Overview of Retirement in The Private Sector (Dallas Salisbury)

The State of the U.S.
Retirement “System”
The EBRI/Salisbury 2009 Update.
Work Forever, Retire Sick, or Retire Well ? It
Has Always Been In Most Individuals Hands !
Dallas L. Salisbury
President & CEO
Employee Benefit Research Institute
salisbury@ebri.org
Chairman,
American Savings Education Council
choosetosave.org
© Employee Benefit Research Institute 2009

2

The State of the U.S. Retirement “System”
1. All Retirement Income Sources

2. Workforce Tenure
3. Plan Sponsorship of DB and DC
4. Who Gets Pension Income
5. Freeze DB Plans
6. Suspend 401(k) Matching Contributions
7. Automation of (k) Plans
8. Diversification of (k) Plans
9. Account balance loss and recovery analysis
10. Retirement Confidence

Social Security Is Not Enough
4
High Turnover Workforce: Male Prime-Age (25-64)
Workers Median Tenure Trends, By Age, 1951-2006
18 Ages 25-34
Ages 35-44
15.3
16 14.6 Ages 45-54
14.7 14.5 14.5
14 13.0
13.4 Ages 55-64
12 11.2
Years of Tenure
12.8 10.5
11.8 10.2 10.2
11.4 11.5 9.8 9.5
9.3 11.0 11.2
10
10.1
8.8 9.4 9.5 9.1 9.6
8
8.1
7.6 7.6 7.3 7.0
6.9
6 6.7 6.5
6.0 6.1
5.5 5.3 5.0 5.2
4 5.1
4.5
3.5 3.2 3.2 3.1 3.1 3.0
2 2.8 2.7 2.7 2.8 2.7 2.8 3.0 2.9
0
1951 1963 1966 1973 1978 1983 1987 1991 1996 1998 2000 2002 2004 2006
Year
Source: Data (for 1951, 1963, 1966, 1973, and 1978) from the Monthly Labor Review (September 1952, October 1963, January
1967, December 1974, and December 1979); from press releases (for 1983, 1987, 1991, 1996, 1998, 2000, and 2002) from the U.S. 5
Department of Labor, Bureau of Labor Statistics; and from Employee Benefit Research Institute estimates of the January 2004 and
2006 Current Population Survey.
Low Full Career Workforce: Percentage of Private Wage and
Salary Workers Ages 45-64 Who Had 25 or More Years of
Tenure, by Age -Private Sector, 2004-2006
26%
24%
22%
20%
18%
16.1%
16%
15.1%
15.4% 15.2%
14%
12%
10%
10.0%
9.5%
8%
2004 2006
Ages 45 to 54-Private Sector Ages 55 to 59-Private Sector Ages 60 to 64-Private Sector
Source: U.S. Department of Labor, Bureau of Labor Statistics, "Employee Tenure," and 6
Employee Benefit Research Institute estimates from the January 2004 and 2006 Current
Population Surveys.
30 years of DC growth and 20 years of DB decline
Plan Type 1975 1986 2006

DB Number of Plans 103,000 173,000 48,000
DC Number of Plans 208,000 545,000 631,000
DB Total Participants 33 million 40 million 42 million

DC Total Participants 12 million 37 million 80 million
DB Active Participants 27 million 29 million 20 million
DC Active Participants 11 million 35 million 66 million
Private W/S Workers 68 million 90 million 118 million

DB Active Percent 40 % 32% 17%
DC Active Percent 16 % 38% 56%

Percentage of Americans Age 65 or Older With Pension and Annuity
Income, by Income Quintile, 1974-2007
(CPS Data)
70%
60%
50%
40%
30%
20%
10%
0%
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Total Lowest Quintile 2nd Quintile 3rd Quintile 4th Quintile Highest Quintile Private Public
Source: EBRI Databook, EBRI estimates from the Current Population Survey March Supplements.

Percentage of Americans Age 65 or Older Who Have Pension Income, by
Various Demographic Characteristics, 1998, 2003, and 2006
(SIPP Data)
70%
60%
50%
40%
30%
20%
10%
0%
All 65–69 70–74 75–79 80 or older Male Female Less than high Postgraduate
school diploma degree
1998 2003 2006
Source: Employee Benefit Research Institute estimates of the 1996, 2001, and 2004 Survey of Income and Program Participation (SIPP) Topical Module 7.

