Changewave Research: Baby Boomer Work, Leisure, Savings & Retirement

ChangeWave Research: Baby Boomer Work, Leisure, Savings & Retirement

ChangeWave Research Report:

Baby BoomerWork, Leisure, Savings & Retirement Survey

Overview

The first of the Baby Boomers are turning 60. To learn more about work, leisure,savings, and retirement plans of this critically important group, we surveyedBoomers working in the business and technology professions betweenJuly 18-24, 2006. A total of 2,466 ChangeWave Alliance members age 42 & olderparticipated.

Bottom Line:By a two-to-one margin (52% to 26%) Baby Boomer professionals report they are currently saving more per month than 5 years ago.When we asked what, if anything, they’re cutting back on to save more today, the number one area mentioned was Travel/Vacation (10%). Respondents also saidChildren Now Out of College/ On Their Own(10%) andEating Out (9%).

Saving For Retirement. Focusing on retirement savings, three-in-ten(29%)Boomer professionals say they’ve saved more money for retirement over the past 6 months compared to the previous 6 months. Only 12% say they’ve saved less, while another 49% say they've saved the same amount. Respondents were optimistic going forward – 28% saying they’ll save more over the next 6 months and only 7% less, with 56% saying they’ll save the same amount.

Such optimism notwithstanding, nearly half (47%) are reporting they are still worried about saving enough money for retirement (9% Very Worried; 38% Somewhat Worried).

Not surprisingly, there is a strong correlation between savingsfor retirement and household income. Respondents in households earning Less Than $50,000 per year are far less likely to reportthat they saved more for retirement over the past 6 months.

Work Habits. When it comes to work, the consensus estimate among respondents is that they're currently working 44 hrs per week at their primary job.

Two-in-five respondents (40%) believe they will cut back on the hours they spend at their primary job prior to retirement – and the consensus among this group is they'll start cutting back at age 60.

BiggestFears. Deteriorating health (31%) and financial concerns (30%) were the top retirement fears expressed by respondents – but high health insurance costs (10%) and boredom (9%) also received significant mention.

What is your biggest fear about retirement?

Deteriorating Health / 31%
Financial Concerns/Not Having Enough Money / 30%
High Health Insurance Costs / 10%
Boredom / 9%
Inflation / 4%
International/Domestic Economic Crises / 3%
Other / 5%
No Fears / 7%

Planning for Retirement. A total of 36% of respondentssay they’d like to retire within the next 5 yrs, but significantly fewer (27%) think they’ll actually do so in the desired time frame.

Moreover, their working days wont actually end with retirement. An astonishing two-thirds (67%) of respondents say they expect to work at some point after they retire.

Boomers and Leisure. Dining out (73%) and travel/vacations (73%) still rank as the most popular leisure activities enjoyed by respondents over the past 12 months. But while travel/vacations appears likely to grow in popularity once respondents retire (+4), dining out appears likely to diminish in popularity (-10).

We note that of the leisure activities examined, volunteer work (+19) and adult education courses (+14) are by far the most likely to gain in popularity once respondents retire.

Summary of Key Findings

The ChangeWave Alliance is a group of 8,500 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

Helping You Profit From A Rapidly Changing World ™

Table of Contents

Summary of Key Findings...... 2

The Findings...... 4

(A) General Savings ...... 4

(B) Retirement Savings ...... 6

(D) Leisure Activities ...... 14

ChangeWave Research Methodology...... 17

About ChangeWave Research...... 18

I. The Findings

Introduction

The first of the Baby Boomers are turning 60. To learn more about work, leisure, savings, and retirement plans of this critically important group, we surveyed Boomers working in the business and technology professions between July 18-24, 2006. A total of 2,466 ChangeWave Alliance members age 42 & olderparticipated.

Note that In addition to Baby Boomer respondents (ages 42-60), our survey also included a group of respondents more than 60 years of age – enabling us to track differences between the two groups, along with changes within the Baby Boomer group.

Total Respondents - Age 42 and Older (n=2,466)

(A) General Savings

(1) Question Asked: Let's focus on how you're currently saving money. Compared to 5 years ago, would you say you're now saving more money per month, about the same amount, or less money per month than you did 5 years ago?

