AARP Annuities Survey May 2010 To: AARP : Mike Dennis, …...AARP Annuities Survey May 2010 -...

AARP Annuities Survey May 2010

- Annotated Questionnaire -

Government & Academic Research

To: AARP From: Mike Dennis, Joe Garret, Larry Osborn Date: May 12, 2010 Re: AARP Annuities Survey

Field period: April 22 – April 26, 2010 N interviews (weighted): 2420

Qualification rate (overall): 27.3% (8869 completed, 2420 qualified)

All results include qualified respondents. Columns “Workers” and “Retirees” are weighted using the work group weight. Column “Total” is weighted using the total weight. “Refused” responses are counted towards the bases. Row “N” is unweighted.

Results for questions with insufficient bases (less than 100 total responses or less than 95 workers or retirees) are not displayed.

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KEY DEMOGRAPHICS

Gender Workgroup Total

Workers Retirees

N 1,750 670 2,420

Male 51.7% 50.1% 51.5%

Female 48.3% 49.9% 48.5%

Education level (AARP categories) Workgroup Total

Workers Retirees

N 1,750 670 2,420

Some high school or less 2.5% 2.2% 2.4%

High school graduate or equivalent 25.8% 34.3% 26.8%

Some college or technical training beyond high school 28.4% 29.6% 28.5%

Bachelors degree, or 24.3% 19.1% 23.6%

Graduate or professional degree 18.5% 14.6% 18.1%

Refused 0.6% 0.1% 0.5%

Race/Ethnicity Workgroup Total

Workers Retirees

N 1,750 670 2,420

White, Non-Hispanic 80.4% 77.3% 80.0%

Black, Non-Hispanic 6.2% 11.6% 6.9%

Other, Non-Hispanic 5.8% 1.9% 5.3%

Hispanic 6.8% 8.2% 7.0%

2+ Races, Non-Hispanic 0.8% 0.9% 0.8%



SCREENER QUESTIONS

[SP]

PROMPT ONCE S2.

Which statement best describes your current employment status?

Workgroup Total

Workers Retirees

N 1,750 670 2,420

Working – as a paid employee 83.9% 8.3% 74.4%

Working – self-employed 10.6% 4.6% 9.8%

Not working – on temporary layoff from a job 0.5% 0.0% 0.4%

Not working – looking for work 5.0% 1.0% 4.5%

Not working – retired 0.0% 86.0% 10.8%

Not working – disabled 0.0% 0.0% 0.0%

Not working – other 0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

IF S2=6 OR 7 OR REFUSED, TERMINATE

ASK IF S2=1 OR 2:

[SP]

PROMPT ONCE Which of the following best describes your current work situation?

Workgroup TotalWorkers Retirees

N 1,612 Insufficient base 1,677

Working on a full-time basis 86.8% 85.4%

Working on a part-time basis 13.2% 14.6%

Refused 0.0% 0.0%

ASK IF S2=1,2,3,4: ALL EXCEPT THOSE WHO SELECTED “RETIRED”: [AUTO FILL FOR RETIRED PER BELOW INSTRUCTIONS]



[SP]

PROMPT ONCE S3. Which of the following best describes you?


N 1,750 670 2,420

Not retired 100.0% 0.0% 87.5%

Retired 0.0% 100.0% 12.5%

Refused 100.0% 100.0% 0.0%

IF S2=5, AUTOFILL S3=2. TERMINATE IF (PPAGE


[MP]

PROMPT ONCE S5. Which of the following retirement plans or retirement accounts [IF S3=1 (WORKER): do you have /

IF S3=2 (RETIRED): have you ever had?] (IF S3=2 (RETIRED): Please include any retirement plans or accounts that you currently have as well as any that you had before you retired even if you no longer have them.)

An employer-sponsored defined contribution retirement savings plan, such as a 401(k) or 403(b) plan, a thrift savings plan (TSP), a 457 plan, a money purchase plan, a supplemental retirement account (SRA), or an employee stock option plan (ESOP). In these types of plans, the final value in the account depends on the value of your contributions and/or your employer’s contributions and the rate of return to those contributions.


N 1,750 670 2,420

Yes 63.9% 59.7% 63.4%

No 36.1% 40.3% 36.6%

An employer-provided traditional pension plan, also called a traditional defined benefit plan. In this type of plan, the benefits that you receive at retirement usually take the form of monthly payments for life. The traditional pension benefits are funded entirely by your employer based on a formula that takes into account your salary and the number of years that you have worked for the employer.


N 1,750 670 2,420

Yes 31.0% 58.8% 34.4%

No 69.0% 41.2% 65.6%

An employer-provided cash balance plan, a newer kind of defined benefit plan. This type of plan is different from a traditional pension plan because the benefits in a cash balance plan are usually expressed as the total value of your account rather than as monthly payments. Your cash balance account is entirely funded by your employer and grows over time based on employer contributions and interest on the account balance.


N 1,750 670 2,420

Yes 2.7% 3.9% 2.9%

No 97.3% 96.1% 97.1%



An individual retirement account, or IRA. This is a tax-favored account that you usually set up yourself at a bank or other financial institution to save for retirement. You may have opened an IRA when you left a previous employer and rolled over assets from your previous employer-sponsored retirement savings plan.


N 1,750 670 2,420

Yes 47.2% 60.1% 48.8%

No 52.8% 39.9% 51.2%

Refused Workgroup Total

Workers Retirees

N 1,750 670 2,420

Yes 0.0% 0.0% 0.0%

No 100.0% 100.0% 100.0%

TERMINATE IF “NO” TO ALL FOUR TYPES OF ACCOUNTS.



[NUMBER BOX GRID; RANGE 0-99] [ONLY SHOW ITEMS SELECTED IN S5] PROMPT IF ANY REFUSED S6. How many of each of the following types of retirement plans or retirement accounts [IF S3=1 (WORKER): do you have / IF S3=2 (RETIRED): have you ever had? (IF S3=2 (RETIRED): Please include any retirement plans or accounts that you currently have as well as any that you had before you retired even if you no longer have them.)



N 1,124 411 1,535

1 84.7% 75.8% 83.7%

2 11.8% 17.3% 12.5%

3 2.1% 4.0% 2.3%

4 or more 1.4% 3.0% 1.6%

Refused 0.0% 0.0% 0.0%



N 589 398 987

1 93.0% 81.9% 90.5%

2 6.5% 12.2% 7.7%

3 0.4% 3.8% 1.2%

4 or more 0.2% 2.0% 0.6%

Refused 0.0% 0.0% 0.0%




Results not displayed due to insufficient base.



N 865 448 1,313

1 62.8% 67.0% 63.5 %

2 25.5% 15.4% 23.9%

3 6.9% 7.2% 6.9%

4 or more 4.8% 10.4% 5.6%

Refused 0.0% 0.0% 0.0%

IF S5=1 AND S6_1=0 OR REFUSED, THEN TERMINATE. IF S5=2 AND S6_2=0 OR REFUSED, THEN TERMINATE. IF S5=3 AND S6_3=0 OR REFUSED, THEN TERMINATE. IF S5=4 AND S6_4=0 OR REFUSED, THEN TERMINATE.



[SP] [ASK IF MORE THAN 1 ACCOUNT IS LISTED IN S6]

PROMPT ONCE[ONLY SHOW ITEMS SELECTED IN S5] S7. Of the retirement plans or retirement accounts that you marked in the previous question, which one would you consider to be the most important financially for your retirement?


N 1,750 670 2,420


46.4% 29.0% 44.2%


24.2% 40.4% 26.2%


1.0% 1.2% 1.1%


28.4% 29.4% 28.5%

Refused 0.0% 0.0% 0.0%

IF S6 GRID ONLY HAD 1 TYPE OF ACCOUNT, AUTOFILL S7 WITH S6 RESPONSE. TERMINATE IF S7=REFUSED.



CREATE DATA-ONLY VARIABLE PLAN. IF S7=1, PLAN=1 (DC)

IF S7=2 OR 3, PLAN=2 (DB)

IF S7=4, PLAN=3 (IRA)

[SP]

PROMPT ONCE

S8. This question is only about the [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] that you consider to be the most important financially for your retirement. Are you currently receiving payments from this [IF PLAN=1 OR 2: plan; IF PLAN=3: account] or have you ever received a payment from this [IF PLAN=1 OR 2: plan; IF PLAN=3: account]? (Do not include loans from a defined contribution plan.)


N 1,750 670 2,420

Yes, I am currently receiving payments from this [IF PLAN=1 OR 2: plan; IF PLAN=3: account] or I have received a payment from this [IF PLAN=1 OR 2: plan; IF PLAN=3: account].

