Preparing for Their Future: A Look at the Financial State of Gen X and ...

2008 ASEC & AARP (on behalf of Divided We Fail) 1 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y POSTED QUESTIONNAIRE

March 2008 Copyright © 2008 American Savings Education Council and AARP Reprinting with Permission
This report is jointly owned by the American Savings and Education Council (ASEC) and AARP. AARP engaged in
this research on behalf of Divided We Fail.

American Savings Education Council (ASEC)
1100 13th Street, NW, Suite 878
Washington, DC 20005
www.choosetosave.org
American Savings Education Council (ASEC) is a program of the Employee Benefit Research Institute (EBRI)
Education and Research Fund, a 501 (c) (3) non-profit organization ( www.ebri.org and www.choosetosave.org ). The ASEC mission: To make saving and retirement planning a priority for all Americans. ASEC is a convener and
connector that brings together public- and private-sector partners to share information on best practices and to
collaborate on financial security initiatives. For more information visit www.choosetosave.org/asec
AARP
601 E Street, NW
Washington, DC 20049 http://www.aarp.org AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and
control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse
candidates for public office or make contributions to either political campaigns or candidates. We produce AARP
The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our
bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; and
our website, http://www.aarp.org. 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. We have
staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.


Mathew Greenwald & Associates of Washington, D.C. conducted the survey on behalf of the American Savings
Education Council (ASEC) and Divided We Fail. Subject matter expertise was provided by Divided We Fail and the
Employee Benefits Research Institute. All media inquiries about this report should be direct to EBRI’s John
MacDonald at (202) 775-6349 or AARP’s Jim Dau or Alejandra Owens at (202) 434-2560. All other inquiries should
be directed to AARP’s Colette Thayer at (202) 434-6294.


Divided We Fail
Divided We Fail, launched nationally in January 2007, has worked to engage the American people, elected officials
and the business community to find broad-based, bi-partisan solutions to the most compelling domestic issues
facing the nation: health care and the long-term financial security of Americans. AARP, Business Roundtable,
Service Employees Union (SEIU), and National Federation of Independent Business (NFIB) are engaging the
American people, businesses, non-profit organizations, and elected officials in finding bi-partisan solutions to
ensure affordable, quality health care and long-term financial security – for all of us. More information about Divided
We Fail efforts can be found at www.dividedwefail.org .
2008 ASEC & AARP (on behalf of Divided We Fail) 2 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y AARP
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and
control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse
candidates for public office or make contributions to either political campaigns or candidates. We produce AARP
The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our
bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; and
our website, http://www.aarp.org. 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. We have
staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.


Business Roundtable
Business Roundtable ( www.businessroundtable.org ) is an association of chief executive officers of leading U.S. companies with $4.5 trillion in annual revenues and more than 10 million employees. Member companies comprise
nearly a third of the total value of the U.S. stock markets and represent over 40 percent of all corporate income
taxes paid. Collectively, they returned $112 billion in dividends to shareholders and the economy in 2005.
Roundtable companies give more than $7 billion a year in combined charitable contributions, representing nearly
60 percent of total corporate giving. They are technology innovation leaders, with $90 billion in annual research and
development spending - nearly half of the total private R&D spending in the U.S.


SEIU
With 1.8 million members, SEIU ( www.seiu.org ) is the fastest-growing union in North America. Focused on uniting workers in three sectors to improve their lives and the services they provide, SEIU is the largest health care union,
including hospitals, nursing homes, and home care; the largest property services union, including building cleaning
and security; and the second largest public employee union.


NFIB
NFIB is the nation’s leading small-business advocacy association, with offices in Washington, D.C. and all 50 state
capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business
owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots
activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus
playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the
right of our members to own, operate and grow their businesses. More information about NFIB is available online at www.NFIB.com. 2008 ASEC & AARP (on behalf of Divided We Fail) 3 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y
NOTE: The survey data are weighted to reflect the makeup of the U.S. population ages 19 to 39
by age, sex, education and race/ethnicity. However, the n’s shown are unweighted. Responses
of less than 0.5% are indicated by *.

