
21%
19%
17%
11%
12%
11%
12%
11%
10%
7%
14%
8%
10%
Professional (e.g. teacher,
consultant, accountant)
Service (e.g. social services, personal
care, health aide, caterer/cook)
Sales (e.g. sales, retail, insurance
agent)
Clerical (e.g. clerical, customer
service, bookkeeper)
Doubters
(n=384)
Day­to­Day
Embracers
(n=678)
Pro­Active Self­
Actualizers
(n=482)
5%
10%
5%
7%
6%
Craftsman/Foreman (e.g.
handyman, carpenter, mechanic)
0%
Total (n=2,076)
20%
40%
60%
Chart shows most common types of responses to Q17 and Q19 (open­ended questions): What type of work are you currently doing in retirement? / What type of work do you think you will do in retirement?
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33
Retirement Work (cont.)
Among those who are already working in retirement or expect to work in retirement, Clockwatchers
are most likely to be unsure of the type of work they will do in retirement, Day­to­Day Embracers are most likely to expect to engage in a creative field, and Doubters are most likely to expect to continue their current work or be open to any type of work.3
Work (Expected) in Retirement: Noteworthy Comments
(Base: Working in retirement, or expect to work in retirement or never retire)
8%
12%
7%
7%
9%
Continue with/similar to
current work
Doubters
(n=384)
3%
2%
2%
6%
3%
1%
3%
9%
5%
5%
1%
6%
3%
3%
3%
Self­employed/contract work
Creative work
Open to any work
Day­to­Day
Embracers
(n=678)
Pro­Active Self­
Actualizers
(n=482)
13%
5% 10%
4%
8%
Don't know
0%
Cautious
Clockwatchers
(n=521)
20%
Total (n=2,076)
40%
60%
Chart shows additional noteworthy responses to Q17 and Q19 (open­ended questions): What type of work are you currently doing in retirement? / What type of work do you think you will do in retirement?
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Preparations To Date and Assistance Needed
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35
Recent Preparations for the Future Most common preparations center around finances, particularly saving money and financial planning followed by debt reduction and job/career actions. Pro­Active Self­Actualizers and Clockwatchers are the most likely to mention saving money; Self­Actualizers are also the most likely to mention financial planning. Doubters are the segment most likely to mention job/career.
Recent Preparations for the Future
39%
28%
30%
Saving money/contributing to
retirement plans
35%
17%
18%
18%
Other financial planning (not
retirement: met with financial
advisor, reducing spending, etc.)
20%
9%
Debt reduction
5%
Job/career­related activities
(career changes, continuing to
work)
0%
Cautious
Clockwatchers
(n=708)
42%
Doubters (n=408)
Day­to­Day
Embracers
(n=716)
27%
14%
13%
15%
12%
Pro­Active Self­
Actualizers
(n=628)
Total (n=2,480)
20%
16%
13%
12%
20%
40%
60%
Chart shows most frequent responses to Question 3: “What, if anything, have you done within the past year or so to help prepare yourself for the future?” (open­ended question)
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Recent Preparations for the Future (cont.) Less commonly mentioned preparations for the future include adopting a healthy lifestyle, retirement planning (other than saving), and making changes to home/property. Day­to­Day Embracers were especially likely to mention adopting a healthy lifestyle, while Pro­Active Self­
Actualizers were the most likely to mention retirement planning. Recent Preparations for the Future (cont.) Cautious
Clockwatchers
(n=708)
3%
6%
Adopting healthy lifestyle
12%
9%
7%
Doubters (n=408)
5%
3%
4%
Retirement planning other than
just saving money (planning for
retirement, retirement seminars,
monitoring funds)
Day­to­Day
Embracers
(n=716)
12%
6%
Pro­Active Self­
Actualizers
(n=628)
4%
5%
8%
8%
6%
Changes to home/property
(downsizing, home repairs,
purchasing home/property,
moving)
0%
Total (n=2,480)
20%
40%
60%
Chart shows next most frequent responses to Question 3: “What, if anything, have you done within the past year or so to help prepare yourself for the future?” (open­ended question)
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Recent Preparations for the Future (cont.):
Compared to other segments, Day­to­Day Embracers (15%) and Clockwatchers (14%) were especially likely to indicate that they had taken no action to prepare for the future. Doubters (8%) were particularly likely to say they can’t afford to save. Pro­Active Self­Actualizers were the most likely to cite personal preparation unrelated to finances and the least likely to have done nothing.4
Recent Preparations for the Future (cont.) 3%
1%
3%
7%
4%
Personal preparation
Cautious
Clockwatchers
(n=708)
1%
8%
2%
0%
2%
Can't afford retirement saving
Doubters
(n=408)
8%
8%
11%
9%
9%
Miscellaneous
Nothing
4%
Day­to­Day
Embracers
(n=716)
14%
11%
15%
12%
Pro­Active Self­
Actualizers
(n=628)
11%
7%
4%
5%
7%
Refused/no answer
0%
Total (n=2,480)
20%
40%
60%
Chart shows least frequent responses to Question 3 as well as percent who said “nothing” and percent who refused: “What, if anything, have you done within the past year or so to help prepare yourself for the future?” (open­ended question)
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Assistance Needed to Prepare for Next Step in Life
Help preparing financially for retirement tops list, but 4 in 10 claim to need no assistance. Day­to­Day Embracers were most likely to report a need for all types of assistance. Clockwatchers and Pro­Active Self­Actualizers were the most likely segments to report no need for assistance yet roughly 30% were interested in advice related to financially preparing for retirement or money management. Doubters were moderately interested in each type of advice. Assistance Needed to Prepare for Next Step
30%
25%
Advice to help you prepare
financially for retirement
29%
31%
28%
24%
Advice to help you manage
your money in retirement
30%
30%
14%
Information to determine
your eligibility for public
benefits
8%
21%
38%
Doubters
(n=408)
37%
Day­to­Day
Embracers
(n=716)
29%
24%
38%
39%
0%
Pro­Active Self­
Actualizers
(n=628)
18%
None ­ I do not need any
assistance
20%
Cautious
Clockwatchers
(n=708)
40%
48%
Total (n=2,480)
46%
60%
Chart shows most frequently selected responses to Question 23: “Sometimes people have desires, dreams, or goals but have difficulty achieving them or may feel that certain obstacles are in their way. What type of assistance or support, if any, would
help you take the next step in your life?” AARP Research
39
Assistance Needed to Prepare for Next Step in Life (cont.)
