Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- VMS
- Abbreviations and terms
- Abbreviations
- Companies mentioned in this report:
Executive Summary
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- Global pension assets still growing, but U.S. share is shrinking
- Investor confidence
- Regulatory environment
- New market opportunities
- New media opportunities
Insights and Opportunities
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- Key points
- The new American dream: to save enough money to enjoy retirement
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- Figure 1: Most important financial goals, june 2011
- The recession has hit hard
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- Figure 2: Percentage of workers very confident about aspects of retirement planning, 2001, 2011
- Most workers have not saved much
- The Great Recession has made younger people more retirement-aware
- Younger workers need help
- Older investors’ confidence is shaken
- Performing retirement needs calculations helps drive retirement savings
- Focus on women
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- Figure 3: Trusted sources of retirement planning information, by gender, July 2011
- Figure 4: Interest in financial matters and advertising, by gender, February-March 2011
- Small businesses offer opportunity
Inspire Insights
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- Trend: Retired for Hire
Market Size
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- Key points
- Total retirement assets in U.S. continue to rise
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- Figure 5: Retirement plan assets, year- or quarter-end, selected periods, 2000-Q1 2011
- IRAs hold most assets
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- Figure 6: Retirement assets by type, end of period, Q4 2010-Q1 2011 (in millions of dollars)
- Defined contribution plans
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- Figure 7: Defined contribution assets by type of plan, billions of dollars, year-end
Competitive Context
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- Key points
- The most important consideration for rollover candidates is an existing relationship
- New regulations increase transparency for both plan sponsors and participants
- Proposed legislation may change some basics about retirement plans
- Brookings Institution proposal
- Individual Recovery Assistance Act
- Workforce Fairness and Tax Relief Act of 2011
- Plan size determines where loyalty lies
- Banks are focusing on 401(k) administration
Segment Performance
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- Key points
- Defined Contribution Plans
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- Figure 8: Defined Contribution assets by type of plan, 2000-10
- DC Plan Activity
- IRAs
- IRA ownership
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- Figure 10: IRA ownership in U.S., by type, 2010
- Total IRA Assets
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- Figure 11: IRA assets by type of IRA, 2000, 2005, 2010
- 401(k)s
- The 401(k) world is changing
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- Figure 12: Percentage of companies offering retirement plans, by type of plan and size of company, 2007-10
- How retirement funds are invested
- IRAs
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- Figure 13: IRA Assets (billions of dollars), 1995, 2000, 2002, 2004, 2006-10
- 401(k)s
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- Figure 14: 401(k) plan assets, end of period, Q4 2010-Q1 2011 (billions of dollars)
- Figure 15: percentage of 401(k) assets in equities, by age, year-end 2009
- Target date funds grow in popularity
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- Figure 16: Target date funds’ 401(k) market share, year-end 2006-09
Marketing Channels
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- Key points
- RIAs positioned to gain market share in 401(k) market
- Banks are in a good position to reach younger investors
Market Drivers
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- Key points
- Automation is driving increased participation
- Low interest rates hurt savings
- People are working longer and past projected retirement age
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- Figure 17: Annual Civilian Labor-Force Participation Rate for Americans Age 55 and Older, by Gender, 1985–2010
- Market volatility and weak economy increase interest in planning
- Greater percentage of the U.S. population is younger
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- Figure 18: Population, by generation, 2011
- Housing market shows slight improvement, though still weak
- Unemployment continues to be high
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- Figure 19: U.S. Unemployment rate, 2001-10
- Fewer brokers, more accounts
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- Figure 20: Number of financial advisers, by channel, 2004-10
- Minorities have lowest incomes but are growing fastest and becoming more educated
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- Figure 21: Median annual household income by race/Hispanic origin, 2005-2009 (in 2009 CPI-U-RS adjusted dollars
- Figure 22: Percentage change in unemployment, by race/Hispanic origin, 2007-10
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- Figure 23: Population projections at various ages (000), by race, 2011-16
- Figure 24: Number of degrees earned, by educational level and race/Hispanic origin, 2000 and 2008
- Portfolios are improving, but saving isn’t
Leading Companies
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- Key points
- Fidelity is the largest defined contribution recordkeeper in two of three categories
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- Figure 25: Top 10 DC recordkepers by the number of plan sponsors as of Dec. 31, 2010
- Figure 26: Top 10 defined contribution recordkeepers by number of participants as of Dec. 31, 2010
- Figure 27: Top 10 defined contribution recordkeepers by AUM, as of Dec. 31, 2010
- Fidelity the number one choice for IRA rollovers
Innovation and Innovators
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- Key points
- Wells Fargo
- Fidelity
- Bank of America Merrill Lynch
- Left Coast Solutions unveils new mobile app
- ING focuses on retirement
- JPMorgan Retirement Services created a social media forum for plan sponsors
Marketing Strategies
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- Key points
- New media provides opportunity to target messages more specifically
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- Figure 28: Prefer online tools to other channels, including written materials, calculators, tools, what-if scenarios), 2011
- Figure 29: Interested in participating in financial planning/retirement planning webinars via the internet, 2011
- Figure 30: Interested in in-person financial and retirement planning seminars, 2011
- Figure 31: Interested in telephone advice and guidance, 2011
- Print ads
- T. Rowe Price
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- Figure 32: T. Rowe Price print ad, August 2011
- Thrivent
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- Figure 33: Thrivent print ad, June 2011
- Wells Fargo
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- Figure 34: Wells Fargo print ad, June-July 2011
- Direct mail advertising
- Principal
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- Figure 35: Direct mail ad, Principal, August 2011
- Fidelity
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- Figure 36: Fidelity direct mail ad, July 2011
- USAA
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- Figure 37: USAA Direct mail piece, July 2011
- Edward Jones
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- Figure 38: Direct mail ad, Edward Jones, August 2011
- Online and email advertising
- Fidelity
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- Figure 39: Fidelity online ad, August 2011
- ING
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- Figure 40: ING email ad, August 2011
