WASHINGTON, Dec. 15, 2011 /PRNewswire/ -- The "Great
Recession" and economic uncertainty of recent years have darkened
expectations about retirement for millions of Americans near the
end of their working lives, leaving many convinced they will need
to remain in the workforce much longer than originally anticipated,
according to poll results announced today by The Allstate
Corporation (NYSE: ALL) and National Journal.
The 11th quarterly Allstate-National Journal Heartland
Monitor Poll explored Americans' financial situations and attitudes
toward retirement. The poll shows the recession has cast a shadow
on the plans of "near-retirees"– Baby Boomer Americans age 50 or
older who have not yet retired. On average, near-retirees expect to
retire six years later than the age at which current retirees did.
More than two-thirds of Baby Boomers (68%) expect to work in some
form after retirement – about half say, out of necessity – while
only 11% of current retirees report that they work.
"The impact of the recession on the middle class is larger than
past recessions. Not only is long-term unemployment at record
levels, but Baby Boomers now say they will have to retire six years
later than previous retirees," said Thomas J. Wilson, Allstate chairman,
president and chief executive officer. "Sandwiched between the
happily retired and the optimistic young, these near-retirees feel
the pain of their declining home values and retirement savings and
expect to work until 66 years of age. This profound decline in Baby
Boomers' retirement expectations has significant public policy and
private market implications."
According to the poll, near-retirees have different expectations
about the sources of their retirement income and their financial
security in retirement than current retirees. Both groups express a
similar reliance on Social Security: 68% of retirees say it is a
major source of income; 62% of near-retirees expect it to be.
However, more than half (52%) of current retirees cite a pension as
a major income source, while only 37% of near-retirees expect the
same. Meanwhile, 34% of near-retirees expect part-time work to be a
major income source, while only 8% of current retirees report
part-time work due to economic necessity. While 79% of current
retirees say they're confident about their retirement security,
including 33% who are "very confident," only 67% of near-retirees
say the same, and only 19% say they are "very confident."
"For those approaching retirement, the sense of security
expressed by many of today's retired seniors looks like a ship that
is sailing beyond reach," said Ronald
Brownstein, editorial director of National Journal
Group. "This survey captures a palpably greater degree of anxiety
among near-retirees – families that have been exposed more directly
to the battering of the job, housing, and stock markets. Many of
them have been paddling so hard to stay above the waves of the
Great Recession that they have difficulty imagining a time when
they can confidently lay down their oars."
Key findings from the 11th Allstate-National Journal
Heartland Monitor Poll (PDF) include:
1) Many Americans feel the pain as
the recession continues to be a game-changer – and delays Baby
Boomer retirements – while current retirees and younger Americans
firmly believe in the retirement promises of the American
Dream.
- Near-retirees (Baby Boomers aged 50+ who are not yet retired)
expect to retire, on average, at the age of 66. Current retirees
retired at 60 on average – which is about when younger Americans
(the Millennial generation, ages 18-29) expect to retire.
- Only 27% of near-retirees expect their retirement to be more
secure than their parents' retirement, and 47% expect it to be less
secure. 42% of current retirees say their retirement is more secure
than their parents' was, and only 17% say it is less secure.
- Only 25% of near-retirees expect their retirement to be more
comfortable than their parents' retirement, and 39% expect it to be
less comfortable. 47% of current retirees say their retirement is
more comfortable than their parents' was, and only 19% say it is
less comfortable.
- 68% of near-retirees say it is very or somewhat likely that
they will continue to work in some form. Only 11% of current
retirees say they still work.
2) With the exception of Social
Security, near-retirees have different expectations than current
retirees about their sources of income and financial security in
retirement.
- Social Security is a major income source for 68% of current
retirees, and a similar 62% of Baby Boomer near-retirees say they
expect it to be a major income source.
- A monthly pension is a major income source for 52% of current
retirees, but only 37% of near-retirees expect the same.
- 401(k)s are a major income source for 16% of current retirees
and are expected to be a major source by 39% of near-retirees.
- IRAs are a major income source for 18% of current retirees and
are expected to be a major source by 27% of near-retirees.