Interest in each of six types of assistance related to work or career is highest among Day­to­Day Embracers and lowest among Cautious Clockwatchers. Doubters are about as interested as Day­to­Day Embracers in job training (18%) or job search assistance (18%) but less interested in help starting their own business (7%), education loans (7%), or job coaching (10%). Pro­Active Self­Actualizers are somewhat interested in advice related to starting their own business (11%) but less interested in other types of work advice (6­7%). Assistance Needed to Prepare for Next Step (cont.)
8%
Training for a new job or career
6%
6%
Doubters
(n=408)
12%
4%
7%
Advice to help you start your own business
18%
18%
13%
8%
Job search assistance to help you find a job
18%
20%
Cautious
Clockwatchers
(n=708)
11%
20%
Day­to­Day
Embracers
(n=716)
11%
7%
10%
Job coaching to help you identify types of
jobs you like
7%10%
2%
Loan/scholarship to help you start own
business
8%
4%7%
17%
Pro­Active Self­
Actualizers
(n=628)
16%
Total (n=2,480)
3% 7%
9%
3%
5%
Loan/scholarship for more eduation or skills
for new job
0%
20%
40%
60%
Chart shows work­related responses to Question 23: “Sometimes people have desires, dreams, or goals but have difficulty achieving them or may feel that certain obstacles are in their way. What type of assistance or support, if any, would help you take the next step in your life?” AARP Research
40
Assistance Needed to Prepare for Next Step in Life (cont.)
Advice related to non­tangible issues, such as emotional preparation and life coaching, is of less importance than advice related to the more tangible challenges such as finances and employment. Of the four segments, Day­to­Day Embracers expressed the most interest in this type of advice, particularly life coaching (17%) and advice to help you prepare emotionally for the next step in your life (16%). The other three segments each expressed similarly low levels of interest.
Assistance Needed to Prepare for Next Step (cont.)
Cautious
Clockwatchers
(n=708)
8%
11%
Advice to help you prepare
emotionally for the next step
in your life
16%
9%
11%
Doubters
(n=408)
7%
8%
Life coaching to help you
determine what to do with
the rest of your life
Day­to­Day
Embracers
(n=716)
17%
8%
10%
Pro­Active Self­
Actualizers
(n=628)
5%
5%
Advice to help you prepare
for your social needs and
interpersonal relationships
9%
6%
6%
0%
Total (n=2,480)
20%
40%
60%
Chart shows least frequent responses to Question 23: “Sometimes people have desires, dreams, or goals but have difficulty achieving them or may feel that certain obstacles are in their way. What type of assistance or support, if any, would help you take the next step in your life?” AARP Research
41
Sources of Advice or Information Already Consulted Related to Planning for the Future
Only 17% of Pro­Active Self­Actualizers have not sought advice or information related to planning for the future, compared to over one third (36­39%) of the other three segments. Pro­Active Self­
Actualizers are the most likely to have used professional financial advisors. Day­to­Day Embracers are about as likely as Self­Actualizers to have sought information from several of the other sources, such as family/friends, magazines/books, financial planning web sites, and an employer.
Sources of Advice or Information Already Consulted
None ­I have not consulted any
sources
Cautious
Clockwatchers
(n=708)
39%
36%
37%
17%
33%
Doubters
(n=408)
22%
29%
26%
Professional financial advisor
42%
28%
23%
22%
Family or friends
28%
13%
Magazines, books, other
publications
18%
21%
0%
20%
Day­to­Day
Embracers
(n=716)
33%
32%
Pro­Active Self­
Actualizers
(n=628)
25%
29%
Total (n=2,480)
40%
60%
Chart shows most frequent responses to Question 24: “Which of the following sources have you consulted for advice or information
related to planning for the future or planning for retirement?” (closed­ended)
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42
Sources Already Consulted Related to Planning for the Future (cont.) Doubters are about as likely as Self­Actualizers to have sought advice or information from a retirement plan provider or from seminars and classes. Clockwatchers are less likely than respondents overall to have consulted many sources, with the exception of a financial institution or an employer.