Thank you for agreeing to participate in this study. The goal of this study is to learn more about
people your age in terms of their priorities, lifestyles, and financial situations.

The first few questions are to confirm that you qualify for the study.


QUALIFYING QUESTIONS

1. What is your age? Total (n=1752) 19 to 27......................................................................................... 42% 28 to 39......................................................................................... 58 Mean 29 years Median 29 years [NOTE: TERMINATE IF UNDER 19 OR OVER 39]
2. Which one of the following best describes your current employment status? Please only
include paid employment. Do not include volunteer work, unpaid internships, or any
other type of unpaid work. (n=1752) You are employed full-time ........................................................... 65% You are employed part-time.......................................................... 16 You are self-employed either full- or part-time ................................ 6 You have both a full-time and a part-time job.................................. 1 You are not employed [SKIP TO Q4a] .............................................. 13
3. Approximately, how many hours per week do you work? (n=1598) Less than 10 hours per week .......................................................... 5% 10 to 14 hours per week ................................................................. 4 15 to 19 hours per week ................................................................. 2 20 to 24 hours per week ................................................................. 5 25 to 29 hours per week ................................................................. 3 30 to 34 hours per week ................................................................. 6 35 to 39 hours per week ............................................................... 13 40 to 44 hours per week ............................................................... 42 45 to 49 hours per week ............................................................... 11 50 to 54 hours per week ................................................................. 4 55 to 59 hours per week ................................................................. 1 60 hours per week or more ............................................................. 3 2008 ASEC & AARP (on behalf of Divided We Fail) 4 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y ABOUT YOU AND YOUR HOUSEHOLD

4a. Are you of Hispanic, Spanish, or Latino origin or descent?
4b. Which of the following best describes your race or ethnicity? [RACE] (n=1601) Caucasian/White........................................................................... 60%
Hispanic, Spanish, or Latino [FROM Q4A] ....................................... 19 African-American/Black................................................................. 12
Asian............................................................................................... 5
Pacific Islander................................................................................. * Other............................................................................................... 2
Prefer not to answer........................................................................ 1
5. Which one of the following best describes your marital status? (n=1752) Married.......................................................................................... 41%
Single, never married.................................................................... 41 Unmarried, living with partner ....................................................... 11 Divorced.......................................................................................... 4
Separated ....................................................................................... 1
Widowed .......................................................................................... *
Other............................................................................................... 1

6. [IF MARRIED OR PARTNER (Q5=1 or 6)] Which one of the following best describes your spouse’s or partner’s current employment status? Please only include paid employment.
Do not include volunteer work, unpaid internships, or any other type of unpaid work.
(n=991) He/She is employed full-time ........................................................ 70% He/She is employed part-time......................................................... 7 He/She is self-employed either full- or part-time ............................. 5 He/She has both a full-time and a part-time job .............................. 2 He/She is not employed................................................................ 16 2008 ASEC & AARP (on behalf of Divided We Fail) 5 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y
7. [IF MARRIED OR PARTNER (Q5=1 or 6)] Which of the following best describes your role in how financial decisions are made in your household? (n=991) You are the sole decision-maker................................................... 15% You are the primary decision-maker, but your spouse/partner provides input ................................................. 30 You and your spouse/partner make decisions in total partnership ................................................... 51 Your spouse/partner is the primary decision-maker, but you provide input ................................................................. 4 Your spouse/partner is the sole decision-maker .............................. *
8. How well do you feel the following words or phrases describe you? (n=1752) Describes You Very Well Describes You Somewhat Well Does Not Describe You Too Well Does Not Describe You Well At All a. Disciplined 35% 51 12 2 b. Carefree 17% 44 33 6 c. Family-oriented 59% 32 7 1 d. Hard-working 68% 28 4 * e. Expensive taste 17% 27 37 19 f. Technologically savvy 24% 48 21 6 g. Charitable 19% 53 25 3 h. Optimistic 29% 55 12 3