Median Pension Income for Those Receiving It, by Various Demographic
Characteristics, 1998, 2003, and 2006
(SIPP Data and 2006$’s)
$25,000
$20,000
$15,000
$10,000
$5,000
$0
All 65–69 70–74 75–79 80 or older Male Fem ale Less than high Postgraduate
school diplom a degree
1998 2003 2006
Source: Employee Benefit Research Institute estimates of the 1996, 2001, and 2004 Survey of Income and Program Participation (SIPP) Topical Module 7.

Percentage of Americans Age 65 or Older Who Have Worked for Pay
With Pension Income, by Characteristics of the Employee’s Former
Employer or the Employee’s Status Prior to Retirement, 2003 and 2006
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
All Less than 10 100 or m ore Private Public Less than 5 20 or m ore $10,000–$19,999 $50,000 or m ore
Em ployees em ployees years of Tenure years of tenure in earnings in earings
2003 2006
Source: Employee Benefit Research Institute estimates of the 2001 and 2004 Survey of Income and Program Participation Topical Module 7.

Median Pension Income of Those Age 65 or Older Who Have Worked for
Pay With Pension Income, by Characteristics of the Employee’s Former
Employer or the Employee’s Status Prior to Retirement, 2003 and 2006
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
All Less than 10 100 or m ore Private Public Less than 5 20 or m ore $10,000–$19,999 $50,000 or
Em ployees em ployees years of years of tenure in earnings m ore in
Tenure earings
2003 2006
Source: Employee Benefit Research Institute estimates of the 2001 and 2004 Survey of Income and Program Participation Topical Module 7.
All dollar figures in 2006 dollars.

Expected reduction in nominal replacement rates if all private defined
benefit plans were to freeze accruals for NEW employees immediately, by
gender and age
2.50%
Reduction in nominal
replacement rates
2.00%
1.50%
male
1.00% female
0.50%
0.00%
20 25 30 35 40 45 50 55 60
Age cohort (min age specified)
Source: Author’s simulations based on April 2009 version of EBRI/ERF

Retirement Security Projection Model™
Expected CONDITIONAL reduction in nominal replacement rates if all
private defined benefit plans were to freeze accruals for NEW employees
immediately, by age
9%
8%
Reduction in nominal
replacement rates
7%
6%
5% median
4% mean
3%
2%
1%
0%
20 25 30 35 40 45 50 55 60

Percentage of those with "lost" DB wealth due to a pension freeze who
are expected to have a larger total nominal replacement rate from the DC
enhanced contributions (if any)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
20 25 30 35 40 45 50 55 60

Median percentage of compensation required as an ENHANCED
employer contribution for future years covered by a defined contribution
plan in lieu of a frozen defined benefit plan for financial indemnification.
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
20 25 30 35 40 45 50 55 60

Employer Suspension of 401(k) Matches 2008-2009
154 Companies
3.9 million workers
88 percent of workers employers have DB plans — open or
frozen — that must be funded
12 percent of workers at firms with no open or frozen DB plans
What can we learn from the last time employer’s suspended matches?
Source: EBRI analysis of publicly reported employer actions 17

Effect of 2003 Suspension of Employer Matches on
Employee Contributions Over Time
140%
120%
average 100%
change
versus 2002 80%
relative to
full 60%
consistent
sample 40%
20%
0%
2003 2004 2005 2006
Source: EBRI tabulations from EBRI/ICI Consistent Sample, 1999-2006.

Notes: A total of 15,476 employees who had contributed in 2002 and whose employer matches were frozen in 18
2003 are compared to 1.9 million employees who contributed in 2002 and did not have frozen matches in 2003.
Effect of 2003 Suspension of Employer Matches on
Employee Participation Over Time:
All Resumption Periods Combined
300%
percentage 250%
of 2002
contributors 200%
not
contributing
in current
150%
year relative
to full 100%
consistent
sample 50%
0%
2003 2004 2005 2006
Source: Author's tabulations from EBRI/ICI Consistent Sample, 1999-2006.