Savings Now Compared to 5 Years Ago
Saving more money per month / 52%
Saving less money per month / 26%
Saving same amount of money / 19%
Not saving any money / 3%
Don't Know/No Answer / 0%

BoomerProfessionals Currently Saving More Than 5 Years Ago.By a two-to-one margin (52% to 26%) respondents report they are currently saving more per month than 5 years ago.

I. Breakout by Age:Current Savings Compared to 5 Years Ago

Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than 60 Years
of Age
Now saving more money per month compared to 5 years ago / 52% / 56% / 55% / 43%
Now saving less money per month compared to 5 years ago / 26% / 24% / 24% / 32%
Now saving same amount of money per month as 5 years ago / 19% / 19% / 18% / 20%
Not saving any money now and didn't save 5 years ago / 3% / 1% / 2% / 5%

(2) Question Asked: And what about 5 years from now? Do you think you'll be saving more money per month 5 years from now, about the same amount, or less money per month 5 years from now?

Savings 5 Years From Now Compared to Now
Saving more money per month / 42%
Saving less money per month / 26%
Saving same amount of money / 24%
Not saving any money / 3%
Don't Know/No Answer / 5%

Looking ahead five years, respondents are somewhat more cautious, with 42% believing they’ll be saving more than now and 26% less.

I. Breakout by Age:Savings 5 Years from Now Compared to Now

Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than 60 Years
of Age
Saving more money per month / 42% / 59% / 43% / 19%
Saving less money per month / 26% / 12% / 26% / 46%
Saving same amount of money / 24% / 25% / 23% / 24%
Not saving any money / 3% / 0% / 2% / 6%
Don't Know/No Answer / 5% / 3% / 5% / 4%

(2A) Question Asked: What, if anything, are you cutting back on to save more money today than you did five years ago?(n=1,083)

Travel/Vacation / 10%
Children Now Out of College/ On Their Own / 10%
Eating Out / 9%
Car Purchases / 5%
Entertainment / Recreation / 4%
Monthly Finance Paymentsfor Mortgage, Car, Credit Card etc. / 4%
Clothing Expenditures / 3%
Discretionary / Luxury Spending / 3%
Better Gas or Energy Efficiency/Less Driving / 2%
Housing Costs / Home Improvements / 2%
Other / 10%
Nothing/ Increase in Salary / 52%

What’s Getting Cut in Order toSave More? When we asked what, if anything, they’re cutting back on to save more today, the number one area mentioned was Travel/Vacation (10%). Respondents also said Children Now Out of College/ On Their Own (10%) and Eating Out (9%).

(B) Savings and Retirement

(3) Question Asked: Over the past 6 months, would you say you have been saving more money for retirement, less money or about the same amount of money compared to the previous 6 months?

Saving for Retirement Past 6 Months
Compared to
Previous 6 Months
Saving More for Retirement / 29%
Saving Less for Retirement / 12%
Saving Same Amount for Retirement / 49%
Not Saving at All for Retirement / 8%
Don't Know/NA / 2%

Saving for Retirement – Past 6 Months. Focusing specifically on retirement savings, three-in-ten (29%) report they’ve saved more money for retirement over the past 6 months compared to the previous 6 months; only 12% said they saved less.

I. Breakout by Age:Saving for RetirementPast 6 Months

Total / Younger
Boomers
Age 42-50 / Older
Boomers
Age 51-60 / More Than
60 Years
of Age
Saving More for Retirement in Past 6 Months / 29% / 29% / 30% / 25%
Saving Less for Retirement in Past 6 Months / 12% / 13% / 12% / 14%
Saving Same Amount for Retirement in Past 6 Months / 49% / 54% / 51% / 41%
Not Saving at All for Retirement in Past Six Months or Previous Six Months / 8% / 4% / 7% / 15%
Don't Know/NA / 2% / 1% / 0% / 5%

Similar to the findings on general savings, respondents Greater than Age60 are the group least likely to say they’ve been saving more for retirement.

