Perceptions, aspirations, and retirement · about aging, retirement is still an intimidating topic...
Transcript of Perceptions, aspirations, and retirement · about aging, retirement is still an intimidating topic...
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This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries.
September 2018
Perceptions, aspirations, and retirement
1
Redefining Aging
10/5/2018
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Table of contents
1. Methodology……………………………….. 3
2. Perceptions of Aging….….……….……… 4
3. Aging Aspirations…….………….……….. 10
4. Retirement………………………………….. 18
5. Appendix....…………………………..…….. 24
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About TD Ameritrade Holding Corporation
TD Ameritrade provides investing services and education to more than 11 million client accounts totaling more than $1.2 trillion in assets, and custodial services to more than 6,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of more than 780,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of nearly 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
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This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries. 3
Methodology This survey was conducted online within the United States by The Harris Poll on behalf of TD Ameritrade from July 17th – July 21st, 2018, among 2,002 U.S. adults aged 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. The Harris Poll is separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies.
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This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries. 10/5/2018 4
Perceptions of aging are shifting…
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Expectations for longevity reached new heights
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 5
PERCEPTIONS OF AGING
As people age, they expect to live longer. On average, Americans expect to live to age 84.
0%
20%
40%
60%
80%
100%
30 40 50 60 70 80 90 100 110 120
% Who Expect To Live To Age…
Millennial GenX Boomer Greatest
65.8% Growth rate of centenarians from 1980 to 2010 (US Census Bureau)
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The timeline for getting “old” may be lengthening
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002\ 1 = https://well.blogs.nytimes.com/2009/06/30/how-old-is-old-age/
6
PERCEPTIONS OF AGING
The average age Americans classify someone as “old” is 74 years, up from 68 in 20091
55
At What Age Do You Consider A Person “Old”?
85 60 65 70 75 80 67 72 79 82
MILLENNIALS GEN X BOOMER GREATEST
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The majority also link getting older with esteemed attributes like “wisdom” and “experience”
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 7
PERCEPTIONS OF AGING
62%
43%
41%
26%
20%
18%
17%
Wisdom
Experience
Forgetfulness
Ill health
Confidence
Freedom
Becoming a burden
Becoming out of touch
% Associate with Aging
Among millennials, these numbers rise to 69% and 65%, respectively.
Positive Association
Negative Association
say they sometimes face prejudice because of their age – and this is consistent across generations (36%, Top 2 box)
1 IN 3 AMERICANS
65%
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Boomers lead on top traits of trustworthiness and independence, though they dip slightly on confidence, falling on par with millennials
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 8
PERCEPTIONS OF AGING
As I Get Older I Feel
59%
46%
39%
24% 21%
55%
43%
34% 31%
28%
69%
51%
34%
25%
38%
70%
46%
30% 32%
44%
Trustworthy Independent Educated Confident Traditional
Millennial GenX Boomer Greatest
Demographic Breakdown (Top 5 Values)
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Millennials in particular believe they are getting better with age
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 9
PERCEPTIONS OF AGING
30% of millennials say they are “excited to grow older,” compared to 23% overall
As I Get Older I Feel…
46%
52% 54%
42% 45% 46%
41% 40%
35% 36%
48%
39% 36%
33%
26%
52%
34%
45%
40%
22%
More comfortable in my own skin More in control of my life More focused on substantiverelationships than surface-level
ones
More in control of my finances That the best is yet to come
Millennial GenX Boomer Greatest
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This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries. 10/5/2018 10
Aspirations for aging are on the rise
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The “Golden Years of Opportunity”
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AGING ASPIRATIONS
An opportunity to reach new goals (Top 2 box)
81% Time to pursue my passions that did not fit into my life before (Top 2 box)
76% An opportunity to focus on myself, after years of focusing on others (Top 2 box)
69%
Survey respondents say aging provides…
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
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Outside of time with friends and family, core priorities include: focusing on health/wellness, seeking out new experiences, and increasing leisure
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 12