Notes: A total of 15,476 employees who had contributed in 2002 and whose employer matches were frozen in 19
2003 are compared to 1.9 million employees who contributed in 2002 and did not have frozen matches in 2003.
Automatic enrollment with and without automatic
increase vs voluntary enrollment: 50th percentiles
Results for those currently 25-29
10
8
Post-PPA 401(k) AE wo escalation
6
accumulations as Voluntary
a multiple of final 4 AE w escalation
earnings
2
0
Low 2 3 High
Salary quartile
Source: VanDerhei and Copeland, “The Impact of PPA on Retirement Savings for 401(k)
Participants”, EBRI Issue Brief, June 2008

Sensitivity analysis on automatic increase
assumptions: 50th percentiles
rcs optouts, auto increase
Results for those currently 25-29 to 6 percent, remember =0
14 rcs optouts, auto increase

to 6 percent, remember =1
12
10 rcs optouts, auto increase
Post-PPA 401(k) to 10 percent, remember =
8
accumulations as a 0
multiple of final 6
earnings 0 percent optouts, auto
4 increase to 6 percent,
2 remember = 0
0 percent optouts, auto
0
increase to 10 percent,
1 2 3 4 remember = 1
Salary quartile (1=lowest, 4 = highest)
Source: VanDerhei and Copeland, “The Impact of PPA on Retirement Savings for 401(k) Participants”, EBRI
Issue Brief, June 2008. Note: RCS optouts represent the distribution of maximum deferrals from survey
participants described in VanDerhei, The Expected Impact of Automatic Escalation of 401(k) Contributions on
Retirement Income, EBRI Notes, September 2007
Replacement rate obtained from personal retirement account of worker
who contributes 4% of his annual salary over a 40-year career
Replacement rate
100% 100%
89% (1999)
80% 80%
100% stocks
60% 60%
40% 40%
27% (2008)
20% 20%
0% 0%
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Last year in worker’s career 22
Source: Gary Burtless, Brookings Institution © Employee Benefit Research Institute 2009
Replacement rate obtained from personal retirement account of
worker who contributes 4% of his annual salary over a 40-year career
Replacement rate
100% 100%
80% 80%
100% stocks
60% 60%
50% stocks / 40% 40%

50% bonds
20% 20%
100% bonds
0% 0%
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Last year in worker’s career 23
Source: Gary Burtless, Brookings Institution © Employee Benefit Research Institute 2009
Dec. 31 Asset Allocation Distribution for 401(k) Participant
Account
Figure 5. Dec. 31stBalances
Asset Allocation to “Equity,”
Distribution by Age:
of 401(k) Participant Account2006,
Balances to2007,
“Equity,” by 2008
Age: 2006, 2007 and 2008
“Equity” is defined as equity funds + company stock + the relevant portion of balanced and target date funds
60%
50%
40%
30%
0.7-0.8
20%
0.8-0.9
>0.9
10%
0%
up to 35 up to 35 up to 35 36-45 36-45 36-45 46-55 46-55 46-55 56-65 56-65 56-65
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
Sources:
2006: Tabulations from year-end 2006 data from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. The analysis is based on active participants w ith account
balances at the end of 2006.
2007: Tabulations from year-end 2007 data from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. The analysis is based on active participants w ith account
balances at the end of 2007.
2008: Author's projections based on year-end 2007 data from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Methodology is explained in the paper.
Source: VanDerhei, “The Impact of the Recent Financial Crisis on 401(k) Account Balances” EBRI
Issue Brief, February 2009

Median “Excess” Returns from Target Date Funds,
by
Figure Participant Age
6. Median "excess" returns andDateInvestment
from Target funds by Participant AgeStyle: 2000–2006
and Investment Style : 2000-2006
The "excess" is calculated by comparing the projected account balances generated by target date funds to actual account balances
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
21-35 36-45 46-55 56-65 21-35 36-45 46-55 56-65 21-35 36-45 46-55 56-65
average average average average most most most most most most most most
Notes: aggressive aggressive aggressive aggressive conservative conservative conservative conservative
1. All asset allocations for target date funds are based on 2007 data.
2. Due to inconsistencies in plan loan data provision, there is a slight negative bias to the computed value of the "excess" returns. This w ill be quantified at a later stage.
Source: Author's calculations based on consistent sample data from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.
Source: VanDerhei, “Frozen Pensions and Falling Stocks: What Will Happen to
Retirees' Incomes?” Urban Institute, February 3, 2009
Equity Allocation of 10 Target-Date Fund Families, by Year
of Target Date Fund, End of Year 2007
95%
85%
75%
65%
55%
A B C D E
45%
35% F G H I J
25%
15%
Retirement 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Income
Source: Asset allocations of the target date funds as reported by Target Data Analytics from Morningstar Principia.
Retirement Income would also represent Target Income, Target Today, Target Now, and other similar names used by Target Date Funds.
26