0.0% 100.0% 12.5%

No 100.0% 0.0% 87.5%

Refused 0.0% 0.0% 0.0%

TERMINATE IF S3=2 (RETIRED) AND S8=2 (NO) OR REFUSED TERMINATE IF S3=1 (NOT RETIRED) AND S8=1 (YES) OR REFUSED

S9. Missing



[ASK IF S3=1 (NOT RETIRED)]

[SP]

PROMPT ONCE

S10. You just indicated that you have not received at least one payment from the [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] that you consider to be most important financially for your retirement. Have you ever received a payment from any other retirement plans or retirement accounts? (Do not include loans from a defined contribution plan.)


N 1,750 0 1,750

Yes 0.0% 0.0% 0.0%

No 100.0% 0.0% 100.0%

Refused 0.0% 100.0% 0.0%

TERMINATE IF S3=NOT RETIRED AND (S10=YES OR REFUSED)

[ASK IF S3=2 (RETIRED)] [SP]

PROMPT ONCE

S11. When did you receive your first payment from the [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] that you consider to be most important financially for your retirement? (Do not include loans from a defined contribution plan.)


N 0 670 670

Within the past 12 months 0.0% 38.4% 38.4%

Within the past 3 years but more than 12 months ago 0.0% 61.6% 61.6%

More than 3 years ago 0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

TERMINATE IF S11=3 OR REFUSED



Verification Page(s):

[SP] QVer1. So far, you have indicated that you [IF S3=1 (WORKER): have; IF S3=2 (RETIRED): have or

have had] the following types of retirement plans or accounts:

[LIST RESPONSES FROM S6 WITH THE #S PROVIDED IN EACH PART OF S6] Is this correct?


N 1,750 670 2,420

Yes 100.0% 100.0% 100.0%

No 0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

IF QVER1=2 OR REFUSED, LOOP THROUGH S5-S11 AGAIN. THEN SHOW QVER1 AGAIN. DO NOT LOOP MORE THAN 2 TIMES. IF QVER1=2 OR REFUSED ON THE SECOND LOOP, THEN TERMINATE.

[ASK IF MORE THAN ONE TYPE OF ACCOUNT IS SHOWN AND GREATER OR EQUAL 1 IN S6] [SP] QVer2. You also indicated that, of the retirement plans /accounts below, the one checked is the one

that you consider to be most important financially for your retirement. Is this correct?

[LIST EACH TYPE SELECTED IN S5 AND SHOW CHECK MARK NEXT TO THE ONE THAT RESPONDENT HAD DESIGNATED AS MOST IMPORTANT IN S7]


N 695 424 1,119

Yes 100.0% 100.0% 100.0%

No 0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

IF QVER2=2 OR REFUSED, LOOP THROUGH S7-S11 AGAIN. THEN SHOW QVER2 AGAIN. DO NOT LOOP MORE THAN 2 TIMES. IF QVER2=2 OR REFUSED ON THE SECOND LOOP, THEN TERMINATE.



[ASK IF S8=YES] [SP] QVer3. You also indicated that you are currently receiving payments from or have received a payment

from this [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] that you consider to be most important financially for your retirement. Is this correct? (Do not include loans from a defined contribution plan.)


N 0 670 670

Yes, this is correct. 0.0% 100.0% 100.0%

No, I have not received any payments from the [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] that I consider to be most important financially for my retirement

0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

TERMINATE IF S3=2 (RETIRED) AND (QVER3=2 OR REFUSED).

[ASK IF S3=1 (WORKER) AND S8=NO AND S10=NO] [SP] QVer4. You also indicated that you have never received a payment from a retirement plan or a

retirement account, such as a traditional employer-provided pension plan, an employer-provided defined contribution plan (401(k), 403(b), or other similar plans), an employer-provided cash balance plan, or an IRA. Is this correct? (Do not include loans from a defined contribution plan.)


N 1,750 0 1,750

Yes, this is correct. 100.0% 0.0% 100.0%

No, this is not correct. I have received a payment from at least one of these retirement plans or retirement accounts.

0.0% 0.0% 0.0%

Refused 0.0% 0.0% 0.0%

TERMINATE IF QVER4=2 OR REFUSED



[ASK IF PLAN=1 OR 2: DC/ PENSION/CASH BALANCE (EXCLUDES THOSE FOR WHOM MOST IMPORTANT

ACCOUNT IS IRA)]

[SP]

S12. How long did you work (or have you worked) for the employer that provided the [IF S7=1: defined

contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan] that you consider to be the most important financially for your retirement?


N 1,248 456 1,704

Less than 5 years 9.8% 1.7% 8.8%

At least 5 but less than 10 years 15.2% 6.8% 14.1%



20 years or more 43.1% 71.7% 46.6%

Refused 0.5% 0.8% 0.6%

CREATE DATA-ONLY VARIABLE WORKGROUP. WORKGROUP=1 (WORKER) IF AGES 50-75, DOESN’T CONSIDER SELF RETIRED, NOT CURRENTLY RECEIVING RETIREMENT PAYMENTS, AND NEVER RECEIVED RETIREMENT PAYMENT: PPAGE=50-75 AND S3=1 AND S8=2 AND S10=2 AND QVER4=1 WORKGROUP=2 (RECENT RETIREE) IF AGES 59-75, CONSIDERS SELF RETIRED, EITHER CURRENTLY RECEIVING RETIREMENT PAYMENTS OR EVER RECEIVED A RETIREMENT PAYMENT FROM MOST IMPORTANT RETIREMENT ACCOUNT, AND RECEIVED FIRST PAYMENT FROM MOST IMPORTANT RETIREMENT ACCOUNT WITHIN THE PAST 3 YEARS: PPAGE=59-75 AND S3=2 AND S8=1 AND S11=1, 2 AND QVER3=1 TERMINATE IF (WORKGROUP NE 1 AND NE 2) OR (XRETIRE=2 AND WORKGROUP=1).



SURVEY QUESTIONS

Q1. Missing

CREATE DATA-ONLY VARIABLE MULTIPLE.

MULTIPLE=1 IF (IF S7=1 AND S6_1>1) OR (IF S7=2 AND S6_2>1) OR (IF S7=3 AND S6_3>1) OR (IF S7=4 AND S6_4>1).

ELSE MULTIPLE=0.

[SHOW IF MULTIPLE=1: RESPONSE TO S6 SUGGESTS THAT RESPONDENT HAS MORE THAN ONE

ACCOUNT/PLAN OF THE SAME TYPE AS THE TYPE SELECTED IN S7 (THEIR MOST IMPORTANT)] [DISPLAY]

Q2R_INTRO.

Earlier you indicated that you [IF S3=1 (WORKER): have / IF S3=2 (RETIRED): have had] more than one [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA]. For the rest of the survey, we will refer to your largest or most important [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA] as your most important [IF S7=1: defined contribution retirement savings plan; IF S7=2: traditional pension plan; IF S7=3: cash balance plan; IF S7=4: IRA].

[ASK IF RETIRED AND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE MOST IMPORTANT PLAN IS TRADITIONAL PENSION): S3=2 AND (S7=1,3,4)]



[SP] Q2-r. Earlier you indicated that you are currently receiving payments or have received a payment from

your [IF MULTIPLE=1: FOR S7=1: most important defined contribution retirement savings plan; FOR S7=3: most important cash balance plan; FOR S7=4: most important IRA]; [IF MULTIPLE=0: FOR S7=1: defined contribution retirement savings plan; FOR S7=3: cash balance plan; FOR S7=4: IRA].

Before you received any payments from your [IF MULTIPLE=1: FOR S7=1: most important defined contribution retirement savings plan; FOR S7=3: most important cash balance plan; FOR S7=4: most important IRA]; [IF MULTIPLE=0: FOR S7=1: defined contribution retirement savings plan; FOR S7=3: cash balance plan; FOR S7=4: IRA], what was your total balance in this account? (If you’re not sure, please provide your best guess.)


N 0 394 394

Less than $2,500 0.0% 2.0% 2.0%

At least $2,500 but less than $10,000 0.0% 8.0% 8.0%





$250,000 or more 0.0% 18.8% 18.9%

Refused 0.0% 2.0% 2.0%



[ASK IF WORKER AND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE MOST IMPORTANT PLAN IS TRADITIONAL PENSION): S3=1 AND (S7=1,3,4)] [SP] Q2-w. What is your current total balance in your [IF MULTIPLE=1: FOR S7=1: most important defined

contribution retirement savings plan; FOR S7=3: most important cash balance plan; FOR S7=4: most important IRA]; [IF MULTIPLE=0: FOR S7=1: defined contribution retirement savings plan; FOR S7=3: cash balance plan; FOR S7=4: IRA]? (If you’re not sure, please provide your best guess.)