Sources of Advice or Information Already Consulted (cont.)
14%
Retirement plan provider
13%
17%
15%
13%
12%
Financial institution
16%
8%
9%
Financial planning web site
24%
Doubters (n=408)
24%
Day­to­Day
Embracers
(n=716)
16%
19%
13%
8%
Seminars or classes
Cautious
Clockwatchers
(n=708)
22%
10%
14%
12%
Pro­Active Self­
Actualizers
(n=628)
17%
8%
8%
10%
14%
10%
Current or former employer
0%
20%
Total (n=2,480)
40%
60%
Chart shows less frequent responses to Question 24: “Which of the following sources have you consulted for advice or information related to planning for the future or planning for retirement?” (closed­ended)
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43
How Pro­Active Self­Actualizers Receive Advice and Information
Among Pro­Active Self­Actualizers who have consulted each source below, the majority actively requested the information. Pro­Active Self­Actualizers were more likely to describe the information from publications and financial planning web sites as unsolicited (as compared to other sources). Those who consulted professional financial advisors and financial institutions were most likely to have actively reached out to these sources. How Pro­Active Self­Actualizers Receive Advice and Information (Base varies by bar)
Professional financial advisor
(n=297)
76%
58%
Family or friends (n=222)
Magazines, books, other publications
(n=202)
7%
8%
64%
53%
Retirement plan provider (n=166)
Seminars or classes (n=129)
Financial planning web site (n=111)
0%
20%
31%
11%
13%
9%
67%
16%
40%
60%
15%
1%
16%
1%
33%
69%
19%
80%
2%
3%
20%
72%
Financial institution (n=174)
16%
15%
1%
I actively
requested
I received but
did not request
Both
3%
2%
Don't
know/Refused
100%
Question 25: “For each source, please indicate which of the columns below best represents what led you to consult that source.” (Closed­ended. For Q25, respondents were only asked about sources that they had acknowledged consulting in Q24. Bars are only shown for sources that had been used by at least 100 respondents in this segment.) AARP Research
44
How Day­to­Day Embracers Receive Advice and Information
As with Self­Actualizers, the majority –or close to the majority­­of Day­to­Day Embracers who have used these sources have actively reached out to them. However, Day­to­Day Embracers who have consulted publications and financial institutions are considerably less likely than Self­Actualizers to have actively requested this information. In fact, Day­to­Day Embracers reported that information received through publications and financial institutions was the most likely to have been unsolicited (as compared to other sources of advice).
How Day­to­Day Embracers Receive Advice and Information (Base varies by bar)
Family or friends (n=266)
55%
Professional financial advisor
(n=218)
11%
70%
Magazines, books, other
publications (n=192)
47%
28%
12%
30%
I actively
requested
6%
14% 4%
19%
I received but
did not request
4%
Both
Financial institution (n=110)
55%
Retirement plan provider
(n=104)
22%
52%
0%
20%
15%
40%
60%
3%
20%
19%
80%
14%
Don't
know/Refused
100%
Question 25: “For each source, please indicate which of the columns below best represents what led you to consult that source.” (Closed­ended. For Q25, respondents were only asked about sources that they had acknowledged consulting in Q24. Bars are only shown for sources that had been used by at least 100 respondents in this segment.)
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45
How Doubters Receive Advice and Information
Doubters who have used professional financial advisors and family/friends are as likely as Self­Actualizers and Day­to­Day Embracers to have actively reached out to these sources. As in the case of Self­Actualizers and Day­to­
Day Embracers, Doubters who used financial advisors were considerably likely (71%) to have actively requested that advice while just over half (55%) of those who use family/friends actively requested advice from family/friends. How Doubters Receive Advice and Information (Base varies by bar)
Professional financial advisor
(n=138)
71%
13%
15%
I actively
requested
1%
I received but
did not request
Both
Family or friends (n=109)
55%
10%
28%
6%
Don't
know/Refused
0%
20%
40%
60%
80%
100%
Question 25: “For each source, please indicate which of the columns below best represents what led you to consult that source.” (Closed­ended. For Q25, respondents were only asked about sources that they had acknowledged consulting in Q24. Bars are only shown for sources that had been used by at least 100 respondents in this segment.)
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46
How Cautious Clockwatchers Receive Advice and Information
Among Clockwatchers that have consulted each source for advice or information, the share who actively reached out was relatively low compared to other segments. For three of the five sources shown below, fewer than half of the Clockwatchers who consulted the source indicated that they had actively reached out. In fact, of Clockwatchers who consulted publications, only 37% actively requested the publication.