FINANCIAL INDEPENDENCE

9. Do you consider yourself to be “financially independent”? (n=1752) Yes................................................................................................ 57%
No ................................................................................................. 43

10. In the past year, have you received any financial support from family or friends? Please
do not include gifts or bequests. (n=1752) Yes................................................................................................ 33%
No ................................................................................................. 67

11. In the past year, have you received any financial assistance from government programs?
This could include any type of assistance such as, but not limited to, welfare benefits, VA
compensation benefits, Pell Grants, Social Security, or Medicaid benefits. (n=1752) Yes................................................................................................ 18%
No ................................................................................................. 82 2008 ASEC & AARP (on behalf of Divided We Fail) 6 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y
12. [IF EITHER Q10=1 OR Q11=1] Over the past year, approximately how much financial support did you receive from…? Less than $2,500 $2,500 to less than $5,000 $5,000 to less than $10,000 $10,000 or more Not sure a. [IF Q10=1] Family or friends (n=545) 71% 15 4 4 6 b. [IF Q11=1] Government programs (n=267) 36% 25 11 11 17
13. [IF FIN. IND. (Q9=1)] At what age did you become financially independent? (n=1024) 18 or younger................................................................................ 37% 19 to 29......................................................................................... 58 30 to 39........................................................................................... 4 Not sure .......................................................................................... -- Mean 21 years Median 20 years
14. [IF FIN. IND. (Q9=1)] What, if any, event or life stage would you say marked the start of your financial independence? (n=1024) High school graduation ................................................................. 23% Start of college .............................................................................. 14 College graduation........................................................................ 10 When you got your first job ........................................................... 24 Start of graduate school.................................................................. 1 Graduate school graduation............................................................ 2 [IF MARRIED (Q5=1, 3-5)] Getting married........................................... 6 Something else ............................................................................. 19

15. How satisfied would you say you are with your current financial situation? (n=1752) Very satisfied .................................................................................. 9% Somewhat satisfied....................................................................... 44 Not too satisfied ............................................................................ 33 Not at all satisfied.......................................................................... 14
16. Overall, how “financially secure” do you feel you are right now? (n=1752) Very secure..................................................................................... 7% Somewhat secure ......................................................................... 42 Not too secure............................................................................... 36 Not at all secure ............................................................................ 15 2008 ASEC & AARP (on behalf of Divided We Fail) 7 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y
17. Thinking about your current financial situation, to what extent do you agree or disagree
with the following statements? (n=1752) Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree a. Making decisions about money makes you feel
anxious 23% 42 27 8 b. You appreciate the material goods you have, even if
it’s not a lot 56% 39 5 1 c. You can rely on friends and family to help you
financially when you are in a tough situation 29% 38 22 11 d. You have financial goals for yourself 52% 39 8 1 e. You sometimes offer financial advice to others 18% 42 26 13 f. You are proud of how you have lived your life
financially so far 20% 41 25 13 g. You struggle to make ends meet 23% 36 27 14 h. You feel taken advantage of by “the system” 15% 31 30 24 i. You feel you should be more prepared for “a rainy
day” 50% 36 11 3 j. You worry about your financial future, perhaps to the
detriment of enjoying today 27% 37 28 8