Percentage of Target-Date Fund Investors Having All of Their
Assets in Target Date Funds, by Plan Size and Automatic
Enrollment Status, 2007
100%
96.8% 97.1% 97.3% 98.1%

90% 96.0% 96.4%
96.0% 92.5% 92.0% 93.1%
80% All
Autoenrollees 79.4%
70% Nonautoenrollees
60%
54.9% 52.1%
50.0%
47.3% 46.3% 47.3% 47.2% 46.6%
50%
50.8% 44.0%
48.4% 39.9%
47.4%
40% 44.8%
44.8% 44.1% 43.8% 42.1% 34.0%
40.5%
36.0%
30%
29.9%
20%
1-10 11-25 26 - 50 51 - 100 101 - 250 251 - 500 501 - 1,001 - 2,501 - 5,001 - > 10,000
1,000 2,500 5,000 10,000
Source: EBRI tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.
27

Percentage of Target-Date Fund Investors Having All of Their
Assets in Target Date Funds, by Account Balance and Automatic
Enrollment Status, 2007
90%
90.3%
80%
79.8% 81.1%
67.3% 77.7% 77.9% 79.2% 79.1% 79.0%
70%
60%
62.7% All
50% Autoenrollees
41.5%
Nonautoenrollees
40%
32.7%
39.4%
30% 26.3%
31.6% 22.1%
25.7% 19.1% 15.6%
20% 11.2%
21.7%
18.8% 15.4% 11.1%
10%
<$5,000 $5,000- $10,000- $20,000- $40,000- $60,000- $100,000- $200,000 or
$9,999 $19,999 $39,999 $59,999 $99,999 $199,999 more
Source: EBRI tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.
28

Long Term Account Movement
Change In Average Account Balances Among a Consistent Sample of

401(k) Participants, by Age and Tenure, Jan. 1, 2000, through Nov. 26,
2008
600%
500%
Tenure
(in years)
400%
6–10
300% 11–20
21–30
200%
100%
0%
up to 35 36–45 46–55 56–65
Age
Sources: 1999 and 2006 Account Balances: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data
Collection Project; 2007 and 2008 Account Balances: EBRI estimates. The analysis is based on a consistent sample30
of 2.2 million participants with account balances at the end of each year from 1999 through 2006.
Change In Average Account Balances From Jan. 1, 2008 (S&P
1418) – Jan. 20, 2009 (S&P 805), Among 401(k) Participants
with Account Balances as of Dec. 31, 2007
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
< $10,000 $50,000–$100,000 > $200,000
Account Balance
Sources: 2007 Account Balances: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data
Collection Project; 2008 and 2009 Account Balances: EBRI estimates. The analysis is based on all participants
31
with account balances at the end of 2007 and contribution information for that year.
Tenure Matters a Great Deal in Account Growth and Decline
Short Term Account Movement
Change In Average Account Balances From Jan. 1, 2008 – Jan. 20, 2009,
Among 401(k) Participants with Account Balances as of Dec. 31, 2007
30%
20%
10% 1-4
5-9
0% 10-19
20-29
-10% 30 or more
-20%
-30%
25-34 35-44 45-54 55-64
Age
Sources: 2007 Account Balances: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection
Project; 2008 and 2009 Account Balances: EBRI estimates. The analysis is based on all participants with account 32
balances at the end of 2007 and contribution information for that year.
Change In Average Account Balances From January 1,
2008 – May 5, 2009 Among 401(k) Participants with
Account Balances as of Dec. 31, 2007
50%
40%
Job Tenure
30% (in years)
20%
1-4
10% 5-9
10-19
0% 20-29
-10%
-20%
25-34 35-44 45-54 55-64
Age
Sources: 2007 Account Balances: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection
Project; 2008 and 2009 Account Balances: EBRI estimates. The analysis is based on all participants with account
balances at the end of 2007 and contribution information for that year.
Time Needed to Recover from 2008 401(k) Losses, Using Various
Figure 4. Time Needed to Recover From 2008 401(k) Losses, Using Various Equity Return Assumptions
Equity Return Assumptions
72.3 years
20
18
16
14
12
Tenure
Y e ars
1–4
10
5–9
8
10–19
6
20–29
4
-10% -10% -5% -5% 0% 0% 5% 5% 10% 10%
median 70th median 70th median 70th median 70th median 70th
percentile percentile percentile percentile percentile
Equit y r et ur n a nd pe r ce nt il e dist r ibut ion
Source: Author's calculations based on year-end 2007 data from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.
NB: Losses are defined as the difference betw een year-end 2007 and 2008 account balances. This is NOT limited to investment loss.
34