N 1,318 0 1,318

Less than $2,500 7.4% 0.0% 7.4%






$250,000 or more 10.6% 0.0% 10.7%

Refused 3.2% 0.0% 3.2%



[ASK IF WORKER AND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE MOST IMPORTANT PLAN IS TRADITIONAL PENSION): S3=1 AND (S7=1,3,4)] [SP] Q2-wb. When you retire, what do you expect the total balance to be in your [IF MULTIPLE=1: FOR

S7=1: most important defined contribution retirement savings plan; FOR S7=3: most important cash balance plan; FOR S7=4: most important IRA]; [IF MULTIPLE=0: FOR S7=1: defined contribution retirement savings plan; FOR S7=3: cash balance plan; FOR S7=4: IRA]? (If you’re not sure, please provide your best guess.)


N 1,318 0 1,318

Less than $2,500 2.6% 0.0% 2.6%






$250,000 or more 23.6% 0.0% 23.6%

Refused 3.5% 0.0% 3.6%



[ASK IF THE SUM OF S6_1 – S6_4 RESPONSES IS GREATER THAN 1] [SP] PROMPT ONCE

Q3. Other than your [IF MULTIPLE=1: FOR S7=1: most important defined contribution retirement savings plan; FOR S7=2: most important traditional pension plan; FOR S7=3: most important cash balance plan; FOR S7=4: most important IRA]; [IF MULTIPLE=0: FOR S7=1: defined contribution retirement savings plan; FOR S7=2: traditional pension plan; FOR S7=3: cash balance plan; FOR S7=4: IRA] and Social Security, do you [IF S3=1 (WORKER): have / IF S3=2 (RETIRED): currently have or have you ever had] another retirement plan or retirement account that you consider to be important for your retirement? (Please only include retirement plans or retirement accounts rather than non-retirement accounts.)


N 1,750 670 2,420

Yes 28.5% 27.8% 28.4%

No 71.5% 72.2% 71.6%

Refused 0.0% 0.0% 0.0%

[AUTO FILL “NO” IF THE SUM OF S6_1 – S6_4 RESPONSES IS EQUAL 1]



[ASK IF Q3=YES]

[ONLY SHOW ITEMS SELECTED IN S5]

PROMPT ONCE [SP]

Q4. Which of the following best describes the other retirement plan or account that you consider to be

important for your retirement? (If you’re not sure, please provide your best guess.) Workgroup Total

Workers Retirees

N 550 232 782


41.4% 29.2% 39.9%


15.9% 28.1% 17.4%


1.0% 0.5% 0.9%


41.8% 42.2% 41.8%

Refused 0.0% 0.0% 0.0%

TERMINATE IF Q4=REFUSED.



[SHOW IF MOST IMPORTANT PLAN AND 2ND MOST IMPORTANT PLAN ARE NOT THE SAME TYPE (S7 NE Q4) AND S6 RESPONSE SUGGESTS THAT RESPONDENT HAS MORE THAN ONE ACCOUNT/PLAN OF THE SAME TYPE AS THE TYPE SELECTED IN Q4 (THEIR SECOND MOST IMPORTANT)]: IF (Q4=1 AND S7 NE Q4 AND S6_1>1) OR (Q4=2 AND S7 NE Q4 AND S6_2>1) OR (Q4=3 AND S7 NE Q4 AND S6_3>1) OR (Q4=4 AND S7 NE Q4 AND S6_4>1) [DISPLAY] IMP_NONEQ

Earlier you indicated that you [IF S3=1 (WORKER): have / IF S3=2 (RETIREE): have had] more than one [IF Q4=1: defined contribution retirement savings plan; IF Q4=2: traditional pension plan; IF Q4=3: cash balance plan; IF Q4=4: IRA]. For the rest of the survey, we will refer to the important [IF Q4=1: defined contribution retirement savings plan; IF Q4=2: traditional pension plan; IF Q4=3: cash balance plan; IF Q4=4: IRA] that you identified on the previous page as your most important [IF Q4=1: defined contribution retirement savings plan; IF Q4=2: traditional pension plan; IF Q4=3: cash balance plan; IF Q4=4: IRA].

SHOW IF MOST IMPORTANT PLAN AND 2ND MOST IMPORTANT PLAN ARE SAME TYPE (S7=Q4) [DISPLAY] IMP_EQ For the rest of the survey, we will refer to the other important [IF Q4=1: defined contribution retirement savings plan; IF Q4=2: traditional pension plan; IF Q4=3: cash balance plan; IF Q4=4: IRA] that you identified on the previous page as your second most important [IF Q4=1: defined contribution retirement savings plan; IF Q4=2: traditional pension plan; IF Q4=3: cash balance plan; IF Q4=4: IRA].

[DEPENDING ON ANSWERS TO ABOVE QUESTION, REFER TO 2ND MOST IMPORTANT PLAN AS ONE OF THE

FOLLOWING:

--[IF 2ND MOST IMPORTANT PLAN IS NOT SAME TYPE AS 1ST AND RESPONDENT ONLY HAS ONE OF THIS TYPE: “[DEFINED CONTRIBUTION RETIREMENT SAVINGS PLAN/ TRADITIONAL PENSION PLAN/CASH BALANCE PLAN / IRA]”: [IF S7 NE 1 AND Q4=1 AND S6_1=1: defined contribution retirement savings plan]

[IF S7 NE 2 AND Q4=2 AND S6_2=1: traditional pension plan]

[IF S7 NE 3 AND Q4=3 AND S6_3=1: cash balance plan]

[IF S7 NE 4 AND Q4=4 AND S6_4=1: IRA]

---[IF 2ND MOST IMPORTANT PLAN IS NOT SAME TYPE AS 1ST AND RESPONDENT HAS MORE THAN ONE OF THIS TYPE: “MOST IMPORTANT [DEFINED CONTRIBUTION RETIREMENT SAVINGS PLAN/ TRADITIONAL PENSION

PLAN/CASH BALANCE PLAN / IRA]”.

[IF S7 NE 1 AND Q4=1 AND S6_1>1: most important defined contribution retirement savings plan]

[IF S7 NE 2 AND Q4=2 AND S6_2>1: most important traditional pension plan]

[IF S7 NE 3 AND Q4=3 AND S6_3>1: most important cash balance plan]

[IF S7 NE 4 AND Q4=4 AND S6_4>1: most important IRA]

---[IF 2ND MOST IMPORTANT PLAN IS SAME TYPE AS 1ST: “YOUR SECOND MOST IMPORTANT [DEFINED

CONTRIBUTION RETIREMENT SAVINGS PLAN/ TRADITIONAL PENSION PLAN/CASH BALANCE PLAN / IRA]”.

[IF S7 =Q4=1 : second most important defined contribution retirement savings plan]

[IF S7 =Q4=2: second most important traditional pension plan]

[IF S7 =Q4=3: second most important cash balance plan]

[IF S7 =Q4=4: second most important IRA]

CREATE DATA-ONLY VARIABLE “INSERT_SECOND_PLAN” TO INSERT IN THE QUESTIONS THAT FOLLOW BASED ON THE INSTRUCTION ABOVE.



CREATE DATA-ONLY VARIABLE PLAN2. IF Q4=1, PLAN2=1 (DC) IF Q4=2 OR 3, PLAN2=2 (DB) IF Q4=4, PLAN2=3 (IRA)

[ASK IF Q4= 1, 2, 3 (DC, PENSION, OR CASH BALANCE (EXCLUDES THOSE FOR WHOM IRA IS 2ND MOST

IMPORTANT PLAN))]

[SP]

Q4-b. How long did you (or have you) worked for the employer that provided your

[INSERT_SECOND_PLAN]? Workgroup Total

Workers Retirees

N 339 150 489

Less than 5 years 16.9% 1.9% 15.0%




20 years or more 39.3% 50.0% 40.7%

Refused 0.0% 0.0% 0.0%



[ASK IF S3=2 (RETIRED) AND NOT MISSING (PLAN2)]

[PROMPT ONCE]

[SP]

Q5. Are you currently receiving payments from your [INSERT_SECOND_PLAN], or have you ever received

a payment from this [IF PLAN2=1 OR 2: plan; IF PLAN2=3: account]? (Do not include loans from a

defined contribution plan.)


N 0 232 232

Yes, I am currently receiving payments from this [IF PLAN2=1 OR 2: plan; IF PLAN=3: account] or I have received a payment from this [IF PLAN2=1 OR 2: plan; IF PLAN=3: account].