How Cautious Clockwatchers Receive Advice and Information
(Base varies by bar)
I actively
Professional financial advisor
(n=197)
66%
Family or friends (n=171)
8%
41%
Magazines, books, other
publications (n=111)
13%
37%
Financial institution (n=119)
21%
33%
29%
14%
I received but
did not request
13%
26%
60%
requested
5%
8%
24%
Both
2%
Don't
know/Refused
Retirement plan provider
(n=100)
44%
0%
20%
26%
40%
60%
21%
80%
9%
100%
Question 25: “For each source, please indicate which of the columns below best represents what led you to consult that source.” (Closed­ended. For Q25, respondents were only asked about sources that they had acknowledged consulting in Q24. Bars are only shown for sources that had been used by at least 100 respondents in this segment.)
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47
Conclusions and Implications
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48
Conclusions and Implications
Views and expectations of retirement vary tremendously by segment, which affirms the need to vary messaging (or incorporate a variety of messages) in educational materials promoting retirement planning. • The notion of “retirement” per se may in fact alienate certain people, particularly the Doubters, nearly half of whom expect their “retirement” to be no different from their current life and only 5 percent of whom expect to stop working completely in retirement.
• Aspirations of “creative” pursuits in retirement are common among Pro­Active Self­
Actualizers and Day­to­Day Embracers, but shared by only a minority of Clockwatchers
and Doubters. Expectations of pursuing hobbies are very common among Pro­Active Self­Actualizers and Day­to­Day Embracers, fairly common among Clockwatchers, but uncommon among Doubters.
• Messages about the importance of “planning” are likely to resonate most with Pro­Active Self­Actualizers, nearly 9 in 10 of whom see themselves as a “planner”. However, no more than half (40­50%) of the other segments view themselves as planners, which suggests that messages promoting planning would resonate more if recast in terms of manageable scenarios to which non­planners can relate. Example: ¾ Anecdotes focusing on a non­planner who improved his/her preparedness for the financial and non­financial sides of retirement by taking one or two concrete steps (e.g. wrote down non­financial and financial goals, used a retirement calculator)
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49
Conclusions and Implications (cont.)
• Optimism about retirement varies widely, with majorities of only two Segments—
Pro­Active Self­Actualizers and Cautious Clockwatchers ­­expressing optimism about their retirement years. In contrast, a majority of Doubters express pessimism. Some themes related to retirement resonate with majorities across all segments (or nearly a majority) and are likely to be useful when communicating with a broad cross­
section of the population:
•
•
•
Importance of emotional health in retirement
Importance of social connections in retirement
The retirement transition as a gradual process
Demographics alone are not a reliable indicator of segment membership. However, in the absence of attitudinal measures, certain combinations of demographics, such as household income, education, gender, and marital status can be used to make an educated guess about which segment an individual may belong to. (See Appendix B)
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50
APPENDIX A:
Selected Findings by Demographics
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51
Optimism: Gender and Age Comparisons
(% Strongly/ Somewhat Agree)
Gender
TOTAL
(n=2480)
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
Retirement: financial
hardship to me (Q5_d)
37%
33%
40%
40%
33%
35%
Confident I will have
enough money in
retirement (Q22_d)
May never be able to
afford to stop working
(Q22_f)
Overall I am pleased
with the way things are
going in my life (Q1_a)
I am optimistic about
retirement* (Q4)
37%
40%
35%
34%
37%
44%
44%
45%
44%
48%
42%
41%
64%
62%
66%
65%
64%
63%
47%
47%
48%
40%
53%
53%
I am optimistic about
the future (Q1_c)
67%
64%
70%
67%
70%
64%
I am unsure about what
the future holds for me
(Q1_d)
49%
50%
49%
51%
49%
48%
*With the exception of Q4, all percentages shown in this table represent the percentage of respondents who “strongly agree” or “somewhat agree” with each statement. Percentages shown for Q4 represent the % of respondents who indicated that they were “very optimistic” or “somewhat optimistic” about their (and their spouse/partner’s) retirement. Responses displayed here for Q4 represent the top 2 response options on a 5­point optimism scale, whereas responses displayed for the other questions shown in this table represent the top 2 responses on a 5­point agreement scale.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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52
Optimism: Education and Income Comparisons
(% Strongly/ Somewhat Agree)
Education TOTAL
(n=2480)
HS/Some College
Income Bachelors +
$40­$59.9K
$60­$84.9K
$85­$124.9K (n=1197)
(n=771) (n=916)
(n=793)
(n=1283)
Retirement: financial hardship to me (Q5_d)
37%
40%
30%
52%
31%
29%
Confident I will have enough money in retirement (Q22_d)
May never be able to afford to stop working (Q22_f)
Overall I am pleased with the way things are going in my life (Q1_a)
I am optimistic about retirement* (Q4)
37%
33%
46%
27%
38%
45%
44%
47%
39%
57%
39%
37%
64%
63%
67%
55%
65%
71%
47%
45%
52%
35%
51%
56%
I am optimistic about the future (Q1_c)
67%
66%
70%
57%
69%
75%
I am unsure about what the future holds for me (Q1_d)