2009 Retirement Confidence Survey:
Summary of Key Findings
Presented to American Savings

Education Council, April 15, 2009
www.choosetosave.org
Employee Benefit Research Institute Mathew Greenwald & Associates, Inc.

1100 13th Street NW, Suite 878 4201 Connecticut Ave. NW, Suite 620
Washington, DC 20005 Washington, DC 20008
Phone: (202) 659-0670 Fax: (202) 775-6312 Phone: (202) 686-0300 Fax: (202) 686-2512
Retirement Confidence Has Dropped to its Lowest
Recorded Level
Overall, how confident are you that you (and your spouse) will have enough money to live
comfortably throughout your retirement years? (2009 Workers n=1,001)
Very Somewhat Not too Not at all Don't know/Refused
6% 10% 13% 14% 10%

16% 17% 16% 21%
19% 18% 19%
17% 18% 17%
17% 21%
22%
55% 47% 44% 44% 43%

45% 40%
43%
41%
25% 21% 24% 25% 24% 27%

18% 18% 13%
1993 2000 2003 2004 2005 2006 2007 2008 2009

The Decline in Retirement Confidence is Steeper Among
Older Workers
comfortably throughout your retirement years?
Percentage Very or Somewhat Confident
2007 2008 2009

75%
68% 69% 70% 68%
63%
58% 57% 58% 58%
49%
45%
Ages 25-34 Ages 35-44 Ages 45-54 Ages 55+

Workers with $25K to $150K Exhibit the Largest Decline
in Retirement Confidence
2007 2008 2009

95%93%
91%
87% 85%86%
80% 82%85% 80%
77% 75%
73%
63%
60%
52%
40%
35%
<$25,000 $25,000- $100,000- $150,000- $250,000- $500,000 or

$99,999 $149,999 $249,999 $499,999 more
Those Who Have Done a Savings Calculation Lost More
Retirement Confidence Than Those Who Did Not
2007 2008 2009

85%
74%
61% 59%
50% 49%
Have done calculation Have not done calculation

Confidence in Preparing Financially Has Declined Only
Slightly
How confident are you that you (and your spouse) are doing a good job of preparing financially
for your retirement? (2009 Workers n=1,001)
Very Somewhat Not Too Not At All Don't Know / Refused
12% 10% 10% 14% 12% 16% 12% 13% 12% 14%
17% 13% 14%
18% 15% 14% 12% 15% 16% 16%
49% 47% 50%

46% 45% 46% 45% 48%
47% 49%
26% 28% 24% 26% 26% 25% 26% 23%

21% 20%
1993 1996 2000 2003 2004 2005 2006 2007 2008 2009
Feelings of Financial Mastery and Belief in Equities as
Long Term Investments Have Taken a Hit
Please tell me how well each of the following statements describes you? (2009 Workers n=1,001)
Very well Well
1998 38% 34% 72%
I think anyone can have a 2000 35% 35% 70%

comfortable retirement, if
they just plan and save. 2002 32% 39% 71%
2009 24% 39% 63%
0%
1998 N/A
Over the long run, I 28% 40% 68%
2000
believe stocks in
general will be a very
2002 22% 38% 61%
good investment.
2009 17% 31% 48%
Interest in Financial Planning Has Declined as the Need
Has Increased
Please tell me how well each of the following statements describes you? (2009 Workers n=1,001)
Very well Well
19980%N/A
2000 23% 39% 62%