GOALS AND PRIORITIES

18. When it comes to your finances, what is your biggest fear or concern? [OPEN-END] (n=1752) Paying bills/Making ends meet/Debt ............................................. 20% Unemployment/Job loss/Career.................................................... 13% Lack of savings/Having enough for an emergency/future..................................................................... 12%
Having enough to support myself/family ....................................... 11% Retirement .................................................................................... 11%
Paying rent/Mortgage/Losing home ................................................ 6% Bankruptcy/Losing all money/Money running out/Investments ......................................................................... 6%
Education ........................................................................................ 5%
Stock market/Economy/Those in office/Inflation/Taxes................... 5% Not having enough money .............................................................. 4% Having an accident/emergency/illness............................................ 3% Health care expenses ..................................................................... 2% Never having enough/Not being able to acquire extras/Not reaching goals .......................................................... 2% Family covered if something happens to me................................... 1% None ............................................................................................... 6%
DK/Not sure .................................................................................... 1% Other............................................................................................... 3%
2008 ASEC & AARP (on behalf of Divided We Fail) 8 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 19a. Thinking about the next ten years, which of the following are goals or priorities for you? Please select all that apply.
19b. [IF MORE THAN 1 ITEM SELECTED IN Q19A] And, thinking about the next ten years, which of the following would you say are the most important goals or priorities for you? Please
select one for each column. [SHOW ONLY ITEMS MARKED AS GOALS IN Q19A] Q19A Q19B [RANDOMIZE A-N] This is a Goal (n=1752) Most Important (n=1741) [IF 2 OR MORE ITEMS SELECTED IN Q19A, SHOW COLUMN] Second Most Important (n=1717) [IF 3 OR MORE ITEMS SELECTED IN Q19A, SHOW COLUMN] Third Most Important (n=1679) a. [IF NOT MARRIED (Q5 ≠ 1)] Getting married 37% 6% 8% 7% b. Advancing your career or earning more money 76% 22 12 8 c. Buying a home or making major improvements to your
home 67% 7 12 10 d. Doing more leisure traveling 57% 1 2 7 e. Focusing on your health 64% 5 6 5 f. Having children or having more
children 44% 3 5 9 g. Living a more spiritual life 43% 10 2 3 h. Minimizing stress in your life 74% 3 7 7 i. Paying basic bills in full and on
time 64% 6 7 6 j. Paying off debt 73% 16 15 10 k. Putting money away for retirement 75% 6 8 11 l. Preparing for a child’s
education 46% 5 6 6 m. Purchasing a car 50% 2 3 6 n. Receiving a higher education or degree for yourself 45% 7 7 5 o. Start a business/Grow a business * * * -- p. Something else [SPECIFY] 1% * * * q. Not sure/None of these 1% [SKIP TO Q21] * * *
20. How confident are you that you will be able to meet your most important goals in the next
ten years? (n=1741) Very confident ............................................................................... 39% Somewhat confident ..................................................................... 53 Not too confident............................................................................. 7 Not at all confident .......................................................................... 1 2008 ASEC & AARP (on behalf of Divided We Fail) 9 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 21. For each of the following, do you think you are behind schedule, ahead of schedule, or on track compared to others your age? (n=1752) Behind Schedule On Track Ahead of Schedule Not Sure a. Career 41% 46 8 5 b. Education 42% 46 7 5 c. Family life 26% 55 14 5 d. Housing 39% 45 13 4 e. Debt 46% 36 15 4 f. Saving for retirement 61% 27 8 4 g. Saving for an emergency or
having savings in general 67% 25 6 2

FINANCIAL LITERACY

22. How knowledgeable do you feel when it comes to…? (n=1752) Very Knowledgeable Somewhat Knowledgeable Not Too Knowledgeable Not At All Knowledgeable a. Eliminating or avoiding debt 32% 52 14 3 b. Buying a home 21% 41 27 11 c. Saving for retirement 15% 47 31 7 d. Buying a car 32% 53 12 3 e. Doing your taxes 26% 40 21 12 f. How the Social Security
system works 14% 31 37 18 g. How to stick to a budget 32% 48 16 4 h. How to invest your money outside of the workplace 15% 31 34 19 i. How to use an iPod 40% 27 15 18
Please answer the next few questions to the best of your ability.