- Income from part-time work is a major income source for just 8%
of current retirees and is expected to be a major source for 34% of
near-retirees.
- 79% of current retirees said they were "very" or "somewhat"
confident they have enough money to provide a secure retirement,
while only 67% of near-retirees expressed the same level of
confidence.
3) Near-retirees overwhelmingly
support the traditional Medicare system over a voucher system,
including a strong majority of Republicans.
- 62% support the current Medicare system of direct payments to
doctors. Only 17% support conversion of Medicare to a program that
provides seniors with a fixed sum of money to purchase their own
insurance. 58% of Republican near-retirees support continuation of
the current system.
4) Americans believe that a secure
retirement has more to do with their own hard work, savings, and
investment than it does with an unpredictable stock market.
- 63% of Americans believe that a secure retirement depends more
on their own actions, such as working hard, saving and investing.
This includes a strong majority of retirees (65%), near-retirees
(57%), and those 18-49 (65%).
- 30% believe that a secure retirement depends more on events out
of their control, such as events that affect the stock market.
5) Despite continued economic
uncertainty and continued concerns about state of the country,
Americans are increasingly more optimistic about America's
long-term prosperity, the direction of the economy and their
personal financial situation.
- 70% of Americans believe that things in the country are
"seriously off on the wrong track," while only 20% believe the
country is "headed in the right direction."
- Americans are more optimistic about the direction of the
economy than they were in October. A total of 56% now believe the
economy will improve over the next 12 months, compared to 50% in
October, and just 36% say it will worsen, compared to 46% in
October.
- On their personal financial situations, Americans are more
optimistic than has been measured in the two years over which the
Heartland Monitor Poll has tracked this question. A total of 44%
say they expect their personal financial situation to improve by
this time next year, while 14% say it will get worse.
- President Obama's approval rating remains at 44%, identical to
October, which was the lowest rating in the Heartland Monitor
Poll's history.
- 38% of Americans say they would vote to re-elect President
Obama, while 53% say they would vote for someone else. This is a
slight deterioration from the 41% who would re-elect and 51% who
would vote for someone else measured in October and represents a
low mark for the president.
Notes to Editors
Survey Methodology
A nationally representative survey of American adults
conducted November 30 – December 4, 2011, among N=1,200 American adults
age 18+. The sample includes oversampling of 200 adults age 50+,
with the data weighted to reflect age distribution of adult
population. Respondents were reached via landline and cell phone.
The survey has a margin of error of +/-2.83%.
About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer known for its "You're In Good
Hands With Allstate®" slogan. Now celebrating its 80th
anniversary as an insurer, Allstate is reinventing protection and
retirement to help nearly 16 million households insure what they
have today and better prepare for tomorrow. Consumers access
Allstate insurance products (auto, home, life and retirement) and
services through Allstate agencies, independent agencies, and
Allstate exclusive financial representatives in the U.S. and
Canada, as well as via
www.allstate.com and 1-800 Allstate®. For an overview of
the other Allstate-National Journal Heartland Monitor Polls,
visit http://www.allstate.com/heartland-monitor. Additional
information is available at www.storiesfromtheheartland.com.
About National Journal Group
National Journal is Washington's premier source for 360-degree
insight on politics and policy. With up-to-the-minute breaking news
and analysis at NationalJournal.com, the essential intelligence of
National Journal Daily, the knowledge and depth of
National Journal magazine, and the comprehensive campaign
coverage of National Journal Hotline, National Journal
delivers everything you need to know to stay ahead of the curve in
Washington.
About the Strategic Communications Practice of FTI
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formerly known as FD, is one of the world's most highly regarded
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About FTI Consulting
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dedicated to helping organizations protect and enhance enterprise
value in an increasingly complex legal, regulatory and economic
environment. With more than 3,700 employees located in 22
countries, FTI Consulting professionals work closely with clients
to anticipate, illuminate and overcome complex business challenges
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acquisitions, regulatory issues, reputation management and
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billion in revenues during fiscal year 2010. More
information can be found at www.fticonsulting.com.
SOURCE Allstate Corporation