I enjoy financial
planning. 2002 19% 38% 57%
2009 17% 31% 48%
1998 3%8% 12%

I think preparing for 2000 7% 8% 15%
retirement takes too much
time and effort. 2002 4%10% 13%
2009 9% 12% 21%

Almost Three in Ten Think They Have Altered Their
Target Retirement Date
In the past 12 months, has the age at which you expect to retire changed? (2009 Workers n=1,001)
If yes: Do you now expect to retire…? (2009 Workers who changed retirement age n=304)
2003 2008 2009 2003 2008 2009
89%
79%
75%
32%
28%
18% 25%
18%
9%
Percent Yes Later, at an older age Sooner, at a younger

than before age than before
The Poor Economy Heads the List of Reasons Why
Workers Say They Are Postponing Retirement
Why has your expected retirement age changed? (Among workers changing their retirement age,
n=304) (Top mentions, multiple responses accepted)
Poor economy 36%

Need to make up for losses in stock market 28%
Want to make sure have enough money 24%
Job loss, change in employment 10%
Cost of living higher than expected 9%
Uncertainty about stock market 7%
Need to pay bills/expenses/new purchases 6%
The Proportion of Workers Expecting to Retire After Age 65
is Growing More Slowly Recently Than Perceptions Indicate
Realistically, at what age do you expect to retire? (2009 Workers n=1,001)
1994 2003 2008 2009
31%
30% 31%
28%
25%
24% 24%
23%
22%
21% 21%
17%
16%
11% 11%
9% 10%
6% 6%
1%
Before 60 60-64 65 66 or older Never retire

Almost Half of Retirees Left the Workforce Before They
Planned
Did you retire earlier than you planned, later than you planned, or about when you planned?
(2009 Retirees n=256)
Earlier than Planned
51%
48% 47%
45% 45%
39% 39% 40% 38%
37% 37%
1996 1998 2001 2002 2003 2004 2005 2006 2007 2008 2009
People Retire Early for a Variety of Reasons, Many
Beyond Their Control
Did you retire earlier than you planned because…? (2009 Retirees retiring earlier than planned
n=121) (Percentage saying yes)
You had a health problem or 46%

disability 42%
You could afford to retire earlier 12%

than planned 35%
There were changes at your company, 14%

such as downsizing or closure 34%
NA
You wanted to do something else
23%
10%
You had another work-related reason
22%
You had to care for a spouse or 14%

another family member 18%
1999
Changes in the skills NA
required for your job 2009
(2007: obsolete)
13%
More Workers Plan to Work for Pay in Retirement than
Retirees Report
Do you think you will do any work for pay after you retire? (2009 Workers n=1,001) Have you
worked for pay since you retired? (2009 Retirees n=256) (Percentage saying yes)
Workers Retirees
70% 72%
68% 66% 67% 66%
63% 63%
56%
37%
32% 34%
28% 26% 27% 25%
22% 22%
1998 2000 2003 2004 2005 2006 2007 2008 2009

Fewer Retirees Say They Worked Because They
Enjoyed It
Is the following a major reason, a minor reason, or not a reason why you worked for pay after
you retired? (2009 Retirees who worked for pay n=100)
Major Reason Minor Reason
2008 62% 31% 93%

Enjoying working
2009 52% 27% 79%
Wanting to stay active and 2008 74% 17% 91%

involved 2009 52% 24% 76%
Wanting money to make 2008 28% 27% 55%

ends meet 2009 30% 31% 60%
Wanting money to buy 2008 25% 25% 50%

extras 2009 26% 26% 52%
More Retirees Saw a Decrease in the Value of Their
Savings/Investments
Is the following a major reason, a minor reason, or not a reason why you worked for pay after
you retired? (2009 Retirees who worked for pay n=100)
Major Reason Minor Reason
2008 37% 18% 54%