49%
50%
48%
58%
47%
44%
*With the exception of Q4, all percentages shown in this table represent the percentage of respondents who “strongly agree” or “somewhat agree” with each statement. Percentages shown for Q4 represent the % of respondents who indicated that they were “very optimistic” or “somewhat optimistic” about their (and their spouse/partner’s) retirement. Responses displayed here for Q4 represent the top 2 response options on a 5­point optimism scale, whereas responses displayed for the other questions shown in this table represent the top 2 responses on a 5­point agreement scale.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping
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53
Planning: Gender and Age Comparisons
(% Strongly/ Somewhat Agree)
Gender
TOTAL
(n=2480)
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
I consider myself to be a
planner and plan carefully for
the future (Q20_a)
I know what I want out of life
and have a plan for making it
happen (Q20_d)
I have a good sense of the
amount of money I need to
save for retirement (Q22_a)
I cannot find the time to plan
for the future (Q20_e)
55%
54%
56%
53%
57%
56%
46%
48%
44%
41%
46%
54%
50%
53%
47%
45%
51%
60%
12%
13%
12%
15%
12%
9%
I have not spent much time
thinking about what I’ll do in
retirement (Q21ab_item c)
I know what I want out of life
but don’t have a specific plan
to achieve it (Q 20_c)
I rarely plan because many
things are a matter of luck
anyhow (Q20_b)
37%
36%
39%
42%
38%
29%
43%
41%
45%
44%
42%
42%
10%
11%
10%
11%
11%
8%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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54
Planning: Education and Income Comparisons
(% Strongly/ Somewhat Agree)
Education TOTAL
(n=2480)
HS/Some College
Bachelors +
(n=1197)
(n=1283)
Income $40­
$59.9.K
$60­$84.9K
$85­124.9K (n=916)
(n=793)
(n=771) I consider myself to be a
planner and plan carefully for
the future (Q20_a)
I know what I want out of life
and have a plan for making it
happen (Q20_d)
I have a good sense of the
amount of money I need to
save for retirement (Q22_a)
I cannot find the time to plan
for the future (Q20_e)
55%
52%
61%
50%
58%
57%
46%
43%
51%
39%
48%
50%
50%
46%
58%
41%
53%
56%
12%
13%
11%
14%
13%
11%
I have not spent much time
thinking about what I’ll do in
retirement (Q21ab_item c)
I know what I want out of life
but don’t have a specific plan
to achieve it (Q20_c)
I rarely plan because many
things are a matter of luck
anyhow (Q20_b)
37%
41%
30%
43%
37%
33%
43%
46%
38%
47%
43%
39%
10%
12%
7%
12%
10%
9%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Creativity and Social Connections: Gender and Age Comparisons
Gender
(% Strongly/ Somewhat Agree)
TOTAL
(n=2480)
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
Retirement means more time to
devote to my creative side (Q5_h)
57%
53%
60%
56%
58%
55%
Retirement means more time to
pursue my interests/hobbies
(Q5_f)
Retirement is an opportunity to
pursue work that I am passionate
about (Q5_s)
Retirement is a chance to pursue
interests/hobbies I never had time
for (Q5_g)
Retirement means more
opportunity for socializing (Q5_r)
75%
75%
76%
77%
75%
72%
45%
44%
46%
47%
47%
40%
67%
65%
70%
70%
64%
68%
57%
54%
59%
60%
53%
56%
Social connections will be
important in retirement (Q6_b)
70%
63%
76%
71%
69%
71%
Emotional health will be important
in retirement (Q6_a)
94%
92%
97%
94%
95%
93%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Creativity and Social Connections: Education and Income Comparisons
Education (% Strongly/ Somewhat Agree)
TOTAL
(n=2480)
HS/Some College
Bachelors +
(n=1197)
(n=1283)
Income $40­
$59.9K
$60­
$84.9K
(n=771) (n=916)
$85­124.9K (n=793)
Retirement means more time to
devote to my creative side
(Q5_h)
Retirement means more time to
pursue my interests/hobbies
(Q5_f)
Retirement is an opportunity to
pursue work that I am
passionate about (Q5_s)
Retirement is a chance to
pursue interests/hobbies I never
had time for (Q5_g)
Retirement means more
opportunity for socializing
(Q5_r)
Social connections will be
important in retirement (Q6_b)
57%
53%
63%
50%
60%
60%
75%
73%
81%
70%
74%
82%
45%
40%
55%
38%
46%
51%
67%
66%
70%
64%
67%
71%
57%
56%
59%
51%
57%
61%
70%
68%
74%
66%
71%
73%
Emotional health will be
important in retirement (Q6_a)
94%
94%
95%
93%
95%
94%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Leisure: Gender and Age Comparisons
(% Strongly/ Somewhat Agree)
Gender
TOTAL
(n=2480)
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
Retirement is a time to
stop working
completely (Q5_l)
Retirement is a time of
leisure (Q5_p)
22%
16%
27%
24%
19%
21%
71%
69%
73%
72%
71%
68%
Retirement is a time to
indulge myself (Q5_o)
52%
49%
54%
52%
50%
53%
Retirement means
fewer obligations
(Q5_n)
56%
56%
56%
56%
58%
52%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Leisure: Education and Income Comparisons
(% Strongly/ Somewhat Agree)
Education TOTAL
(n=2480)
HS/Some College
Bachelors +
(n=1197)
(n=1283)
Income $40­
$59.9K
$60­$84.9K
$85­124.9K (n=916)
(n=793)
(n=771) Retirement is a time to
stop working completely
(Q5_l)
Retirement is a time of
leisure (Q5_p)
22%
23%
18%
22%
23%
20%
71%
71%
70%
62%
73%
77%
Retirement is a time to
indulge myself (Q5_o)
52%
52%
50%
47%
55%
53%
Retirement means fewer
obligations (Q5_n)
56%
56%
56%
49%
57%
61%
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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The Retirement Transition: Gender and Age Comparisons
“Which best describes how you expect to make the move into retirement / how you made the move into retirement?”