II. Breakout by Income:Saving for RetirementPast 6 Months

Total / Less Than $50,000/yr / $50,001-$100,000/yr / $100,001-$150,000 / Greater Than $150,000/yr
Saving More for Retirement in Past 6 Months / 29% / 14% / 22% / 31% / 32%
Saving Less for Retirement in Past 6 Months / 12% / 24% / 14% / 12% / 10%
Saving Same Amount for Retirement in Past 6 Months / 49% / 30% / 50% / 50% / 53%
Not Saving at All for Retirement in Past Six Months or Previous Six Months / 8% / 25% / 12% / 6% / 4%
Don't Know/NA / 2% / 6% / 2% / 1% / 1%

Saving for Retirementby Income Group. Not surprisingly, there is a strong correlation between savings for retirement and household income. Respondents in households earning Less Than $50,000 per year are far less likely to report that they saved more for retirement over the past 6 months.

(3A) Question Asked: Looking ahead at the next 6 months, will you be saving more money for retirement, less money or about the same amount of money compared to the past 6 months?

Saving for Retirement
Next 6 Months
Compared to
Past 6 Months
Saving More for Retirement / 28%
Saving Less for Retirement / 7%
Saving Same Amount for Retirement / 56%
Not Saving at All for Retirement / 6%
Don't Know/NA / 3%

Saving for Retirement Next 6 Months. Looking Respondents are even more optimistic going forward – 28% think they’ll save more over the next 6 months and only 7% less – a net +21 saving more.

(3B) Question Asked: How worried would you say you are about saving enough money for retirement?

Very Worried / 9%
Somewhat Worried / 38%
Not Very Worried / 34%
Not Worried At All / 17%
Not Applicable/NA / 3%

I. Breakdown by Age Group:

Total / Younger
Boomers
Age 42-50 / Older
Boomers
Age 51-60 / More Than
60 Years
of Age
Very Worried / 9% / 11% / 10% / 5%
Somewhat Worried / 38% / 47% / 38% / 26%
Not Very Worried / 34% / 32% / 35% / 34%
Not Worried At All / 17% / 10% / 15% / 28%
Not Applicable/NA / 3% / 1% / 1% / 8%

II. Breakdown by Income Group:

Total / Less Than $50,000/yr / $50,001-$100,000/yr / $100,001-$150,000 / Greater Than $150,000/yr
Very Worried / 9% / 10% / 8% / 9% / 6%
Somewhat Worried / 38% / 43% / 41% / 38% / 35%
Not Very Worried / 34% / 29% / 34% / 35% / 35%
Not Worried At All / 17% / 8% / 13% / 15% / 22%
Not Applicable/NA / 3% / 11% / 4% / 3% / 2%

Worried About Saving for Retirement. Such optimism notwithstanding, nearly half (47%) are reporting they are still worried about saving enough money for retirement (9% Very Worried; 38% Somewhat Worried).

We note that those closest to retirement (More Than 60 Years of Age) are least likely to say they are worried (31%). In contrast, those farthest from retirement (Younger Boomers Age 42-50) are most likely to be worried (58%).

Not surprisingly, there is a strong correlation with income level -- 53% of respondents in household earning Less than $50,000 per year report they are Very/Somewhat Worried, but just 41%from households earning More than $150,000 per year report they are worried.

(4) Question Asked: In an average week, how many hours do you spend working at your primary job?

Hours Spent Working in an Average Week –Breakdown by Age Group

Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than
60 Years
of Age
1-10 Hours / 2% / 0% / 2% / 4%
11-20 Hours / 4% / 2% / 3% / 7%
21-30 Hours / 5% / 3% / 4% / 8%
31-40 Hours / 16% / 16% / 17% / 14%
41-50 Hours / 42% / 52% / 44% / 26%
51-60 Hours / 14% / 18% / 16% / 8%
60+ Hours / 7% / 8% / 8% / 4%
Do Not Work/I Am Retired / 10% / 1% / 6% / 29%
Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than
60 Years
of Age
Consensus Estimate / 44 Hrs / 46 Hours / 44 Hours / 38 Hours

Hours Worked.The consensus estimate among respondents is that they're currently working 44 hrs per week at their primary job.