A job opportunity
2009 35% 17% 52%
A decrease in the value of 2008 25% 12% 37%

your savings or investments 2009 27% 16% 43%
2008 11% 14% 24%

Trying a different career
2009 9% 21% 31%
Keeping health insurance or 2008 20% 11% 31%

other benefits 2009 14% 10% 24%
Less Than Half of Workers Report Doing a Retirement
Needs Calculation
Have you (or your spouse) tried to figure out how much money you will need to have saved by
the time you retire so that you can live comfortably in retirement? (2009 Workers n=1,001)
Respondent Respondent and/or Spouse
53%
48% 47%
43% 42% 43% 44%
42% 42%
51%
45%
37%
32%
1993 1999 2000 2003 2004 2005 2006 2007 2008 2009
The Plurality Guess at How Much They Will Need
How did you (or your spouse) determine this amount? Did you…? (Workers who gave amount
needed for retirement n=871)
Guess 44%
Do your own estimate 26%
Ask a financial advisor 18%
Read or hear that is how much

9%
needed
Use an online calculator 7%
Fill out a worksheet or form 5%

Many Think They Need Little in Savings to Live
Comfortably in Retirement
How much did you (or your spouse) calculate you would need to accumulate IN TOTAL by the
time you retire? If haven’t calculated: How much do you think you (and your spouse) will need to
accumulate IN TOTAL by the time you retire so that you can live comfortably in retirement?
All Workers (n=1,001) $75,000 or more (n=391)
30%
28%
23%
19%
17% 15%
15% 14%
11%
8% 8% 8%
Under $250,000 $250,000- $500,000- $1,000,000- $1,500,000 or Don't

$499,999 $999,999 $1,499,999 more know/Don't
remember
1100 13th Street NW
Suite 878
Washington, D.C. 2005
202-659-0670
54

Overview of Retirement in The Private Sector (Dallas Salisbury)

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Overview of Retirement in The Private Sector (Dallas Salisbury)

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The State of the U.S.

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

1. All Retirement Income Sources

© Employee Benefit Research Institute 2009

Ages 45 to 54-Private Sector Ages 55 to 59-Private Sector Ages 60 to 64-Private Sector

Plan Type 1975 1986 2006

DB Total Participants 33 million 40 million 42 million

Private W/S Workers 68 million 90 million 118 million

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

1998 2003 2006

© Employee Benefit Research Institute 2009

1998 2003 2006

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

Source: Author’s simulations based on April 2009 version of EBRI/ERF

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

Source: EBRI analysis of publicly reported employer actions 17

© Employee Benefit Research Institute 2009

Source: EBRI tabulations from EBRI/ICI Consistent Sample, 1999-2006.

Source: Author's tabulations from EBRI/ICI Consistent Sample, 1999-2006.

Results for those currently 25-29

© Employee Benefit Research Institute 2009

14 rcs optouts, auto increase

Last year in worker’s career 22

50% stocks / 40% 40%

Last year in worker’s career 23

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

96.8% 97.1% 97.3% 98.1%

© Employee Benefit Research Institute 2009

© Employee Benefit Research Institute 2009

Change In Average Account Balances Among a Consistent Sample of

-10% -10% -5% -5% 0% 0% 5% 5% 10% 10%

© Employee Benefit Research Institute 2009

Presented to American Savings

Employee Benefit Research Institute Mathew Greenwald & Associates, Inc.

Very Somewhat Not too Not at all Don't know/Refused

6% 10% 13% 14% 10%

55% 47% 44% 44% 43%

25% 21% 24% 25% 24% 27%

1993 2000 2003 2004 2005 2006 2007 2008 2009

Percentage Very or Somewhat Confident

2007 2008 2009

Ages 25-34 Ages 35-44 Ages 45-54 Ages 55+

Percentage Very or Somewhat Confident

2007 2008 2009

<$25,000 $25,000- $100,000- $150,000- $250,000- $500,000 or

Percentage Very or Somewhat Confident

2007 2008 2009

Have done calculation Have not done calculation

Very Somewhat Not Too Not At All Don't Know / Refused

49% 47% 50%

26% 28% 24% 26% 26% 25% 26% 23%

Very well Well

1998 38% 34% 72%

I think anyone can have a 2000 35% 35% 70%

2009 24% 39% 63%