Gender
TOTAL
(n=2472)
Age Men
Women
50­54
55­59
60­65
(n=982)
(n=1488)
(n=865) (n=874)
(n=733)
All at once
20%
20%
20%
19%
22%
20%
Gradually
58%
58%
58%
60%
56%
58%
Not applicable / Same
as pre-retirement life
21%
21%
21%
21%
21%
22%
Source: Q10a/Q10b
Note: The findings shown above did not differ in a statistically significant manner by gender or age.
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The Retirement Transition: Education and Income Comparisons
“Which best describes how you expect to make the move into retirement / how you made the move into retirement?”
Education TOTAL
(n=2472)
HS/Some College
Income Bachelors +
$40­$59.9K
$60­$84.9K
$85­124.9K (n=1192)
(n=770) (n=914)
(n=788)
(n=1280)
All at once
20%
19%
23%
16%
23%
21%
Gradually
58%
59%
58%
57%
58%
60%
Not applicable / Same
as pre-retirement life
21%
22%
19%
27%
18%
19%
Source: Q10a/Q10b
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Expected Employment in Retirement: Gender and Age Comparisons
“Thinking about your employment status in later years, which of these best describes what you think you will be doing when you retire?”
Gender
TOTAL
(n=2284)
Age Men
Women
50­54
55­59
60­65
(n=899)
(n=1384 )
(n=847 ) (n=828 )
(n=609 )
Not work at all
17%
17%
18%
18%
14%
22%
Work full­time
12%
17%
10%
15%
12%
12%
Work part­time
57%
53%
57%
52%
59%
54%
Start your own business/work for yourself
Work (miscellaneous)*
12%
13%
12%
14%
13%
8%
3%
1%
3%
1%
2%
3%
Source: Q12. Base: Respondents who have never retired.
*“Work (miscellaneous)” represents respondents whose open­ended response to this question indicated that they expect to work in retirement without clarifying whether that work will fall into one of the pre­defined categories (full­time, part­time, or self­employment).
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Expected Employment in Retirement: Education and Income Comparisons
“Thinking about your employment status in later years, which of these best describes what you think you will be doing when you retire?”
Education TOTAL
(n=2284)
HS/Some College
Bachelors +
(n=1085)
(n=1199)
Income $40­
$59.9K
$60­$84.9K
(n=841)
(n=710) $85­
124.9K (n=733)
Not work at all
17%
18%
16%
10%
19%
22%
Work full­time
12%
14%
13%
20%
9%
11%
Work part­time
57%
55%
56%
56%
57%
52%
Start your own business/work for yourself
Work (miscellaneous)*
12%
12%
13%
12%
13%
12%
3%
2%
3%
2%
1%
3%
Source: Q12. Base: Respondents who have never retired.
*“Work (miscellaneous)” represents respondents whose open­ended response to this question indicated that they expect to work in retirement without clarifying whether that work will fall into one of the pre­defined categories (full­time, part­time, or self­employment).