Breakdown by Income –Hours Spent Working in an Average Week

Total / LessThan
$50,000 / $50,001-$100,000 / $100,001-
$150,000 / GreaterThan
$150,000
1-10 Hours / 2% / 5% / 2% / 2% / 1%
11-20 Hours / 4% / 6% / 4% / 2% / 3%
21-30 Hours / 5% / 8% / 5% / 3% / 5%
31-40 Hours / 16% / 19% / 21% / 17% / 13%
41-50 Hours / 42% / 21% / 42% / 47% / 40%
51-60 Hours / 14% / 3% / 8% / 14% / 20%
60+ Hours / 7% / 5% / 3% / 6% / 11%
Do Not Work/I Am Retired / 10% / 32% / 15% / 9% / 5%
Total / LessThan
$50,000 / $50,001-$100,000 / $100,001-
$150,000 / GreaterThan
$150,000
Consensus Estimate / 44 Hrs / 37 Hours / 41 Hours / 44 Hours / 46 Hours

The income breakdown shows thehigher the total household income level the higher the average estimate of hours worked – peaking at 46 hours for respondents in households earning Greater Than $150,000 per year.

(5A) Question Asked: Prior to retirement, do you think you'll cut back on the number of hours you spend at your primary job?

Yes, a Significant Cutback in Hours / 12%
Yes, a Slight Cutback in Hours / 28%
No Cutback in Hours / 42%
No, an Increase in Hours / 3%
Don't Know/No Answer / 5%
I'm Already Retired / 8%

Plans to Cutback Prior to RetirementTwo-in-five respondents (40%) believe they will cut back on the hours they spend at their primary job prior to retirement.

(5B) Question Asked: At what age will you begin to cut back your work hours?(n=988)

Age Will Begin to Cut Back Work Hours – Breakout by Age Group

Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than
60 Years
of Age
40-45 / 1% / 2% / 1% / --
45-50 / 3% / 7% / 1% / --
50-55 / 14% / 29% / 8% / --
55-60 / 29% / 37% / 35% / 2%
60-65 / 34% / 20% / 45% / 33%
65-70 / 14% / 3% / 9% / 45%
70-75 / 3% / 1% / 2% / 12%
After Age 75 / 1% / 0% / 0% / 6%
Total / Younger Boomers
Age 42-50 / Older Boomers
Age 51-60 / More Than
60 Years
of Age
Consensus Estimate / Age 60 / Age 56 / Age 60 / Age 67

When Will Cutbacks in Hours Begin? The consensus amongrespondents who say they plan to reduce their hours is that they’ll start cutting back at age 60.

Note that Younger Boomers provide the lowestage estimate for when they’ll start cutting back (age 56), while the group over 60 years of age estimate they won’t begin cutting back till age 67.

(6) Question Asked: When would you like to retire?* (n=2,005)

(6A) Question Asked: When do you think you'll actually retire?* (n=1,976)

When Would You Like To Retire? / When Do You Think You’ll Actually Retire?
Within the Next Year / 6% / 3%
In 1-2 years / 8% / 6%
In 3-5 years / 22% / 18%
In 6-10 years / 32% / 28%
More than 10 years / 29% / 39%
Don't Know / 3% / 6%

*Note: Excludes respondents who say they’re Already Retired or Don’t Want to Retire

Planning for Retirement. A total of 36% of respondentssay they’d like to retire within the next 5 yrs, but significantly fewer (27%) think they’ll actually do so in the desired time frame.

(7) Question Asked: What about working after retirement. Do you think you'll work at any point after you have retired? *(n=2,005)

Yes / 67%
No / 13%
Don't Know / 20%

*Note: Excludes respondents who say they’re Already Retired or Don’t Want to Retire

Working After Retirement– Breakout by Income Group

Total / LessThan
$50,000 / $50,001-$100,000 / $100,001-
$150,000 / GreaterThan
$150,000
Yes / 67% / 73% / 66% / 64% / 69%
No / 13% / 18% / 13% / 13% / 12%
Don't Know / 20% / 9% / 21% / 23% / 18%

Working Won’t End With Retirement.Moreover, working will not actually end with retirement. An astonishing two-thirds (67%) of respondents say they expect to work at some point after they retire.

(8) Question Asked: What is your biggest fear about retirement?

Retirement Fears. Deteriorating health (31%) and financial concerns (30%) are the predominant fears expressed by respondents concerning their retirement. High health insurance costs (10%) also received double digit mention.

