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TIAA-CREF 2015 Lifetime Income Survey Summary of Results
Gen Y is guarded about their retirement outlook (more so than Gen X and other generations in many respects):
1. When it comes to retirement savings, how many years are you planning for your retirement savings to allow you to live comfortably?
| Age range | Fewer than 5 years | 5-10 years | 10-15 years | 15-20 years | 20-25 years | More than 25 years | Don’t know |
| 18-34 | 5% | 10% | 18% | 16% | 13% | 34% | 4% |
| 35-44 | 4% | 17% | 14% | 21% | 14% | 29% | 2% |
| 45-54 | 8% | 8% | 27% | 17% | 9% | 22% | 8% |
| 55-64 | 14% | 14% | 6% | 18% | 15% | 21% | 12% |
| 65 and older | 9% | 14% | 12% | 12% | 9% | 18% | 26% |
2. If you could set one primary goal for your retirement plan, what would it be?
| Age Range | Ensure your savings will be safe regardless of what happens in the market | Provide guaranteed monthly income every month to cover your living costs in retirement | Allow you to save a specific amount of money | Allow you to earn a competitive rate of return on your savings |
|---|---|---|---|---|
| 18-34 | 34% | 42% | 9% | 8% |
| 35-44 | 16% | 50% | 19% | 8% |
| 45-54 | 22% | 52% | 12% | 8% |
| 55-64 | 20% | 52% | 5% | 9% |
| 65 and older | 16% | 46% | 4% | 8% |
Gen Y is more confident than other generations about retirement prospects and open to products that can generate lifetime income:
3. How concerned are you that you will run out of money in retirement?
| Age range | Concerned | Not concerned |
|---|---|---|
| 18-34 | 42% | 58% |
| 35-44 | 57% | 43% |
| 45-54 | 57% | 41% |
| 55-64 | 45% | 55% |
| 65 and older | 33% | 66% |
4. How willing would you be to commit a portion of your retirement savings to a choice that will allow you to receive a monthly payment for life?
| Age range | Total willing | Total not willing |
|---|---|---|
| 18-34 | 61% | 37% |
| 35-44 | 57% | 43% |
| 45-54 | 56% | 42% |
| 55-64 | 41% | 55% |
| 65 and older | 20% | 73% |
5. How familiar are you with annuities?
| Age range | Familiar | Not familiar |
|---|---|---|
| 18-34 | 26% | 72% |
| 35-44 | 24% | 76% |
| 45-54 | 35% | 65% |
| 55-64 | 48% | 51% |
| 65 and older | 42% | 55% |
6. Have you purchased an annuity or do you plan to in the future?
| Age range | Yes, I have already purchased an annuity | No, but I plan to at some point prior to retirement | No, but I plan to when I retire | No, I do not plan to | Don’t know |
|---|---|---|---|---|---|
| 18-34 | 14% | 16% | 10% | 52% | 9% |
| 35-44 | 8% | 9% | 5% | 62% | 16% |
| 45-54 | 17% | 8% | 8% | 60% | 7% |
| 55-64 | 14% | 8% | 5% | 65% | 7% |
| 65 and older | 18% | 1% | 1% | 75% | 6% |
But Gen Y is still falling short on some key areas:
7. What percentage of your current annual income are you currently saving for retirement, including all savings, such as employer contributions?
| Age range | None | 1-3% | 4-6% | 7-10% | More than 10% |
|---|---|---|---|---|---|
| 18-34 | 31% | 12% | 17% | 16% | 22% |
| 35-44 | 28% | 15% | 11% | 17% | 25% |
| 45-54 | 27% | 11% | 13% | 21% | 27% |
| 55-64 | 31% | 7% | 9% | 15% | 34% |
Survey Methodology
The survey was conducted by KRC Research by phone among a national random sample of 1,000 adults, age 18 years and older, from Jan. 7 to 13, 2015, using a combination of landline and cell phone interviews. The margin of error for the entire sample is plus or minus 3.1 percentage points.
About TIAA-CREF
TIAA-CREF (www.tiaa.org) is a national financial services organization with $866 billion in assets under management (as of 3.31.15) and is a leading provider of retirement services in the academic, research, medical and cultural fields.
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