Allstate Financial Survey Reveals Baby Boomers to Spend Their Golden Years In
                                   The Red

    NORTHBROOK, Ill., Jan. 10 /PRNewswire/ -- Baby Boomers who envision a
retirement of leisure may want to check their balance statements.  According
to the Allstate Financial "Retirement Reality Check" survey, more than half of
surveyed Baby Boomers will spend their golden years paying off debt.
    According to the survey, 58 percent of Baby Boomers will spend their
retirement paying off some combination of the following:

    -- 37 percent will be paying off car loans
    -- 27 percent will owe on a home mortgage
    -- 25 percent will carry credit card debt

    The survey revealed that debt won't curtail spending, as 56 percent of
surveyed Baby Boomers plan to purchase a big-ticket luxury item, such as a
vacation home, boat and/or RV, in retirement:

    -- 27 percent plan to purchase a new car
    -- 18 percent plan to purchase a computer
    -- 13 percent plan to buy a vacation home
    -- 7 percent plan to buy a recreation vehicle
    -- 6 percent plan to purchase a boat

    "While there are a lot of big-ticket items that Baby Boomers want, what
they need most is to develop a solid retirement plan.  Though retirement may
seem far away to some, now is the time for middle-income Americans to start
saving," said Tom Wilson, president of Allstate Financial.  "The benefit of
starting now is that interest in your investments compounds year after year so
your money works harder for you, without you having to work harder to save."

    Work it
    The Allstate Financial "Retirement Reality Check" survey revealed that the
majority of respondents (68 percent) said they would be earning and saving
money for their retirement during their retirement.  Three out of four Baby
Boomers (73 percent) do not think they will ever completely retire.
    "Research shows that people with a plan save five times more than people
who don't,(1)" said Wilson.  "Middle-income Americans can work with financial
advisors to develop a plan that will assist them in controlling current
consumption while saving for retirement."

    Debt Snapshot
    It's not unusual for debt to keep people from saving.  According to The
Federal Reserve, the national balance on credit card and auto loans rose to a
record $1.58 trillion in spring 2001.  Currently, debt payment accounts for
14.3% of take home pay, the highest level since 1986.
    The Allstate Financial "Retirement Reality Check" survey was created by
Allstate Financial in conjunction with Harris Interactive.  Using a random
digit dialing methodology, Harris polled 1,004 people born between 1946 and
1961, with household incomes ranging from $35,000 to $100,000.  The margin of
error is plus/minus 3.1 percent.  For the data related to September 11, Harris
surveyed 294 respondents who met the same criteria.  The margin of error for
the second sample is plus/minus 5.7%.
    Allstate Financial Group is a business unit of The Allstate Corporation
(NYSE: ALL), representing the affiliates that provide life insurance,
retirement, investment and health and disability insurance products. Widely
known through the "You're In Good Hands With Allstate(R)" slogan, Allstate
Financial can help its customers achieve a secure financial future with a
broad array of retirement solutions.  Allstate Financial is also a premier
provider of variable annuities and long-term care insurance. In addition,
through workplace marketing, Allstate Financial offers life, health and
disability insurance through employee payroll deductions. Customers can access
Allstate Financial products and services through approximately 60,000
financial professionals, including Allstate agents, independent agents, and
banks and securities firms.

    (1) Employee Benefit Research Institute, 1999

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