- Uncovers Key Driver Differentiating Pre-Retirees into Four Segments;
Venturers, Adapters, Anchoreds and Pursuers -
ST. PAUL, Minn., March 13 /PRNewswire/ -- The majority (65%) of working
Americans aged 50+ are becoming more comfortable with change and
uncertainty as they grow older according to a national study released today
by SecurePath(SM) by Transamerica, a service of Transamerica Retirement
Management, Inc. In fact, half (50%) say they are at their best during
times of change and many say that change is exciting (50%). The study
further finds that attitudes towards change in general can serve as a way
of differentiating pre-retirees and identifies four key segments based on
their "change profiles," Venturers, Adapters, Anchoreds and Pursuers.
The new retirement study was commissioned by SecurePath by Transamerica
and was conducted by GfK Roper Public Affairs & Media. The study explores
the views of working Americans in their 50s about change, uncertainty, risk
and retirement expectations as they prepare for and enter the next stage of
their life.
"The study certainly contradicts many long-held beliefs that as we grow
older, we become more reluctant to change," said Will Prest, chief
marketing officer of Transamerica Retirement Management, Inc. "The findings
are encouraging particularly in an uncertain economic environment as they
indicate that many pre-retirees are confident in their ability to cope even
in challenging times."
Not Daunted by Retirement Uncertainty, But Not Expecting Too Much
Nearly three-quarters (73%) of pre-retirees say they will handle the
change and uncertainty associated with growing older well and two-thirds
(66%) are confident that even with the uncertainty associated with
retirement, everything will work out.
The study suggests they are not only comfortable with the uncertainty;
they also may be more realistic than commonly thought about their next life
stage. When asked their retirement goals, most pointed to financial needs
(having a steady monthly income --90%, having good health insurance -- 88%,
and having enough money to pay for medical bills if they become sick --
85%) as opposed to traveling frequently (50%), affording to buy a
house/apartment (34%) or leaving something for their children when they are
gone (39%). In fact, 68% plan to be working in some capacity as they age.
Gap Remains Between Personal Optimism and Financial Realism
Overall, pre-retirees had a positive and excited view of their future,
as 63% look forward to retirement and 56% feel this transition will be
easier than other life changing experiences. While they are psychologically
prepared for retirement, the same is not the case from a financial
perspective. Contrary to widespread warning in the mainstream media about
the future of Social Security, 61% cite it as their main source of expected
income during retirement.
Additionally, while a majority reports being satisfied with their
lifestyle (66%) and job (60%), only 33% report being satisfied with their
retirement savings.
Risk More Attractive In Theory Than Practice ... Prefer To Avoid It If
They Can
When asked about their personal philosophy when it comes to finances
and money, more than half (58%) can relate to the notion of "Nothing
ventured, nothing gained," and 48% agree with "No risk, no reward."
At the same time, when asked where they actually prefer to keep most of
their savings as they age, 54% opt for guaranteed, safe investments even if
they don't earn high returns. However, when the risk trade-off necessary to
achieve higher returns is made clear slightly fewer choose the safer route.
When given the choice to select between an investment with higher risk but
a potentially higher return, or a low risk/lower return option, 36% prefer
the low-risk path and 28% choose the high-risk option with the rest falling
somewhere in between. Separately, a third (34%) acknowledge they need some
riskier investments in order to achieve their retirement goals.
"Pre-retirees may be worried about risk in their overall retirement
plan but also acknowledge its role," Prest said. "Understanding their
change profiles will help them to bridge the chasm between fear and need as
they determine the appropriate level of risk for their assets, based on
their current financial reality."
"Change Profiles" Reveal New Way to Understand Pre-Retiree Attitudes
Respondents were segmented into four groups based on their overall
"change profile" and following is a snapshot of each segment highlighting
how they differ with respect to their preference for change or consistency,
sense of control and confidence in themselves and their future.
Venturers: Relish Change, In Control and Looking Forward
Venturers are exhilarated by change. Nearly all agree they are at their
best during times of change and feel they are in control of their lives.
This sense of control transfers into a high level of confidence about
investing and retirement. While Venturers' overall attitudes about their
pending retirement are positive, they need to be careful not to be
overconfident about their level of preparedness.
-- 93% find change exciting and 62% seek out change over consistency
-- During times of change or uncertainty, 95% feel they are at their best
instead of their worst
-- 99% believe how their lives turn out is pretty much within their
control and depends mostly on what they do or don't do, and 85% believe
this about their future lives in retirement
-- 53% describe themselves as experienced investors
-- 69% are confident they will have money to get by in retirement, and 66%
are confident they will have enough money to live the lives they want
when they retire
Adapters: "Take It Or Leave It" Attitude About Change, But Ready to
Handle Whatever Comes
Adapters tend to shy away from change finding it stressful but also
exciting. However, this does not affect their confidence in themselves and
their retirement. Many feel they will be in control of their retirement,
are confident they will handle the transition well, and believe everything
will work out. However, their tendency toward consistency coupled with
their confidence makes them less likely to proactively plan for the future
or seek out opportunities to maximize retirement savings.