51.6% 51.5%

No 48.4% 48.5%

Refused 0.0% 0.0%

[ASK IF Q5=1 (YES) AND Q4=1, 3, 4 (2ND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE 2ND MOST IMPORTANT PLAN IS TRADITIONAL PENSION))] [SP] Q6a. Before you received any payments from your [INSERT_SECOND_PLAN], what was your total

balance in this account? (If you’re not sure, please provide your best guess.) [ASK IF (S3=1 OR Q5=2 (NO)) AND Q4=1, 3, 4 (2ND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE 2ND MOST IMPORTANT PLAN IS TRADITIONAL PENSION))] Results not displayed due to insufficient base.

[SP] Q6b. What is your current total balance in your [INSERT_SECOND_PLAN]? (If you’re not sure, please

provide your best guess.) Workgroup Total

Workers Retirees

N 445 Insufficient base 538

Less than $2,500 4.1% 4.5%

At least $2,500 but less than $10,000 9.1% 8.6%







$250,000 or more 8.6% 9.6%

Refused 2.9% 2.9%



[ASK IF (S3=1 OR Q5=2 (NO)) AND Q4=1, 3, 4 (2ND MOST IMPORTANT PLAN IS DEFINED CONTRIBUTION PLAN, CASH BALANCE PLAN, OR IRA (EXCLUDES RESPONDENTS WHOSE 2ND MOST IMPORTANT PLAN IS TRADITIONAL PENSION))] [SP] Q6b-c. What do you expect the total balance to be in your [INSERT_SECOND_PLAN] [IF S3=1 (WORKER):

when you retire / IF S3-2 (RETIREE) AND Q5=NO: just before you start receiving payments from it]? (If you’re not sure, please provide your best guess.)



Less than $2,500 0.0% 0.6%






$250,000 or more 17.7% 18.2%

Refused 2.6% 2.6%



[sp] Q7. How familiar would you say you are with a financial product called an annuity, that provides a

series of payments guaranteed to last for a specified period of time? For example, a “life annuity” provides a series of payments guaranteed to last for life.


N 1,750 670 2,420

Very familiar 11.8% 20.9% 12.9%

Somewhat familiar 39.3% 45.8% 40.1%

Not too familiar 28.8% 20.6% 27.8%

Not at all familiar 19.7% 11.8% 18.7%

Refused 0.5% 0.9% 0.5%

[SP]

PROMPT ONCE Q7-b . Are you …?


N 1,750 670 2,420

Married 61.0% 60.5% 60.9%

Living as married or with a partner 4.2% 2.7% 4.0%

Separated 1.7% 1.2% 1.6%

Divorced 17.3% 13.4% 16.8%

Widowed 2.9% 13.6% 4.2%

Never married 12.9% 8.6% 12.4%

Refused 0.0% 0.0% 0.0%



CREATE DATA-ONLY VARIABLE MARRIED.

IF Q7_B=1 MARRIED=1.

IF Q7_B=2-6 OR REFUSED MARRIED=0.

CREATE DATA-ONLY VARIABLE PARTNERED.

IF Q7_B=2 PARTNERED=1.

IF Q7_B=1,3,4,5,6 OR REFUSED PARTNERED=0.

CREATE DATA-ONLY VARIABLE ABC. RANDOMLY ASSIGN 1/3 RESPONDENTS TO ABC=1, 1/3 RESPONDENTS TO ABC=2 AND 1/3 RESPONDENTS TO ABC=3.

Screens to show (without question)

[SHOW IF ABC=1] [DISPLAY] A.

Many financial planners recommend that the average worker needs to replace about 70-80 percent of their income in retirement. For example, the average person who makes $50,000 per year before retirement would need to have Social Security, pensions, and savings sufficient to generate about $35,000 to $40,000 per year in retirement. By comparison, the Social Security benefit for workers who earned about $50,000 per year is only about $22,000 per year.

[SHOW IF ABC=2] [DISPLAY] B. Some financial planners recommend that retirees make sure that they have enough guaranteed income to meet their routine living expenses. This means that you would need Social Security and other guaranteed monthly income in retirement to cover your food, housing, medical expenses, and other basic needs.



[ASK IF MOST IMPORTANT PLAN IS TRADITIONAL PENSION PLAN OR CASH BALANCE PLAN: S7=2 OR 3]

[PROMPT ONCE]

[SP]

Q8. Earlier you indicated that your most important retirement plan/account is a [IF S7=2: traditional pension plan; IF S7=3: cash balance plan]. All [IF S7=2: traditional pension plans; IF S7=3: cash balance plans] offer participants the ability to receive their pension payments as a series of equal monthly payments guaranteed to last for the rest of your life. However, some [IF S7=2: traditional pension plans; IF S7=3: cash balance plans] also offer participants the option to choose to receive one lump-sum payment of the full account balance (or part of the balance) instead of requiring all participants to take only monthly payments for life.

To the best of your knowledge, [IF S3=1 (WORKER): does; IF S3=2 (RETIREE): did] your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] offer participants the option to choose to receive one lump-sum payment of the full account balance (or part of the balance)?


N 456 283 739

Yes 29.7% 31.5% 30.0%

No 42.6% 54.8% 45.0%

Don’t know 27.7% 13.6% 25.0%

Refused 0.0% 0.0% 0.0%



[ASK IF SELECTED YES IN Q8]

[PROMPT ONCE]

[SP]

Q9. [IF S3=1 (WORKER): Are you; [IF S3=2 (RETIREE): Were you] allowed to choose to receive payments

from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] in a combination of ways or only one way? (For example, [IF S3=1 (WORKER): can; IF S3=2 (RETIREE): could] you take part of your balance as a lump-sum payment and the remaining part

as monthly payments, or [IF S3=1 (WORKER): can; IF S3=2 (RETIREE): could] you choose to receive

payments in only one way?)

[ROTATE THE ORDER OF RESPONSE OPTIONS 1 AND 2]


N 142 96 238

A combination of ways 44.3% 56.8% 46.6%

Only one way 27.5% 31.8% 28.5%

Don’t know 28.2% 11.4% 24.9%

Refused 0.0% 0.0% 0.0%



[ASK IF Q8=YES (MOST IMPORTANT TRADITIONAL PENSION/CB PLAN OFFERS LUMP SUM OPTION)] [PROMPT ONCE]

[SP]

Q10. How [IF S3=1 (WORKER): do you plan to; [IF S3=2 (RETIREE): did you] choose to receive your

payments from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan]?

[ROTATE THE ORDER OF RESPONSE OPTIONS 1-3]


N 142 96 238

One lump-sum payment of the full account balance 12.9% 8.0% 12.0%

A series of equal monthly payments guaranteed to last for the rest of your life

62.9% 87.4% 68.2%

[SHOW IF Q9=1: COMBINATION OF WAYS] A lump-sum payment of part of the account balance plus a series of equal monthly payments guaranteed to last for the rest of your life

3.0% 3.4% 2.9%

Other (specify)_________ 3.8% 1.1% 3.0%

Don’t know 16.7% 0.0% 13.4%

Refused 0.8% 0.0% 0.4%



[ASK IF Q10=3 (PLAN TO TAKE/TOOK COMBO - ANNUITY PLUS LUMP SUM)] [SP]Q10-c. How much of your balance from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] [IF S3=2 (RETIREE): did you; [IF S3=1 (WORKER): do you plan to] convert to a series of equal monthly payments guaranteed to last for the rest of your life?

[REVERSE ORDER FOR HALF OF RESPONDENTS]


[IF Q10= 5 (DON’T KNOW) AND S3=1 (NOT RETIRED)] [SP] Q11-a. When do you plan to start thinking about how you would like to receive your payments from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan]?


[IF Q10= 5 (DON’T KNOW) AND S3=1 (NOT RETIRED)]

[GRIDS, SP]

Q11-b. You indicated above that you don’t know how you will receive funds from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance

plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan]? Why is

that?

[ROTATE THE ORDER OF STATEMENTS]




[ASK IF Q10=1 (DB PLAN OFFERS LUMP SUM AND TOOK/PLAN TO TAKE ENTIRE BALANCE AS LUMP SUM)] [GRIDS, SP] Q12-a. Why [IF S3=2 (RETIRED): did you / IF S3=1 (WORKER): do you plan to] choose to receive a lump sum payment from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] rather than choosing to receive a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives]?