23. If you buy a company’s stock…Please select one response. (n=1752) You own part of the company.................................................... 57% The company will return your original investment to you with interest................................................................... 12 You have lent money to the company............................................. 7 You are liable for the company’s debts ........................................... 1 Not sure ........................................................................................ 22 2008 ASEC & AARP (on behalf of Divided We Fail) 10 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 24. In general, if interest rates go down, then bond prices… Please select one response. (n=1752) Go down........................................................................................ 24% Go up ........................................................................................... 23 Are not affected............................................................................. 12 Not sure ........................................................................................ 40
25. In general, investments that are riskier tend to provide higher returns over time than
investments with less risk. Please select one response. (n=1752) True .............................................................................................. 65% False ............................................................................................. 16
Not sure ........................................................................................ 19
26. What is a reasonable average of annual return that can be expected from a broadly
diversified U.S. stock mutual fund over the long run? Please select one response. (n=1752) 5%................................................................................................. 12%
10%............................................................................................... 25 15%............................................................................................... 14
20%................................................................................................. 6
25%................................................................................................. 2
Not sure ........................................................................................ 41
27. Over the last 20 years in the U.S., the best average returns have been generated by…
Please select one response. (n=1752) Stocks .......................................................................................... 28% Money Market accounts................................................................ 13 Bonds.............................................................................................. 8
CDs................................................................................................. 8
Precious metals .............................................................................. 5 Not sure ........................................................................................ 38
28. To the best of your knowledge, are the following statements true or false? (n=1752)
[RANDOMIZE A-D] True False Not Sure a. Interest earned in a bank savings account is subject to federal income taxes. 66% 18 16 b. Interest paid on credit card bills is tax- deductible. 10% 68 22 c. Interest paid on a mortgage is tax-deductible. 67% 10 23 d. When an employee retires, the money they withdraw from their traditional 401(k) plan is
subject to federal income taxes. 59% 18 23
2008 ASEC & AARP (on behalf of Divided We Fail) 11 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y SAVINGS HABITS AND GOALS

29. Do you currently…? (n=1752) Yes No Not Sure a. Stick to a monthly budget 53% 46 1 b. Have a formal, written financial plan 14% 83 3 c. Have a will 14% 85 1 d. Have a living will (also known as a health care directive) 14% 84 2
30. Do you currently save money on a regular basis? Please do not include retirement plans
offered by your employer. (n=1752) Yes................................................................................................ 50%
No ................................................................................................. 50

31. Do you have an “emergency savings” fund or money that you keep in reserve for
unexpected expenses, like a big car repair, or in case you were to stop receiving income
for any reason? (n=1752) Yes................................................................................................ 38%
No ................................................................................................. 62

32. [IF EMPLOYED (Q2 ≠ 5)] If you were to stop receiving income today from work or other sources, how long would you be able to live on your savings alone? (n=1752) Less than one month .................................................................... 40% 1 to less than 2 months................................................................. 19 2 to less than 3 months................................................................. 11 3 to less than 4 months................................................................... 7 5 to less than 6 months................................................................... 4 6 to less than 8 months................................................................... 5 8 months to less than 1 year ........................................................... 4 1 year or longer............................................................................... 7 Not sure .......................................................................................... 4
33. Given your current income and living situation, do you feel you are saving enough money
for the future? (n=1752) Yes................................................................................................ 17%
No ................................................................................................. 83
2008 ASEC & AARP (on behalf of Divided We Fail) 12 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y DEBT

34. Do you have any of the following types of debt? (n=1752) Yes No Not Sure a. Mortgage 35% 64 * b. Home equity loan 11% 89 * c. Car loan 48% 52 * d. Student loan 31% 69 * e. Credit card 63% 36 1 f. Medical 27% 73 * g. Other 22% 72 6
35. [IF ANY IN Q34b-f=1] Approximately, how much non-mortgage debt do you currently have? [DROP DOWN] (n=1496) Less than $1,000 .......................................................................... 12% $1,000 to $2,499 ............................................................................. 7 $2,500 to $4,999 ........................................................................... 11 $5,000 to $9,999 ........................................................................... 18 $10,000 to $14,999 ....................................................................... 13 $15,000 to $19,999 ......................................................................... 8 $20,000 to $29,999 ....................................................................... 11 $30,000 to $39,999 ......................................................................... 6 $40,000 to $49,999 ......................................................................... 3 $50,000 to $59,999 ......................................................................... 3 $60,000 to $69,999 ......................................................................... 1 $70,000 to $79,999 ......................................................................... 1 $80,000 to $89,999 ......................................................................... 1 $90,000 to $99,999 ......................................................................... 1 $100,000 or more............................................................................ 3 36. [IF HAS DEBT (ANY IN Q34=1)] Thinking about your current financial situation, how would you describe your level of debt? (n=1587) Major problem ............................................................................... 35% Minor problem ............................................................................... 47 Not a problem ............................................................................... 17
2008 ASEC & AARP (on behalf of Divided We Fail) 13 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y ROLE OF THE EMPLOYER