-- They find change stressful (53%) yet exciting (54%) and 46% look for
consistency in their lives rather than seek change
-- 99% believe how their lives turn out is pretty much within their
control and depends mostly on what they do or don't do, and 77% believe
the same about their forthcoming retirement
-- 83% feel they will handle the transition to retirement well and 78% are
confident that everything will work out when they transition to
retirement
-- 63% are confident they will have money to get by in retirement, and 56%
are confident that they will have the financial resources to live the
lives they want during retirement
Anchored: Striving for Consistency and Worried About Security
The Anchored look for consistency in their lives rather than seek
change. Clinging to consistency may be why they feel in control, and to a
certain degree, this approach works for them. However, they often shy away
from monetary risks or chances and feel they are at their worst when
undergoing periods of change. This apprehension towards change negatively
affects their confidence in their retirement savings and their investing
and may lead them to be less prepared for retirement.
-- 83% look for consistency in their lives rather than seek change
-- 62% believe that how their lives turn out is pretty much within their
control and depends mostly on what they do or don't do
-- Six in 10 report feeling at their worst during times of change (62%)
-- 64% say they are not really the kind of person that takes monetary
risks or chances and 58% describe themselves as having little
experience in investing
-- 45% are not confident they will have money to get by in retirement, and
49% are not confident that they will have the financial resources to
live the lives they want during retirement
Pursuers: Crave Change, But Not Confident In Their Future
The Pursuers prefer change and find it exciting; however, they don't
always feel they handle it well. They also have mixed feelings about
control; sometimes feeling they control their lives and other times feeling
life controls them. Their mixed feelings about change and experiences with
change create a lack of confidence in their abilities to handle investing
or retirement. In fact, as a group they are the most likely to say they
will continue working instead of retiring. Their desire for change coupled
with their lack of confidence leaves them open to retirement planning ideas
but also with a need for reassurance in order to execute.
-- 42% seek change in their lives rather than consistency and half (52%)
find change exciting
-- 33% believe how their lives turn out is pretty much within their
control and depends mostly on what they do or don't do, while 25% feel
that it is beyond their control and depends mostly on outside forces
which they have no control over (42% are undecided).
-- 55% describe themselves as investors with little experience
-- Many (46%) are not planning to retire
-- 43% are not confident they will have enough money to get by in
retirement and 46% are not confident they will be able to live the
lives the way they would like in retirement
"The goal of the change profiles is to help consumers understand and
overcome their natural inclinations in order to maximize their retirement
planning," explains Prest. "Each segment faces its own unique hurdles and
is poised to react differently as the economy softens. Pursuers, for
example, need help finding and sticking to the right retirement planning
approach. Venturers, who seem to be in an ideal position, need to be
cautious about overconfidence in their level of preparedness. While being
financially ready is the obvious end goal, it can't happen without
understanding the psychological barriers to getting there."
About the C.U.R.E. Retirement Survey
The findings presented are the results of an online study conducted in
the fall of 2007 by GfK Roper Public Affairs & Media among a sample of
2,015 working Americans ages 50 or older. Data was weighted to the online
population by age, sex and region. The segmentation was created with a two-
step clustering technique. For more information about this study, visit
http://www.securepathbytransamerica.com.
About GfK Roper Public Affairs & Media
GfK Roper Public Affairs & Media is a division of GfK Custom Research
North America. The division specializes in customized public opinion
polling, media and communications research, and corporate reputation
measurement -- in the US and globally. In addition to delivering a broad
range of customized research studies, GfK Roper Public Affairs & Media
draws from GfK's syndicated consumer tracking services, GfK Roper
Reports(R) US and GfK Roper Reports(R) Worldwide, which monitor consumer
values, beliefs, attitudes and behaviors in the United States and more than
25 other countries.
About Transamerica Retirement Management, Inc. and SecurePath(SM) By
Transamerica
Headquartered in St. Paul, Minn., Transamerica Retirement Management,
Inc. is a marketing affiliate of Transamerica Life Insurance Company,
Transamerica Financial Life Insurance Company and Transamerica Occidental
Life Insurance Company. Securities and Investment Advisory Services are
offered through InterSecurities, Inc., member FINRA, SIPC and Registered
Investment Advisor. InterSecurities, Inc. is not a licensed insurance
entity and insurance products are offered only through its licensed
insurance agency, InterSecurities Insurance Agency, Inc., a licensed
insurance agency in most states, or agents associated with InterSecurities,
Inc. All companies named herein are AEGON companies. SecurePath by
Transamerica is a protected service mark of Transamerica Life Insurance
Company. For additional information, visit
http://www.securepathbytransamerica.com.
SOURCE SecurePath By Transamerica
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Related links:
http://www.securepathbytransamerica.com
CONTACT:
Mark Foster, VP Communications of
Transamerica Retirement Management, Inc., +1-651-286-4707,
mark.foster@transamerica.com; or Jess Ayers of Padilla Speer
Beardsley, +1-212-752-8338, jayers@psbpr.com, for Transamerica
Retirement Management, Inc.
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