[ASK IF (Q9=2: ONLY ONE WAY OR Q9=3: DON’T KNOW OR Q9=REFUSED) OR (Q8=NO, DON’T KNOW, OR REFUSED) E.G., (NOT OFFERED A COMBINATION OF WAYS) OR (DB PLAN DOESN’T OFFER LUMP SUM/DOESN’T KNOW IF DB PLAN OFFERS LUMP SUM/REFUSED TO SAY WHETHER DB PLAN OFFERS LUMP SUM)] [PROMPT ONCE] [SP] Q12-b. If your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] [IF S3=1 (WORKER): allowed you / IF S3=2 (RETIRED): had allowed you] to take part of your balance as a lump-sum payment and the remaining part as monthly payments guaranteed to last for the rest of [IF MARRIED=0: your / IF MARRIED=1: your and your spouse’s lives], how likely would you [IF S3=1 (WORKER): be /IF S3=2 (RETIREE): have been] to choose to receive payments in this combination of ways – part as a lump sum payment and part as monthly payments for life?)


N 399 233 632

Very likely 5.7% 1.3% 4.9%

Somewhat likely 25.7% 13.5% 23.4%

Not too likely 41.3% 32.8% 39.8%

Not at all likely 26.8% 52.4% 31.6%

Refused 0.5% 0.0% 0.3%



[ASK IF Q12_B=4,3: VERY/SOMEWHAT LIKELY) (LIKELY TO TAKE COMBINATION IF OFFERED AND NOT

OFFERED A COMBINATION OF WAYS)]

[SP]

Q12-c. [IF S3=2 (RETIRED): If you had been able / IF S3=1 (WORKER): If you were able ] to choose

to receive part of your balance from your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension

plan; [IF S7=3 AND S6_3=1: cash balance plan] as a lump sum payment and the remaining part as a

series of monthly payments guaranteed to last for life, how much of your balance [IF S3=2 (RETIRED): would you have chosen / IF S3=1 (WORKER): would you choose] to convert to a series of equal

monthly payments guaranteed to last for the rest of your life?




Most 18.3% 17.0%

About half 62.5% 61.2%

Less than half 19.2% 21.6%

Refused 0.0% 0.2%



IF (Q8=2,3, OR REFUSED) OR (Q10=1, 4, 5, REFUSED ) E.G,, (ALL WHOSE MOST IMPORTANT DB PLAN DOES NOT OFFER LUMP SUM) OR (ALL WHO DON’T PLAN TO TAKE ANNUITY OPTION OR COMBO FROM MOST IMPORTANT DB PLAN): [SP]

Q13. Suppose you [if S3=1 (worker): could try out / IF S3=2 (RETIRED): could have tried out] different options for receiving your retirement funds during a trial two-year period.

How likely would you [IF S3=1 (WORKER): be /IF S3=2 (RETIRED): have been] to receive part of your [IF S7=2 AND S6_2>1: most important traditional pension plan; [IF S7=3 AND S6_3>1: most important cash balance plan; [IF S7=2 AND S6_2=1: traditional pension plan; [IF S7=3 AND S6_3=1: cash balance plan] as a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives] if you could [if S3=1 (worker): undo / IF S3=2 (RETIRED): have undone] that decision after two years and get most of your money back?


N 366 202 568

Very likely 14.0% 11.4% 13.6%


Not too likely 33.4% 38.8% 34.4%


Refused 0.6% 0.0% 0.6%



[ASK IF MOST IMPORTANT PLAN IS DC PLAN: S7=1] [PROMPT ONCE] [GRIDS, SP]

Q15. Earlier you indicated that your most important retirement plan/account is an employer-sponsored defined contribution plan. All defined contribution plans offer participants the ability to receive their account balance as a lump sum payment once they approach retirement age. Some defined contribution plans offer participants a number of different options regarding how to receive payments from their account once participants approach retirement age, and participants can choose which option to take. Other defined contribution plans do not offer a choice, and employees can receive payments only one way.

To the best of your knowledge, other than allowing participants to take a lump sum payment, what other payment options [IF S3=1 (WORKER): DOES / IF S3=2 (RETIREE): did] your [IF S6_1>1: most important defined contribution plan; IF S6_1=1: defined contribution plan] offer to participants who are approaching retirement age?

[ROTATE THE ORDER OF STATEMENTS 1 AND 2]

A series of regularly scheduled payments that lasts for a certain period of time but is not guaranteed to last for life. (You choose how to receive the series of payments by choosing the amount of each payment and/or how frequently you wish to receive payments, such as monthly.)


N 792 173 965

Yes 33.7% 45.6% 34.7%

No 14.9% 34.4% 16.5%

Don’t know 51.1% 20.0% 48.5%

Refused 0.2% 0.0% 0.2%

A series of equal monthly payments guaranteed to last for the rest of your life. (This is sometimes called a life annuity.)


N 792 173 965

Yes 25.5% 45.6% 27.1%

No 22.8% 33.8% 23.7%

Don’t know 50.4% 18.5% 47.8%

Refused 1.4% 2.1% 1.4%



Other (specify)____ Workgroup Total

Workers Retirees

N 792 173 965

Yes 3.9% 13.3% 4.8%

No 15.3% 21.0% 15.7%

Don’t know 75.6% 50.8% 73.5%

Refused 5.2% 14.9% 6.0%

[ASK IF SELECTED “YES” FOR AT LEAST ONE RESPONSE IN Q15 (MOST IMPORTANT DC PLAN OFFERS AN OPTION OTHER THAN LUMP SUM)]

[PROMPT ONCE]

[SP]

Q16. [IF S3=1 (WORKER): Are you / IF S3=2 (RETIREE): Were you] allowed to choose to receive

payments from your [IF S6_1>1: most important defined contribution plan; IF S6_1=1: defined

contribution plan] in a combination of ways or only one way? (For example, [IF S3=1 (WORKER): can /

IF S3=2 (RETIREE): could] you take part of your balance as a lump-sum payment and the remaining

part as monthly payments), or [IF S3=1 (WORKER): can / IF S3=2 (RETIREE): could] you choose to

receive payments in only one way?)

[ROTATE RESPONSE OPTIONS 1 AND 2]


N 427 138 565

A combination of ways 41.4% 55.6% 43.3%

Only one way 18.1% 33.1% 20.0%

Don’t know 40.4% 11.3% 36.7%

Refused 0.0% 0.0% 0.0%



IF SELECTED “YES” FOR AT LEAST ONE RESPONSE IN Q15 (MOST IMPORTANT DC PLAN OFFERS AN OPTION

OTHER THAN LUMP SUM): [PROMPT ONCE]

[SP]

Q17. How [IF S3=1 (WORKER): do you plan / IF S3=2 (RETIREE): did you choose] to receive your

payments from your [IF S6_1>1: most important defined contribution plan; IF S6_1=1: defined

contribution plan]?

[ROTATE TOP 3; ROTATE 4-5 BUT ALWAYS KEEP 1-3 BEFORE 4-5]


N 427 138 565

One lump-sum payment of the full account balance 10.9% 29.6% 13.4%

[SHOW IF Q15_B=1]: A series of equal monthly payments guaranteed to last for the rest of your life. (This is sometimes called a life annuity.)

31.3% 25.2% 30.4%

[SHOW IF Q15_A=1]: A series of regularly scheduled payments that lasts for a certain period of time but is not guaranteed to last for life. (You choose how to receive the series of payments by choosing the amount of each payment and/or how frequently you wish to receive payments, such as monthly.)

24.1% 18.2% 23.4%

[SHOW IF Q15_B=1 AND Q16=1: ONLY IF COMBINATION OF WAYS SELECTED ABOVE]: A combination of ways: A lump-sum payment of part of the account balance, plus a series of equal monthly payments guaranteed to last for the rest of your life (a life annuity).

3.5% 9.4% 4.2%

[SHOW IF Q15_A=1 AND Q16=1: ONLY IF COMBINATION OF WAYS SELECTED ABOVE]: A combination of ways: A lump-sum payment of part of the account balance, plus a series of payments that lasts for a certain period of time but is not guaranteed to last for life.

4.5% 3.8% 4.4%

Other (specify) ________ 0.5% 8.8% 1.4%

Don’t know 24.6% .0% 21.4%

Withdraw as needed 0.7% 3.1% 1.1%

Minimum payments 0.0% 0.6% 0.1%

Yearly/annually payments 0.0% 0.6% 0.0%

Refused 0.0% 0.6% 0.1%



[ASK IF Q17 = 4 (DID TAKE / PLAN TO TAKE COMBO – ANNUITY PLUS LUMP SUM)]: [SP]

Q17-c. How much of the total lump-sum payment from your [IF S6_1>1: most important defined

contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] [IF S3=1 (WORKER): do you plan / IF S3=2 (RETIREE): did you choose] to convert to a series of equal monthly

payments guaranteed to last for the rest of your life?