37. To what extent do you agree or disagree with the following statements? (n=1752) Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree a. Employers generally have their employees’ best interest at heart 6% 42 38 14 b. People your age feel loyal to their employers 7% 39 42 12
38. [IF EMPLOYED (Q2 ≠ 5)] Are you currently covered by a traditional pension plan, also known as a defined benefit plan? A defined benefit plan supplies retirees with a monthly income,
typically based on a formula of salary and years of service. It is not a 401(k) plan. (n=1598) Yes, currently covered .................................................................. 23% No, such a plan is available, but you are not covered................... 10 No, no such plan is available ........................................................ 53 Not sure ........................................................................................ 13
39. [IF EMPLOYED (Q2 ≠ 5)] Are you eligible for your employer’s defined contribution retirement savings plan, such as a 401(k) or 403(b)? A defined contribution plan allows you to make
contributions from your salary to an individual account set up in your name. (n=1598) Yes................................................................................................ 50%
No, such a plan is available, but you are not eligible ...................... 9 No, no such plan is available ........................................................ 31 Not sure ........................................................................................ 10
40. [IF EMPLOYED (Q2 ≠ 5) AND IF ELIGIBLE (Q39=1)] Do you personally contribute money to your employer-sponsored 401(k) or 403(b) retirement savings plan? (n=866) Yes................................................................................................ 71%
No ................................................................................................. 27
Not sure .......................................................................................... 2 2008 ASEC & AARP (on behalf of Divided We Fail) 14 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 41. As you may know, employees typically have to sign up to participate in a 401(k)-type
retirement savings plan. Some companies are changing this process, so that workers
are automatically enrolled in the retirement savings plan unless the worker chooses to
opt-out and not participate.
Generally, do you feel it is a good idea or a bad idea for employers to voluntarily enroll
workers automatically in a retirement savings plan and set up automatic contributions
from the workers’ paychecks (provided the worker can opt-out)? (n= 1752 ) Very good idea.............................................................................. 45% Somewhat good idea .................................................................... 40 Somewhat bad idea ...................................................................... 11 Very bad idea.................................................................................. 4 42. Are you currently covered by health insurance? (n=1752) Yes, through your employer .......................................................... 44% [IF MARRIED (Q5=1)] Yes, through your spouse’s employer ............ 11 Yes, from some other source ........................................................ 20 No ................................................................................................. 24
Not sure .......................................................................................... 1 43a. [IF EMPLOYED (Q2 ≠ 5)] How important is it to you that your employer…?
43b. [IF EMPLOYED (Q2 ≠ 5)] Which of these is most important? (n=1598) Very Important Somewhat Important Not Too Important Not At All Important MOST Important a. Provides a retirement savings plan 57% 31 9 2 12% b. Matches or contributes money to a retirement
savings plan in addition to
what you save 59% 30 9 2 21 c. Offers education and/or advice on how to save for
retirement 37% 40 19 5 2 d. Provides health insurance 80% 14 3 2 64 e. Offers a wellness program 39% 39 18 4 1 2008 ASEC & AARP (on behalf of Divided We Fail) 15 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y RETIREMENT