(D) Leisure Activities

(9) Question Asked: Which of the following leisure activities have you engaged in during the past 12 months? (Check All That Apply)

(9A) Question Asked: And which of the following leisure activities do you think you'll engage in once you actually retire? (Check All That Apply)

Have Done It In Past 12 Months / Will Do When
Actually Retired / Change
Score
Volunteer Work / 27% / 46% / +19
Adult Education Courses / 17% / 31% / +14
Cooking for Fun / 26% / 32% / +6
Hunting/Fishing / 20% / 26% / +6
Playing a Musical Instrument / 13% / 19% / +6
VisitingMuseums & Galleries / 37% / 43% / +6
Camping / 17% / 22% / +5
Golf / 31% / 36% / +5
Painting/Drawing / 4% / 9% / +5
Arts & Crafts / 6% / 10% / +4
Boating & Water Activities / 30% / 34% / +4
Dancing / 10% / 14% / +4
Travel/Vacations / 73% / 77% / +4
Woodworking/Carpentry / 17% / 21% / +4
Cycling / 29% / 32% / +3
Going to the Gym / 37% / 40% / +3
Photography / 33% / 36% / +3
Skiing/Winter Sports / 18% / 21% / +3
Tennis / 13% / 15% / +2
Gardening / 50% / 51% / +1
Aerobics / 13% / 13% / 0
Bird Watching / 9% / 9% / 0
Live Concerts/Theater / 44% / 44% / 0
Bowling / 9% / 8% / -1
Reading & Libraries / 59% / 56% / -3
Running/Jogging / 26% / 23% / -3
Do-It-Yourself Home Improvements / 57% / 52% / -5
Watching Movies / 59% / 51% / -8
Dining Out (Restaurants) / 73% / 63% / -10

Boomers and Leisure. Dining out (73%) and travel/vacations (73%) still rank as the most popular leisure activities enjoyed by respondents over the past 12 months. But while travel/vacations appears likely to grow in popularity once respondents retire (+4), dining out appears likely to diminish in popularity (-10).

We note that of the leisure activities examined, volunteer work (+19) and adult education courses (+14) are by far the most likely to gain in popularity once respondents retire.

(9B) Question Asked: Can you think of anything else – such as a major purchase or expenditure – that you are planning on doing once you retire? (n = 662)

Second/Summer/Vacation Home / 20%
Travel Plans / 12%
RV/Motor Home / 11%
Moving to a New Home/Relocating / 11%
Boat / 11%
Car / 10%
Retirement Home / 4%
Move Out Of Country / 3%
Home Remodeling / 3%
Expenditures on Children or Parents / 3%
Downsizing Home / 5%
Land/Real Estate / 3%
Electronic / 2%
Other Vehicle / 2%
Other / 10%

Major Purchases Once You Retire. One-in-five respondents (20%) say they are planning to buy a Second/Summer/Vacation Home once they retire, and 12% say they have Travel Plans. RV Purchases (11%), Moving to a New Home (11%), Boat Purchases (11%) and Buying a New Car (10%) also head up the list of things respondents plan on doing once they retire.

(10) Question Asked: Thinking about the products and services you purchase, can you name one or two things that you buy currently that you weren't buying five years ago?(n=1040)

High-Speed/Broadband/Cable Internet Service / 19%
Cell Phones/Cellular Service / 15%
Children-Related Products/Services / 10%
Medications/Pharmaceuticals / 9%
Household Repairs/Improvements / 7%
Vitamins/Health/Nutritional Supplements/Products / 6%
Cable Television Service / 6%
Flat Screen/Large Screen/HD/LCD TV / 5%
Life/Health Insurance / 4%
Lawn Care/Landscaping Services / 3%
Investment Services / 3%
iPod/MP3/Digital Music Player / 3%
More/Different Travel/Vacation / 3%
Computer / 3%
Digital Camera / 3%
DVDs / 3%
Satellite Radio / 2%
Luxury/Newer Automobiles / 2%
Wine/Liquor / 2%
Airplane/Boat/RV and Related Supplies / 2%
iTunes/Online Music Downloads / 2%
Satellite Television / 2%
Other Consumer Electronic/Technology Items / 9%
Other Leisure Goods and Services / 8%
Other Health/Medical/Cosmetic Expenditures / 6%
Other Products/Services / 5%

New Purchasing Habits. High Speed Internet(19%) and Cell Phones/Cellular Service (15%) top the list of things respondents say they currently buy that they weren’t buying five years ago. Children-Related Products/Services (10%) ranks third and Medications(9%) fourth.