AGING ASPIRATIONS
62%
51%
51%
29%
20%
19%
17%
10%
7%
Spend time with friends and family
Focus on my health and wellness
Seek out new experiences
Increase leisure time
Create a legacy for my children and grandchildren
Give back to the community
Maintain a healthy sex life
Work a part-time job
Start a business
Priorities When Aging
Travel abroad (57%)
Take up a new hobby (52%)
Track health using a wearable (28%)
Join new social circles (24%)
Live abroad (12%)
Participate in extreme sports (3%)
Plan to Do As They Age
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Retirees and non-retirees have different plans on how to spend their time
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); Not retired n = 1504; Retired n = 399 13
AGING ASPIRATIONS
46%
66%
Not Retired Retired
FOCUS ON MY HEALTH AND WELLNESS
54% 42%
Not Retired Retired
SEEK OUT NEW EXPERIENCES
33% 18%
Not Retired Retired
INCREASE LEISURE TIME
63% 58%
Not Retired Retired
SPEND TIME WITH FRIENDS AND FAMILY
19% 16%
Not Retired Retired
GIVE BACK TO THE COMMUNITY
Those who are retired are more likely to focus on health and wellness
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The focus on health and wellness extends beyond just the physical, to focus more on emotional and mental health
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 14
AGING ASPIRATIONS – HEALTH & WELLNESS
32%
27%
21%
18%
Health Priority As You Age
Living a balanced lifestyle
Being happy and cheerful
Being alert and bright-minded
Being physically fit
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In fact, declining health is the top fear Americans face about getting older
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002 15
AGING ASPIRATIONS – HEALTH & WELLNESS
58% 58% 46% 43%
LOSING MENTAL FUNCTION LOSING PHYSICAL FUNCTION LOSING LOVED ONES HEALTH CARE COSTS
35% 26% 20% 15%
UNABLE TO MEET FINANCIAL NEEDS DYING BEING ISOLATED LOSING LOOKS
What Worries People About Aging
Americans worry more about the health care costs and finances than death
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Yet despite increasing optimism about aging, retirement is still
an intimidating topic
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Almost a quarter of all respondents are retired – and they love it
17
RETIREMENT & FINANCIAL IMPLICATIONS
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
87%
46%
8%
1%
24%
Greatest
Boomers
Gen X
Millennials
Average
% of Generation That’s Retired
Survey respondents say retirement is – or will be – the most liberating phase of their life (Top 2 box)
72% Retired
61% Pre-Retired
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But there’s a disconnect between expected and desired timelines
18
RETIREMENT & FINANCIAL IMPLICATIONS
While 50% of respondents would like to retire by 60, just 33% expect to do so
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
50%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
30 35 40 45 50 55 60 65 70 75 80
Desired vs. Expected Retirement Age
Desired retirement age
Expected retirement age
Age
Cum
ulat
ive
Perc
ent
Expect the retirement age to increase in the next 10 years (Top 2 box)
82%
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This gap is largely caused by a need to save more
19
RETIREMENT & FINANCIAL IMPLICATIONS
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
Reasons why respondents will retire later than they’d like
1 2 3
4 5 6
Need to save more (74%)
To qualify for social security (37%)
To qualify for Medicaid (23%)
Afraid of getting bored (20%)
To take care of their kids (16%)
To take care of their parents (7%)
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Most aren’t confident that they’re preparing for retirement correctly
20
RETIREMENT & FINANCIAL IMPLICATIONS
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
Do not believe social security will cover their spending (Bottom 2 box)
72% Have/had no idea how much to save for life beyond 65 (Top 2 box)
60% Do not believe they’ll have more than enough to cover their needs (Bottom 2 box)
51%
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Most aren’t confident that they’re preparing for retirement correctly
21
RETIREMENT & FINANCIAL IMPLICATIONS
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
68% 53% 30% 18%
REDUCING EXPENSES TO SAVE MORE
CONTRIBUTING MORE TO RETIREMENT
INCREASING INCOME OUTSIDE OF JOB
SHIFTING TO HIGHER RETURN/RISK ASSETS
Including 44% of millennials!
How do you prepare for a longer life span?
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APPENDIX
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Demographics
23
APPENDIX
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
Generation Age Millennials 18 – 34
Gen X 35 – 52 Boomers 53 – 72 Greatest 73+
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As expected, the proportion of respondents retired increases with age
24
APPENDIX
Source: The Harris Poll on behalf of TD Ameritrade (July 2018); n = 2,002
0% 0% 1% 0% 7% 6%
13% 9%
25%
51%
76% 84%
95% 100% 100%
18-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90
% Retired by Age Group
Gen X
Boomers
Greatest
Millennials