44. In general, how much thought have you given to your own retirement? (n=1752) A great deal of thought.................................................................. 20% Some thought................................................................................ 42 Not too much thought.................................................................... 29 No thought at all.............................................................................. 9
45. At what age do you think you will retire? Your best guess is fine. (n=1752) 49 or younger.................................................................................. 5% 50 to 59......................................................................................... 17 60 to 69......................................................................................... 58 70 to 79......................................................................................... 18 80 or older....................................................................................... 3 Will never retire ............................................................................... -- Not sure .......................................................................................... --
46. Based on what you know about your health, your family history, and other factors, until
what age do you expect to live? Your best guess is fine. (n=1752) 49 or younger.................................................................................. 1% 50 to 59........................................................................................... 1 60 to 69........................................................................................... 6 70 to 79......................................................................................... 21 80 to 89......................................................................................... 44 90 to 99......................................................................................... 20 100 or older..................................................................................... 6 Not sure .......................................................................................... 1
47. Not including Social Security taxes or employer-provided money, have you [IF MARRIED: and/or your spouse ] personally saved any money for retirement? These savings could include money you personally put into a retirement plan at work.
(n=1752) Yes................................................................................................ 38%
No ................................................................................................. 58
Not sure .......................................................................................... 4 2008 ASEC & AARP (on behalf of Divided We Fail) 16 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 48. Below is a list of several possible sources of income in retirement. Which of these do you
think will provide you (and your spouse) with the LARGEST share of income in
retirement? [RANDOMIZE 1-2; 3-6] (n=1752) An employer-sponsored retirement savings plan, such as
a 401(k), tax-deferred annuity or 403(b), 457 thrift savings,
money purchase, or profit-sharing plan......................................... 41%
Other personal savings or investments, not in a work-related
retirement plan, such as individual IRAs, mutual funds,
stocks, CDs, or annuities .............................................................. 19
An employer-provided traditional pension or cash balance plan,
with the benefit typically based on salary and years of service ....... 8
Social Security ................................................................................ 7
Employment .................................................................................... 6
The sale or refinancing of your home.............................................. 2
Something else [SPECIFY] ............................................................... 1 Not sure ........................................................................................ 15
49a. How confident are you that, when you retire, the Social Security system will provide you
with benefits of at least equal value to the benefits received by retirees today? (n=1752) Very confident ................................................................................. 4% Somewhat confident ..................................................................... 19 Not too confident........................................................................... 44 Not at all confident ........................................................................ 34
49b. How confident are you that, when you retire, the Medicare system will provide you
with benefits of at least equal value to the benefits received by retirees today? (n=1752) Very confident ................................................................................. 3% Somewhat confident ..................................................................... 24 Not too confident........................................................................... 44 Not at all confident ........................................................................ 28
50. How confident are you that, when you retire, you will have saved enough money to afford a comfortable lifestyle in retirement? (n=1752) Very confident ............................................................................... 11% Somewhat confident ..................................................................... 47 Not too confident........................................................................... 31 Not at all confident ........................................................................ 11
2008 ASEC & AARP (on behalf of Divided We Fail) 17 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y GENERATIONAL ISSUES