- Vanguard
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- Figure 41: Vanguard online ad, August 2011
- Television advertising
- Fidelity
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- Figure 42: Fidelity television ad, 2010
- TD Ameritrade
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- Figure 43: TD Ameritrade, 2011
- Wells Fargo
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- Figure 44: Wells Fargo television ad, 2011
- Ameriprise
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- Figure 45: Ameriprise television ad, 2011
- Charles Schwab
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- Figure 46: Charles Schwab television ad, 2011
The Consumer—Type of Account and Balances
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- Key points
- 401(k)s most popular type of retirement savings account
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- Figure 47: Types of retirement account, by gender, June-July 2011
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- Figure 48: Types of retirement account, by age, June-July 2011
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- Figure 49: Types of retirement account, by household income, June-July 2011
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- Figure 50: Types of retirement account, by marital/relationship status, June-July 2011
- Total retirement savings
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- Figure 51: Total value of all household’s retirement savings accounts, by gender, June-July 2011
- Higher incomes lead to larger retirement accounts
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- Figure 52: Total value of all household’s retirement savings accounts, by household income, June-July 2011
The Consumer—Impact of the Economy
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- Even with the weak economy, people are saving for retirement
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- Figure 53: Have made changes to the amount saved in retirement savings plan(s), by age, June-July 2011
- However, retirement planning is not high on list of priorities
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- Figure 54: Retirement planning activities that have been conducted in the past, by gender, June-July 2011
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- Figure 55: Retirement planning activities that have been conducted in the past, by age, June-July 2011
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- Figure 56: Retirement planning activities that have been conducted in the past, by household income, JuneJuly 2011
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- Figure 57: Retirement planning activities conducted, June – July 2011
The Consumer—Account Activity
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- Most prefer to monitor accounts themselves
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- Figure 58: Retirement planning activities that have been conducted in the past, by gender, June-July 2011
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- Figure 59: Retirement planning activities that have been conducted in the past, by household income, June-July 2011
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- Figure 60: Retirement planning activities that have been conducted in the past, by education, June-July 2011
- Older respondents more likely to keep tabs on retirement account
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- Figure 61: Retirement planning activities that have been conducted in the past, by age, June-July 2011
The Consumer—Attitudes about Retirement Investing
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- Wide gender gap in retirement planning knowledge and involvement
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- Figure 62: Attitudes about retirement and retirement planning, by gender, June-July 2011
- Concern about comfortable retirement exists at all ages
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- Figure 63: Attitudes about retirement and retirement planning, by age, June-July 2011
- Respondents with higher incomes are happier with their plans and understand them better
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- Figure 64: Attitudes about retirement and retirement planning, by household income, June-July 2011
- Race affects attitude toward and readiness for retirement
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- Figure 65: Attitudes about retirement and retirement planning, by race/Hispanic origin, June-July 2011
- Retirees are happier than most with their plans
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- Figure 66: Attitudes about retirement and retirement planning, by employment, June-July 2011
The Consumer—Trusted Sources for Advice
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- Independent advisers are the most trusted source of advice
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- Figure 67: Type of institution most trusted to give retirement planning advice, by age, June-July 2011
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- Figure 68: Type of institution most trusted to give retirement planning advice, by household income, June-July 2011
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- Figure 69: Type of institution most trusted to give retirement planning advice, by employment, June-July 2011
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- Figure 70: Type of institution most trusted to give retirement planning advice, December 2008
Cluster Analysis
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- Retirement Squirrels
- Demographics
- Characteristics
- Opportunity
- Disinterested Ostriches
- Demographics
- Characteristics
- Opportunity
- Self-reliant Pensioners
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 71: Retirement planning clusters, July 2011
- Figure 72: Types of retirement account, by retirement planning clusters, July 2011
- Figure 73: Have made changes to the amount saved in retirement savings plan(s), by retirement planning clusters, July 2011
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- Figure 74: Total value of all household’s retirement savings accounts, by retirement planning clusters, July 2011
- Figure 75: Retirement planning activities that have been conducted in the past, by retirement planning clusters, July 2011
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- Figure 76: Retirement accounts that have been monitored in the past, by retirement planning clusters, July 2011
- Figure 77: Attitudes about retirement and retirement planning, by retirement planning clusters, July 2011
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- Figure 78: Type of institution most trusted to give retirement planning advice, by retirement planning clusters, July 2011
- Cluster demographic tables
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- Figure 79: Retirement planning clusters, by gender, July 2011
- Figure 80: Retirement planning clusters, by age, July 2011
- Figure 81: Retirement planning clusters, by household income, July 2011
- Figure 82: Retirement planning clusters, by race/Hispanic origin, July 2011
- Figure 83: Retirement account clusters, by education, July 2011
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- Figure 84: Retirement account clusters, by marital/relationship status, July 2011
- Figure 85: Retirement account clusters, by employment, July 2011
- Cluster methodology
Appendix—Simmons Cohort Analysis
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- Optimism is cautiously returning
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- Figure 86: Attitude concerning current personal financial situation, Fall 2008-winter 2011
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- Figure 87: Outlook concerning future personal financial situation, Fall 2008-winter 2011
- Figure 88: Outlook on the American economy, Fall 2008-Winter 2011
Appendix—Trade Associations
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