[SP]

[ASK IF Q17= 7 (DON’T KNOW) AND S3=1 (NOT RETIRED)]

Q18. When do you plan to start thinking about how you would like to receive your payments from your

[IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan]?


N 102 0 102

Just before I plan to retire 35.4% 0.0% 35.3%

Within three years of retirement 31.3% 0.0% 31.7%

Within five years of retirement 17.2% 0.0% 17.1%

More than five years before retirement 16.2% 0.0% 16.0%

Refused 0.0% 0.0% 0.0%



[ASK IF Q17= 7 (DON’T KNOW) AND S3=1 (NOT RETIRED)] [GRIDS, SP] Q19. You indicated above that you don’t know how you will receive funds from your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan]? Why is that?


Too early to plan Workgroup Total

Workers Retirees

N 102 0 102

Major reason 48.0% 0.0% 47.5%

Minor reason 26.5% 0.0% 26.8%

Not a reason at all 23.5% 0.0% 23.5%

Refused 2.0% 0.0% 2.2%

Haven’t gotten around to planning Workgroup Total

Workers Retirees

N 102 0 102

Major reason 20.4% 20.2%

Minor reason 38.8% 38.8%

Not a reason at all 34.7% 34.9%

Refused 6.1% 6.1%



Not sure what to do Workgroup Total

Workers Retirees

N 102 0 102




Refused 5.1% 4.6%

Still researching options Workgroup Total

Workers Retirees

N 102 0 102




Refused 3.0% 3.3%

Someone else in family will make that decision Workgroup Total

Workers Retirees

N 102 0 102

Major reason 1.0% 0.0% 1.2%

Minor reason 11.1% 0.0% 11.1%


Refused 5.1% 0.0% 5.2%



[ASK IF MOST IMPORTANT DC PLAN DOES NOT OFFER ANNUITY OPTION PER Q15 AND S3= RETIRED (Q15_B=2,3,REFUSED AND S3=2)] [PROMPT ONCE] [SP] 20-r. Suppose that your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] had offered an option to you that you could have selected once you retired. This option is called a life annuity and would have allowed you to receive payments from your defined contribution plan as a series of equal monthly payments that is guaranteed to last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives]. In return for receiving a series of payments guaranteed to last for life, you would have given up the ability to use funds from your defined contribution plan whenever you wanted.

For example, with a life annuity option, a 65-year-old [IF PPGENDER=1: man / IF PPGENDER=2: woman] with a retirement account balance of $50,000 could convert the $50,000 balance into a series of monthly payments of [IF PPGENDER=1: $335 / IF PPGENDER=2: $314] for the rest of [IF PPGENDER=1: his / IF PPGENDER=2: her] life.

How likely do you think you would have been to select this option for your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan]?




[ASK IF MOST IMPORTANT DC PLAN DOES NOT OFFER ANNUITY OPTION PER Q15 AND S3= NOT RETIRED

(Q15_B=2,3,REFUSED AND S3=1)]

[PROMPT ONCE]

[SP] Q20-w. Suppose that your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] offered an option to you that you could select once you retire. This option is called a life annuity and would allow you to receive payments from your defined contribution plan as a series of equal monthly payments that is guaranteed to last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives]. In return for receiving a series of payments guaranteed to last for life, you would give up the ability to use funds from your defined contribution plan whenever you want.

For example, with the life annuity option, a 65-year-old [IF PPGENDER=1: man/ IF PPGENDER=2: woman] with a retirement account balance of $50,000 could convert this $50,000 balance into a series of monthly payments of [IF PPGENDER=1: $335 / IF PPGENDER=2: $314] for the rest of [IF PPGENDER=1: his / IF PPGENDER=2: her] life.

How likely do you think you would be to consider selecting this option for your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan]?


N 571 0 571

Very likely 8.9% 0.0% 8.8%


Not too likely 37.8% 0.0% 37.7%


Refused 0.0% 0.0% 0.0%



[ASK IF VERY LIKELY/SOMEWHAT LIKELY IN 20-R OR 20-W]

[SP]

Q21-a. [IF S3=2 (RETIRED): If you had been able to select this lifelong monthly payments option, / IF S3=1 (WORKER): If you were able to select this lifelong monthly payments option,] how much of the

total lump-sum payment from your [IF S6_1>1: most important defined contribution retirement savings

plan; IF S6_1=1: defined contribution retirement savings plan] [IF S3=1 (WORKER): would you choose /

IF S3=2 (RETIREE): would you have chosen ] to convert to a series of equal monthly payments

guaranteed to last for the rest of your life?




All 23.2% 22.8%

Most, but not all 40.3% 39.5%



Refused 0.7% 0.7%



[ASK IF NOT TOO LIKELY/NOT AT ALL LIKELY IN 20-R OR 20-W (NOT OFFERED AN ANNUITY OPTION AND NOT LIKELY TO TAKE IF HAD BEEN OFFERED)] [GRIDS, SP] Q23-a. Why [IF S3=2 (RETIRED): would you not have been likely / IF S3=1 (WORKER): are you not likely] to consider selecting an option for your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] that could provide a series of monthly payments that is guaranteed to last for the rest of [IF MARRIED=0: your life /IF MARRIED=1: your and your spouse’s lives]?


I don’t think the lifelong monthly payments would be a good value for the money Workgroup Total

Workers Retirees





Refused 2.0% 1.9%

I may not live long enough to make the lifelong monthly payments worthwhile. Workgroup Total

Workers Retirees





Refused 2.6% 2.3%



I need cash up front. Workgroup Total

Workers Retirees





Refused 2.9% 2.9%

I fear losing control over the money. Workgroup Total

Workers Retirees





Refused 2.6% 2.6%

I want to be able to leave some money to my family/friends after I die. Workgroup Total

Workers Retirees





Refused 3.9% 3.8%



I want to keep the money around in case there is an emergency Workgroup Total

Workers Retirees





Refused 2.3% 2.3%

I think I could get a better return on my investment managing the money myself. Workgroup Total

Workers Retirees





Refused 1.6% 1.8%

I don’t have enough information about the lifelong monthly payments to be comfortable with them






Refused 1.9% 2.0%



I don’t trust the financial institution or company that might manage these lifelong monthly payments.






Refused 2.6% 2.6%

I fear that the financial institution or company that might manage these lifelong monthly payments could fail or go out of business.






Refused 2.9% 2.9%



[ASK IF Q15_B=1 “YES” AND Q17 DOESN’T EQUAL 2 OR 4 (OFFERED AN ANNUITY OPTION IN MOST IMPORTANT DC PLAN AND DID NOT TAKE/DO NOT PLAN TO TAKE IT)] [GRIDS, SP] Q23-b. Why [IF S3=2 (RETIRED): did you choose not to / IF S3=1 (WORKER): are you not likely to choose to] receive your payments from your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] as a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life /IF MARRIED=1: your and your spouse’s lives]?



Workers Retirees

N Insufficient base Insufficient

base 120

Major reason 23.0%

Minor reason 33.1%

Not a reason at all 41.1%

Refused 2.8%

I may not live long enough to make the lifelong monthly payments worthwhile. Workgroup

Workers Retirees Total

Insufficient base

Insufficient base 120

Major reason 32.5%

Minor reason 36.3%


Refused 1.8%



I need cash up front. Workgroup



base 120

Major reason 11.5%

Minor reason 36.5%


Refused 1.5%

I fear losing control over the money. Workgroup



base 120

Major reason 27.0%

Minor reason 27.5%


Refused 2.5%

I want to be able to leave some money to my family/friends after I die. Workgroup



base 120

Major reason 21.6%

Minor reason 27.1%


Refused 2.0%



I want to keep the money around in case there is an emergency Workgroup



base 120

Major reason 24.5%

Minor reason 39.1%


Refused 2.2%

I think I could get a better return on my investment managing the money myself. Workgroup



base 120

Major reason 30.6%

Minor reason 34.9%


Refused 2.2%

I don’t have enough information about the lifelong monthly payments to be comfortable with them.

Workgroup Workers Retirees

Total


base 120

Major reason 22.1%

Minor reason 40.9%


Refused 1.3%



I don’t trust the financial institution or company that might manage the lifelong monthly payments.


Total


base 120

Major reason 15.4%

Minor reason 34.4%


Refused 2.0%

I fear that the financial institution or company that might manage the lifelong monthly payments could fail or go out of business.