51. What do you think is the most significant financial difference between your generation
and your parents’ generation? [OPEN-ENDED] (n=1752) Cost of living/Things cost more ..................................................... 17% No social security/Medicare .......................................................... 12% Spend more/Don’t save ................................................................ 11% Debt/Credit cards ............................................................................ 9% Retirement/No pensions ................................................................. 5%
They were/are more financially smarter/Saved more/More disciplined spending ................................................ 5% Work environment/Work harder/Change jobs more often ............... 5% Started saving sooner/More educated in saving ............................. 4% Invest money in stocks/more ways/options for investing................. 4% We make more money.................................................................... 3% Economy/Recession ....................................................................... 3%
Government/Government policy/Government spending/Taxes....... 3% No rise in salary .............................................................................. 3% Education/Need a degree ............................................................... 2% Inflation ........................................................................................... 2%
Technology ..................................................................................... 2%
Need two incomes .......................................................................... 1% Healthcare costs ............................................................................. 1% More help from government/Welfare............................................... 1% Less benefits/Supplemental coverage ............................................ 1% Less family support .......................................................................... * Nothing/Not much ........................................................................... 6%
Other............................................................................................... 7%
Don’t know/Refused...................................................................... 10%
52. Do you expect that by the time you are your parents’ age you will have accumulated
more money than your parents, less money, or about the same amount of money as your
parents? (n=1752) More money .................................................................................. 54% About the same............................................................................. 27 Less money................................................................................... 19
53. To the best of your knowledge, do you think it is easier or harder for people in your
generation to do each of the following than it was for your parents’ generation? (n=1752)
[RANDOMIZE] Easier for your generation Same Harder for your generation a. Buying a first home 28% 25 47 b. Finding good employment 24% 32 44 c. Getting an education 54% 24 22 d. Supporting a family 14% 31 54 e. Saving money for the long-term 20% 29 51 f. Saving for a child’s college education 23% 27 50 2008 ASEC & AARP (on behalf of Divided We Fail) 18 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 54. Do you expect to provide some sort of financial support to your parents during their
retirement? (n=1752) Yes................................................................................................ 37%
No ................................................................................................. 34
Not sure ........................................................................................ 29

SOURCES OF INFORMATION

55a. Please indicate whether the following is a major, minor, or not a source of financial advice for you.
55b. [IF MORE THAN ONE SOURCE IN Q55A=3-2] Which of these would you say is your primary source of financial advice? Please select only one response. [SHOW ONLY ITEMS CITED AS A SOURCE IN Q55A (=3-2)] (n=1752)
[RANDOMIZE C-H] Major Source Minor Source Not a Source PRIMARY SOURCE (n=1603) a. Your parents (or in-laws) 38% 32 30 36% b. Other relatives 10% 38 52 3 c. Your friends or co-workers 11% 49 40 5 d. A financial professional 23% 31 46 20 e. Your (or your spouse’s) employer 15% 38 47 7 f. The internet 20% 49 31 16 g. Periodicals (newspaper, magazines,
etc) 11% 44 45 5 h. Television or radio 7% 37 56 2 i. Someone or something else 8% 28 63 5
56. For each of the following, please assign a grade of A, B, C, D, or F. Just like in school,
“A” is the best grade and “F” is a failing grade. How would you grade…? (n=1752)
[RANDOMIZE A-D] A B C D F a. The job your parents did teaching you about saving and investing 18% 28 22 15 16 b. The job your schools did teaching you about saving and investing 4% 14 26 23 33 c. How well you are saving money 8% 23 27 20 22 d. How well you are investing money 6% 21 27 18 29 2008 ASEC & AARP (on behalf of Divided We Fail) 19 Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y 57. How would you define “financial security?” [OPEN-END] (n=1752) Not living paycheck to paycheck/Being able to afford basic needs/Pay bills ..................................................... 22% Be able to save, emergency fund, rainy day fund ......................... 19% Live comfortably/Maintain current lifestyle .................................... 16% Not having to worry about finances/Stress-free/Ability to do what I want/need............................................................. 15% Be able to deal with the unexpected/hard times............................ 13% Having NO debt at all...................................................................... 8% Being able to take care or provide for family/money for children (education) .............................................................. 6% Afford travel/entertainment/leisure/fun ............................................ 5% Be able to retire/Afford retirement/Maintain current lifestyle in retirement...................................................... 5% Have money/Having enough money/Dollar amount (general) ........ 5% (general) Afford extras, spend......................................................... 4% Be able to save for retirement ......................................................... 4% Good job/Steady income/Secure job/Residual income ................... 3% Not being dependent/Financially independent/Self-sufficient.......... 3% Be able to invest/Money to invest/Diversify portfolio ....................... 3% Not work/Work less ......................................................................... 2% Afford house/Own home/Home equity ............................................ 2% Have little debt (some debt, like mortgage, is OK) .......................... 1% Live within means/Income greater than expenses .......................... 1% Afford car/big ticket purchases........................................................ 1% Afford medical/health insurance...................................................... 1% Help

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