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Assistance Needed to Prepare for Next Step in Life: Financial Advice
Gender and Age Comparisons
Gender
TOTAL
(n=2480)
Advice to help you prepare financially for retirement
Advice to help you manage your money in retirement
Information to determine your eligibility for public benefits
None – I do not need any assistance
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
31%
29%
33%
33%
31%
27%
30%
30%
30%
31%
30%
29%
18%
20%
16%
17%
17%
21%
39%
42%
37%
35%
42%
43%
Source: Q23. Items related financial advice/information. Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Assistance Needed to Prepare for Next Step in Life: Financial Advice
Education and Income Comparisons
Education TOTAL
(n=2480)
HS/Some College
Income Bachelors +
$40­$59.9K
$60­$84.9K
(n=1197)
(n=771) (n=916)
(n=1283)
Advice to help you prepare financially for retirement
Advice to help you manage your money in retirement
Information to determine your eligibility for public benefits
None – I do not need any assistance
$85­
124.9K (n=793)
31%
32%
29%
29%
31%
33%
30%
31%
29%
27%
31%
32%
18%
19%
15%
23%
16%
15%
39%
41%
36%
38%
41%
39%
Source: Q23. Items related financial advice/information.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Assistance Needed to Prepare for Next Step in Life: Work/Career
Gender and Age Comparisons
Gender
TOTAL
(n=2480)
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
Training for a new job
or career
13%
13%
12%
15%
12%
10%
Job search assistance
to help you find a job
12%
13%
11%
14%
10%
11%
Advice to help you start
your own business
11%
13%
8%
14%
9%
8%
Job coaching to help
you identify types of
jobs you might like
Loan/scholarship to
help you start own
business
Loan/scholarship for
more education or to
get skills for new job
10%
10%
10%
13%
9%
8%
7%
7%
8%
8%
5%
7%
5%
5%
6%
6%
5%
4%
Source: Q23. Items related to work or career.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Assistance Needed to Prepare for Next Step in Life: Work/Career
Education and Income Comparisons
Education TOTAL
(n=2480)
HS/Some College
Income Bachelors +
$40­$59.9K
$60­$84.9K
(n=1197)
(n=771) (n=916)
(n=1283)
$85­
124.9K (n=793)
Training for a new job
or career
13%
12%
14%
15%
12%
11%
Job search assistance
to help you find a job
12%
11%
14%
14%
10%
11%
Advice to help you start
your own business
11%
9%
13%
11%
13%
8%
Job coaching to help
you identify types of
jobs you might like
Loan/scholarship to
help you start own
business
Loan/scholarship for
more education or to
get skills for new job
10%
9%
12%
11%
10%
9%
7%
6%
9%
9%
7%
6%
5%
5%
6%
6%
5%
5%
Source: Q23. Items related to work or career.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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Assistance Needed to Prepare for Next Step in Life: Other
Gender and Age Comparisons
Gender
TOTAL
(n=2480)
Advice to help you 11%
prepare emotionally for the next step in your life
Life coaching to help 10%
you determine what to do with the rest of your life
Advice to help you 6%
prepare for your social needs and interpersonal relationships
Age Men
Women
50­54
55­59
60­65
(n=984)
(n=1494)
(n=867) (n=878)
(n=735)
10%
12%
13%
9%
13%
10%
11%
12%
9%
9%
7%
6%
8%
4%
7%
Source: Q23. Items unrelated to financial issues or work.
Note: The findings shown above did not differ in a statistically significant manner by gender or age.
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Assistance Needed to Prepare for Next Step in Life: Other
Education and Income Comparisons
Education TOTAL
(n=2480)
HS/Some College
Income Bachelors +
$40­$59.9K
$60­$84.9K
(n=1197)
(n=771) (n=916)
(n=1283)
Advice to help you 11%
prepare emotionally for the next step in your life
Life coaching to help 10%
you determine what to do with the rest of your life
Advice to help you 6%
prepare for your social needs and interpersonal relationships
$85­
124.9K (n=793)
10%
14%
12%
9%
12%
8%
15%
10%
8%
12%
5%
9%
7%
5%
6%
Source: Q23. Items unrelated to financial issues or work.
Note: Percentages in green bold are significantly higher than the percentages shown in red within the same row and grouping.
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APPENDIX B:
Are Demographic Characteristics Predictive of Segments?
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Overview of Demographic Predictor Analysis
•
A CHAID analysis was conducted in an effort to determine whether demographics can be used to predict segment membership. Results:
•
While individuals with certain demographic characteristics were more likely than others to belong to certain segments, it does not appear that demographic characteristics alone would be a reliable indicator of segment membership.
•
As illustrated on the following slide, however, some noteworthy patterns did emerge:
–
Education level is a useful method of determining likelihood of being a Proactive Self­Actualizer or a Cautious Clockwatcher. For example, 34% of those with a bachelor’s degree or higher were classified as Proactive Self­Actualizers compared to just 21% of those with only some college and 17% of those with no more than a high school degree. In contrast, 40% of those with no more than a high school degree were classified as Cautious Clockwatchers compared to just 30% of those with some college or more education.
• Education and household income together may also be a useful gauge as 37% of those with both a bachelor’s degree or higher and household income of $60,000 or higher were classified as Proactive Self­Actualizers compared to just 22% of those with a bachelor’s degree or higher and household income of $40,000­$59,999.
–
Relatively low household income alone is a useful method of identifying potential Day­to­Day Embracers or Doubters. For example, 32% of those with household incomes of $40,000­59,999 are Day­to­Day Embracers and 24% are Doubters. In comparison, of those with incomes of $60,000 or higher, only 23% are Day­to­Day Embracers and just 14% are Doubters.
• Adding marital status to household income is even more useful in identifying potential Day­to­Day Embracers. For example, of those with household incomes of $40,000­59,999 and who are not married/not living with a partner, 39% were classified as Day­to­Day Embracers compared to just 27% of those with the same income level who are married or partnered. •
Adding gender to household income helps to identify potential Doubters. Specifically, 30% of men with household incomes of $40,000­$59,999 were Doubters, compared to just 19% of women with the same household income.