Total


base 120

Major reason 22.5%

Minor reason 31.6%


Refused 1.8%



[ASK IF ( Q16= 2,3, REF: ONLY ONE WAY OR DON’T KNOW OR REFUSED) OR (DID NOT SELECT “YES” FOR ANY RESPONSES IN Q15) E.G., NOT OFFERED A COMBINATION OF WAYS) OR (DC PLAN OFFERS NO OPTIONS OTHER THAN LUMP SUM/DON’T KNOW IF DC PLAN OFFERS OPTIONS OTHER THAN LUMP SUM/REFUSED TO SAY WHETHER DC PLAN OFFERS OPTIONS OTHER THAN LUMP SUM)] [SP]

Q24. If your [IF S6_1>1: most important defined contribution plan; IF S6_1=1: defined contribution plan] [IF S3=1 (WORKER): allowed you / IF S3=2 (RETIRED): had allowed you] to take part of your balance as a lump-sum payment and the remaining part as monthly payments guaranteed to last for the rest of [IF MARRIED=0: your / IF MARRIED=1: your and your spouse’s lives], how likely would you [IF S3=1 (WORKER): be /IF S3=2 (RETIREE): have been] to choose to receive payments in this combination of ways – part as a lump sum payment and part as monthly payments for life?


N 597 97 694

Very likely 13.8% 8.6% 13.5%


Not too likely 32.6% 35.2% 32.7%


Refused 0.5% 1.0% 0.5%



[ASK IF Q24=VERY/SOMEWHAT LIKELY (LIKELY TO TAKE COMBINATION IF OFFERED AND NOT OFFERED A COMBINATION OF WAYS)] [SP] Q24-b. If your [IF S6_1>1: most important defined contribution plan; IF S6_1=1: defined contribution plan] [IF S3=1 (WORKER): allowed you / IF S3=2 (RETIRED): had allowed you] to take part of your balance as a lump-sum payment and the remaining part as monthly payments guaranteed to last for the rest of [IF MARRIED=0: your / IF MARRIED=1: your and your spouse’s lives], how much of your balance [IF S3=2 (RETIREE): would you have chosen / IF S3=1 (WORKER): would you choose] to convert to a series of equal monthly payments guaranteed to last for the rest of your life?




Most 21.9% 22.5%



Refused 0.8% 0.7%



ALL WHOSE MOST IMPORTANT DC PLAN DOES NOT OFFER AN ANNUITY OPTION OR ALL WHO DON’T PLAN TO

TAKE ANNUITY OPTION EVEN IF PLAN OFFERS IT (“YES” NOT SELECTED FOR Q15_B) OR ((“YES” SELECTED

FOR Q15_B AND (Q17 DOESN’T EQUAL 2 OR 4))): [SP]

Q25. Suppose you [if S3=1 (worker): could try out / if S3=2 (retired): could have tried out] different options for receiving your retirement funds during a trial two-year period.

How likely would you [IF S3=1 (WORKER): be /IF S3=2 (RETIRED): have been] to convert part of the balance of your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] into a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0 : your life / IF MARRIED=1: your and your spouse’s lives] if you could [if S3=1 (worker): undo / IF S3=2 (RETIRED): have undone] that decision after two years and get most of your money back?


N 649 138 787

Very likely 17.3% 14.2% 17.1%


Not too likely 23.9% 25.5% 24.0%


Refused 0.7% 0.0% 0.7%



ALL WHOSE MOST IMPORTANT DC PLAN DOES NOT OFFER AN ANNUITY OPTION OR ALL WHO DON’T PLAN TO

TAKE ANNUITY OPTION EVEN IF PLAN OFFERS IT (“YES” NOT SELECTED FOR Q15_B) OR ((“YES” SELECTED

FOR Q15_B AND (Q17 DOESN’T EQUAL 2 OR 4))): [SP]

Q26. Suppose you could [if S3=1 (worker): contribute / IF S3=2 (RETIRED): have contributed] some

of your retirement funds into a life annuity, a little at a time.

How likely would you [IF S3=1 (WORKER): be / IF S3=2 (RETIRED): have been] to dedicate some of the amount that you or your employer [IF S3=1 (WORKER): contribute / IF S3=2 (RETIRED): contributed] to your [IF S6_1>1: most important defined contribution retirement savings plan; IF S6_1=1: defined contribution retirement savings plan] towards purchasing a product that would give you a series of monthly payments guaranteed to continue for the rest of your life once you retire?


N 649 138 787

Very likely 7.6% 7.1% 7.5%


Not too likely 31.8% 20.7% 31.0%


Refused 0.4% 0.0% 0.4%

[ASK IF MOST IMPORTANT PLAN IS IRA: S7=4] [SP] Q26a. Earlier you indicated that your most important retirement plan/account is an IRA. Did you open your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] in order to rollover the balance of a retirement plan that you used to have with a previous employer?


N 502 214 716

Yes 38.5% 43.7% 39.1%

No 61.5% 56.3% 60.9%

Refused 0.0% 0.0% 0.0%



[ASK IF MOST IMPORTANT PLAN IS IRA: S7=4] [PROMPT ONCE] [GRIDS, SP] Q27-a. To the best of your knowledge, what are the different options that you [IF S3=1 (WORKER): have / IF S3=2 (RETIRED): had] regarding how to receive payments from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] once you [IF S3=1 (WORKER): approach / IF S3=2 (RETIRED): approached] retirement age?

[ROTATE STATEMENTS A-C]

Use the funds from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] to purchase a product that provides a series of equal monthly payments guaranteed to last for the rest of your life. (This is sometimes called a life annuity.)


N 502 214 716

Yes 24.9% 22.8% 24.7%

No 28.8% 52.8% 31.9%

Don’t know 45.9% 23.4% 43.0%

Refused 0.4% 1.0% 0.4%

Receive a series of regularly scheduled payments directly from your IRA. (You choose the amount of each payment and/or how frequently you wish to receive payments, such as monthly. The payments are not guaranteed to last for life.)


N 502 214 716

Yes 47.6% 54.3% 48.4%

No 16.3% 27.9% 17.9%

Don’t know 35.9% 16.8% 33.4%

Refused 0.2% 1.0% 0.3%



Keep the funds in the IRA and withdraw amounts periodically, only as needed Workgroup Total

Workers Retirees

N 502 214 716

Yes 64.1% 66.5% 64.5%

No 10.3% 26.9% 12.5%

Don’t know 25.2% 6.6% 22.8%

Refused 0.4% 0.0% 0.3%

Other (specify)_____ Workgroup Total

Workers Retirees

N 502 214 716

Yes 2.4% 8.6% 3.3%

No 20.6% 38.6% 22.8%

Don’t know 70.6% 42.6% 67.0%

Refused 6.5% 10.2% 6.9%



[ASK IF MOST IMPORTANT PLAN IS IRA: S7=4 AND (Q27_A_A=1 OR Q27_A_B=1 OR Q27_A_C=1 OR

Q27_A_D=1)] [PROMPT ONCE]

[GRIDS, SP] Q27-b. [IF S3=1 (WORKER): Once you retire, how do you plan to withdraw / IF S3=2 (RETIRED): How have you withdrawn] funds from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA]?

[ ROTATE STATEMENT 1-3]

[SHOW IF Q27_A_A=1]: [IF S3=1 (WORKER): Use / IF S3=2 (RETIRED): Used] the funds from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] to purchase a product that provides a series of equal monthly payments guaranteed to last for the rest of your life. (This is sometimes called a life annuity.)



Yes 20.3% 20.2%

No 43.1% 47.1%

Don’t know 36.6% 32.7%

Refused 0.0% 0.0%

[SHOW IF Q27_A_B=1]: [IF S3=1 (WORKER): Receive / IF S3=2 (RETIRED): Received] a series of regularly scheduled payments directly from your IRA. (You [IF S3=1 (WORKER): choose / IF S3=2 (RETIRED): chose] the amount of each payment and/or how frequently you receive payments, such as monthly. The payments are not guaranteed to last for life.)


N 243 125 368

Yes 41.9% 67.6% 45.6%

No 29.7% 27.8% 29.4%

Don’t know 28.4% 4.6% 25.0%

Refused 0.0% 0.0% 0.0%



[SHOW IF Q27_A_C=1]: [IF S3=1 (WORKER): Keep/ IF S3=2 (RETIRED): Kept] the funds in the IRA and [IF S3=1 (WORKER): withdraw/ IF S3=2 (RETIRED): withdrew] amounts periodically, only as needed


N 323 147 470

Yes 75.2% 75.4% 75.2%

No 8.8% 23.1% 10.6%

Don’t know 16.0% 1.5% 14.2%

Refused 0.0% 0.0% 0.0%

[SHOW IF Q27_A_D=1]: INSERT THE ANSWER FROM Q27_A_D TEXTBOX IF IT WAS PROVIDED. IF IT WAS LEFT BLANK, INSERT “Other option”


ASK IF Q27-B_1 = 1 (YES) AND SOMETHING ELSE IN Q27B IS YES (Q27-B_2=1 (YES) OR Q27-B_3=1 (YES) OR OR Q27-B_4=1 (YES)) (DID TAKE / PLAN TO TAKE COMBO – ANNUITY PLUS SOMETHING ELSE): [SP]

Q27-d. How much of the total balance from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] [IF

S3=1 (WORKER): do you plan to / IF S3=2 (RETIREE): did you] use to purchase a product that provides

a series of equal monthly payments guaranteed to last for the rest of your life?



[ASK IF IF ALL Q27_B ITEMS=3 (DON’T KNOW) AND S3= 1 (NOT RETIRED)]

[SP]

Q28. When do you plan to start thinking about how you would like to withdraw funds from your [IF

S6_4>1: most important IRA / IF S6_4=1: IRA]?




[ASK IF IF ALL Q27_B ITEMS=3 (DON’T KNOW) AND S3= 1 (NOT RETIRED)] [GRIDS, SP] Q29. You indicated above that you haven’t thought about or don’t know how you will receive funds from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA]? Why is that?



ASK IF MOST IMPORTANT PLAN IS IRA AND WAS NOT AWARE OF ANNUITY OPTION PER Q27A AND S3=RETIRED (“YES” NOT SELECTED FOR Q27A_A AND S3=2: RETIRED): [PROMPT ONCE]

[SP] Q30-r. Suppose that you could have used the balance in your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] to purchase a financial product that provides a series of equal monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives]. (This is sometimes called a “life annuity.”) In return for receiving a series of payments guaranteed to last for life, you would have given up the ability to use funds from your IRA whenever you wanted.

For example, with a life annuity, a 65-year-old [IF PPGENDER=1: man / IF PPGENDER=2: woman] with a retirement account balance of $50,000 could convert this $50,000 balance into a series of monthly payments of [IF PPGENDER=1: $335 / IF PPGENDER=2: $314] for the rest of [IF PPGENDER=1: his / IF PPGENDER=2: her] life.

How likely do you think you would have been to convert your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] into a product like this that provides a series of monthly payments for life?


N 0 161 161

Very likely 0.0% 4.6% 4.7%


Not too likely 0.0% 48.0% 47.9%


Refused 0.0% 0.0% 0.0%



[ASK IF MOST IMPORTANT PLAN IS IRA AND WAS NOT AWARE OF ANNUITY OPTION PER Q27A AND S3=NOT RETIRED (“YES” NOT SELECTED FOR Q27A RESPONSE OPTION 1 AND S3=NOT RETIRED):]

[PROMPT ONCE]

[sp]

Q30-w. Suppose that you could use the balance in your [IF S6_4>1: most important IRA / IF S6_4=1:

IRA] to purchase a financial product that provides a series of equal monthly payments guaranteed to

last for the rest of [IF MARRIED=0: your life / IF MARRIED=1: your and your spouse’s lives]. (This is

sometimes called a “life annuity.”) In return for receiving a series of payments guaranteed to last for

life, you would give up the ability to use funds from your IRA whenever you want.

For example, with a life annuity, a 65-year-old [IF PPGENDER=1: man/ IF PPGENDER=2: woman]

with a retirement account balance of $50,000 could convert this $50,000 balance into a series of

monthly payments of [IF PPGENDER=1: $335 / IF PPGENDER=2: $314] for the rest of [IF

PPGENDER=1: his / IF PPGENDER=2: her] life.

How likely do you think you would be to consider converting your [IF S6_4>1: most important IRA / IF

S6_4=1: IRA] into a product like this that provides a series of monthly payments for life?


N 380 0 380

Very likely 5.4% 0.0% 5.4%


Not too likely 45.4% 0.0% 45.3%


Refused 0.0% 0.0% 0.0%




IF VERY LIKELY/SOMEWHAT LIKELY IN Q30-R OR 30-W: [SP] Q31. [IF S3=2 (RETIRED): If you had been aware that you could / IF S3=1 (WORKER):If you learned that you could] convert all or part of your IRA into a product that provides lifelong monthly payments, how much of the total balance of your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] [IF S3=1 (WORKER): would you choose / IF S3=2 (RETIREE): would you have chosen ] to convert to a series of equal monthly payments guaranteed to last for the rest of your life? [REVERSE ORDER FOR HALF OF RESPONDENTS]


Total


All 17.1% 17.8%

Most, but not all 32.9% 31.3%



Refused 0.0% 0.5% IF NOT TOO LIKELY/NOT AT ALL LIKELY IN Q30-R OR Q30-W (NOT AWARE OF ANNUITY OPTION AND NOT LIKELY TO ANNUITIZE IF HAD BEEN AWARE): [GRIDS, SP] Q32-a. Why [IF S3=2 (RETIRED): would you not have been likely / IF S3=1 (WORKER): are you not likely] to consider converting part or all of your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] into a product that could provide a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life /IF MARRIED=1: your and your spouse’s lives]? [ROTATE THE ORDER OF STATEMENTS] I don’t think the lifelong monthly payments would be a good value for the money


Total

N 229 137 366

Major reason 44.8% 46.5% 45.2%

Minor reason 40.1% 28.7% 38.2%


Refused 0.0% 3.1% 0.6%



Workers Retirees

N 229 137 366

Major reason 44.2% 41.1% 43.8%

Minor reason 32.2% 20.2% 30.2%


Refused 0.9% 0.8% 0.7%

I need cash up front. Workgroup Total

Workers Retirees

N 229 137 366

Major reason 18.5% 16.3% 18.3%

Minor reason 29.7% 29.5% 29.7%


Refused 1.7% 7.8% 2.8%

I fear losing control over the money. Workgroup Total

Workers Retirees

N 229 137 366

Major reason 46.8% 43.4% 46.2%

Minor reason 27.9% 24.8% 27.6%


Refused 0.9% 1.6% 0.9%



I want to be able to leave some money to my family/friends after I die. Workgroup Total

Workers Retirees

N 229 137 366

Major reason 24.6% 24.6% 24.5%

Minor reason 36.6% 36.9% 36.7%


Refused 0.9% 0.8% 1.0%

I want to keep the money around in case there is an emergency Workgroup Total

Workers Retirees

N 229 137 366

Major reason 52.6% 46.2% 51.6%

Minor reason 33.6% 33.1% 33.3%


Refused 1.3% 0.8% 1.3%

I think I could get a better return on my investment managing the money myself. Workgroup Total

Workers Retirees

N 229 137 366

Major reason 43.8% 42.6% 43.8%

Minor reason 31.3% 23.3% 29.9%


Refused 0.9% 0.8% 0.8%



I don’t have enough information about the lifelong monthly payments to be comfortable with them.


N 229 137 366

Major reason 43.8% 29.5% 41.4%

Minor reason 32.6% 26.4% 31.6%


Refused 0.4% 1.6% 0.6%

I don’t trust the financial institution or company that might manage the lifelong monthly payments.


N 229 137 366

Major reason 40.8% 27.9% 38.6%

Minor reason 30.9% 35.7% 31.8%


Refused 3.1% 0.5%

I fear that the financial institution or company that might manage the lifelong monthly payments could fail or go out of business.


N 229 137 366

Major reason 45.9% 34.9% 44.1%

Minor reason 30.0% 31.0% 30.1%


Refused 0.4% 2.3% 0.7%



[ASK IF “YES” TO Q27A_A AND Q27B_1 DOESN’T EQUAL 1. (AWARE OF ANNUITY OPTION PER Q27-A AND DID NOT TAKE/DO NOT PLAN TO TAKE IT):] [GRIDS, SP] Q32-b. Why [IF S3=2 (RETIRED): did you choose not to / IF S3=1 (WORKER): are you not likely to choose to] receive your payments from your [IF S6_4>1: most important IRA / IF S6_4=1: IRA] as a series of monthly payments guaranteed to last for the rest of [IF MARRIED=0: your life /IF MARRIED=1: your and your spouse’s lives]?



Workers Retirees





Refused 1.0% 0.9%


Workers Retirees

N 9

AARP Annuities Survey May 2010 To: AARP : Mike Dennis, …...AARP Annuities Survey May 2010 -...

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Transcript of AARP Annuities Survey May 2010 To: AARP : Mike Dennis, …...AARP Annuities Survey May 2010 -...