Note: The percentages displayed in the discussion of the CHAID analysis may differ in some instances from percentages displayed in other sections of the report. These differences, which may range from 1 to 2 percentage points, arise due to differences in the way the CHAID analysis handles weighting. AARP Research
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Best Demographic Predictors (with % of each demographic combination falling into segment)
Proactive Self­
Actualizers
(24% of sample)
Day­to­Day Life Embracers
(27% of sample)
Doubters
(17% of sample)
Cautious Clockwatchers
(33% of sample)
Bachelors degree or more (34% vs. 21% Some college and 17% HS degree) Æ
Bachelors degree or more AND >60K Household income (37% vs. 22% of Bachelors degree or more AND 40­59.9K Household income )
40­59.9K Household income (32% vs. 23% of >60K Household income)Æ
40­59.9K Household income AND Single or not living w/ partner (39% vs. 27% of 40­59.9K Household income AND Married or living w/ partner)Æ
40­59.9K Household income AND Single or not living w/ partner AND 55 to 65 (44% vs. 31% of 40­
59.9K Household income AND Single or not living w/ partner AND 50 to 54)
Female with >$60K Household income and Some College (37% vs. 21% of Male with >$60K Household income and Some College ) 40­59.9K Household income (32% vs. 23% of >60K Household income)Æ
40­59.9K Household income AND 50 to 54 and Married or living with partner (38% vs. 20% of 40­59.9K Household income AND 55 to 65 and Married or living with partner)
40­59.9K Household income (24% vs. 14% of >60K Household income) Æ
40­59.9K Household income AND Male (30% vs. 19% of 40­59.9K Household income AND Female) Æ
40­59.9K Household income AND Male AND White Non­Hispanic (33% vs. 15% of 40­59.9K Household income AND Male AND Non­White or Hispanic ) HS degree (40% vs. 30% of Some College or more)Æ
HS degree AND Non­White or Hispanic (56% vs. 38% of HS degree AND White or Non­Hispanic)
HS degree (40% vs. 30% of Some College or more)Æ
HS degree AND >60K Household income and White Non­Hispanic (42% vs. 31% of HS degree AND 40­
59.9K Household income and White Non­Hispanic) 50 to 54 year old males with at least some college (41% vs. 33% of 55 to 65 males with at least some college)
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Best Demographic Predictors (with % of segment matching demographic description)
Proactive Self­
Actualizers
Bachelors degree or more (47%) Æ
Bachelors degree or more AND >60K Household income (41%)
(24% of sample)
Day­to­Day Life Embracers
(27% of sample)
40­59.9K Household income (39%) Æ
40­59.9K Household income AND Single or not living w/ partner (20%) Æ
40­59.9K Household income AND Single or not living w/ partner AND 55 to 65 (14%) Female with >$60K Household income and Some College (16%) 40­59.9K Household income (39%) Æ
40­59.9K Household income AND 50 to 54 and Married or living with partner (10%)
Doubters
(17% of sample)
Cautious Clockwatchers
(33% of sample)
40­59.9K Household income (45%) Æ
40­59.9K Household income AND Male (25%) Æ
40­59.9K Household income AND Male AND White Non­Hispanic (23%) HS degree (42%)Æ
HS degree AND Non­White or Hispanic (7%)
HS degree (42%) Æ
HS degree AND >60K Household income and White Non­Hispanic (23%) 50 to 54 year old males with at least some college (14%) AARP Research
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APPENDIX C:
Demographic Profile of Respondents
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Respondent Profile
% of Respondents
(n=2,480)
% of Respondents
(n=2,480)
HH Income
Age
50­54
43% $40K­59.9K
32%
55­59
34%
$60­74.9K
20%
60­65
24%
$75­99.9K
27%
$100 – 124.9K
21%
Education
Employment H.S. Degree / equiv
Full­time
78%
Part­time
16%
Unemployed/looking
3%
Not working/not looking
3%
34%
Some college/ assoc
32%
Bachelors +
34%
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Notes
1
The “Work (miscellaneous)” category displayed in the chart on page 27 represents respondents who indicated that they expect to work in retirement without clarifying whether that work will fall into one of the pre­defined categories (full­time, part­time, or self­
employment).
2
The chart on page 28 excludes the small share of respondents (less than 1%) whose responses fell into an “other” category.
3
The “creative work” grouping on page 34 represents an attempt to highlight occupations that are artistic in nature and that may be particularly likely to provide opportunities for exercising creativity. The following types of responses were included in this grouping: pursue art/be an artist, pursue writing/be a writer, photography, craft work, and general references to creativity such as “creative work” or “something creative.” However, realistically, it should be noted that opportunities for exercising one’s creativity most likely exist in any occupation and additional analysis of the data is needed to get a better sense of the extent to which respondents who named other occupations consider those other occupations to be “creative” pursuits. 4
The “personal preparation” category mentioned on page 38 includes personal preparation unrelated to finances such as pursuing hobbies, maintaining ties with family and friends, and writing down goals.
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