Aegon Ltd. · EURONEXT:AGN
Aegon — Aegon Retirement Readiness Survey 2015 Webinar
22 slides from Aegon's conference presentation, May 27, 2015
Slide 1: Inspiring a World of Habitual Savers
Inspiring a World of Habitual Savers The Aegon Retirement Readiness Survey 2015 27 May, 2015 Catherine Collinson Mike Mansfield Mark Twigg Executive Director, Aegon Center for Longevity and Manager Retirement Research, Executive Director, Cicero Consulting Retirement and President, Transamerica Inst
Slide 2: Agenda
Agenda Announcing the Aegon Center for Longevity and Retirement The 4th Annual Aegon Retirement Readiness Survey ► Introduction ► About the survey ► Key findings ► Recommendations ► Q&A www.aegon.com/theCenter 2
Slide 3: Announcing the Aegon Center for Longevity and Retirement
Announcing the Aegon Center for Longevity and Retirement (The Center) The Center’s mission is to conduct research, educate the public, and inform a global dialogue on trends issues, and opportunities surrounding longevity, population aging, and retirement security It is a collaboration of expert
Slide 4: Introduction
Introduction This year’s survey demonstrates the benefits of habitual saving and highlights the need for making it a global trend where responsibility is shared by individuals, employers and governments It aims to: ► Gauge the level of retirement readiness in 15 countries, ► Identify the steps n
Slide 5: About the Survey
About the Survey Survey Methodology 2015 Survey: an online and nationally representative survey conducted in local languages in 15 countries between 6th – 23rd Feb 2015 Countries included: Respondents 1000 per country*** Australia Brazil** Canada* China*** France Germany Hungary India 900 **** emp
Slide 6: Key findings
Key findings 1 The improving state of retirement readiness: reality or illusion? 2 Active retirement: promoting greater health and vitality in retirement 3 Making habitual saving a global trend is a shared responsibility Employers make a major contribution toward improving the financial 4 well-being
Slide 7: Aegon Retirement Readiness Index increased slightly in 2015
1. The improving state of retirement readiness: reality or illusion? Aegon Retirement Readiness Index (ARRI) increased slightly in 2015 10 9 High 8 6.7 7.0 7 6.5 6.5 Index Scale 5.8 5.9 5.8 5.8 6.0 6.0 6.1 6 5.2 Medium 5.2 5.3 5.4 4.9 4.8 5.1 5.1 5 4 3 Low 2 1 0 2012 2013 2014 2015 The ARRI is Based
Slide 8: Fewer than one quarter of workers have a written retirement strategy
1. The improving state of retirement readiness: reality or illusion? However, many fail to plan properly – fewer than one quarter of workers in every survey country have a written retirement strategy Brazil 23% 47% 28% 3% USA 21% 44% 31% 4% India 21% 61% 17% 2% 4% 13% I have a written plan Spain 20%
Slide 9: Lack of financial resilience if forced into early retirement
1. The improving state of retirement readiness: reality or illusion? There is a potential widespread lack of financial resilience if forced into retirement sooner than expected – many employees fail to develop a backup plan 56% 43% Yes 40% No 10% What the backup plan is: Don’t Know 31% Savings 61% T
Slide 10: Retirement – a time for more leisure or for continued work?
2. Active retirement: promoting greater health and vitality in retirement Retirement – a time for more leisure or for continued work? See retirement as identified taking up 58% an opportunity to spend time with new hobbies as a 49%aspiration for their family and friends retirement Aspire to continue
Slide 11: Health is a key determinant of a happy and prosperous retirement
2. Active retirement: promoting greater health and vitality in retirement Health is a key determinant of a happy and prosperous retirement 74% of habitual Among those not fully retired, excellent health savers rate their health equates to confidence in as “excellent or good,” living a comfortable co
Slide 12: Keeping active is the biggest motive for working beyond retirement age
2. Active retirement: promoting greater health and vitality in retirement Keeping active is the biggest motive for working beyond retirement age 58% Want to keep active/ brain alert 74% 38% Enjoy my work/ career 45% Concerned social security benefits 33% will be less than expected 24% General anxiet
Slide 13: Saving habitually is the best way to improve retirement savings
3. Making habitual saving a global trend is a shared responsibility Saving habitually is the best way to improve retirement savings Habitual Saver Portrait By Country Less than More than 30% are 50% are habitual savers habitual savers 42% of men save 45% of those aged 74% in excellent / 34% feel eco
Slide 14: Turning aspiring savers into habitual savers
3. Making habitual saving a global trend is a shared responsibility Yet the biggest opportunity lies in turning aspiring savers into habitual savers Aspiring Saver Portrait By Country Less than 15% More than 30% are aspiring are aspiring savers savers Younger and 65% in excellent/ 21% feel economy w
Slide 15: Providing employees financial planning and advice support
4. Employers make a major contribution toward improving the financial well-being of their employees in retirement Providing employees financial planning and advice support Lowest: Highest: Only 21% of employees globally say they 8% 47% receive an annual retirement statement Only 14% of employees say
Slide 16: Providing employees the opportunity to stay in paid work
4. Employers make a major contribution toward improving the financial well-being of their employees in retirement Providing employees the opportunity to stay in paid work Lowest: Highest: Only 24% of employees say that their employer offers employees the opportunity to move from 16% 34% working full
Slide 17: Automatically enrolling employees into workplace retirement plans
4. Employers make a major contribution toward improving the financial well-being of their employees in retirement Automatically enrolling employees into workplace retirement plans Habitual Savers Aspiring Savers 72% find 59% find auto-enrollment auto-enrollment appealing at 6% appealing at 6%
Slide 18: Many expect to rely on the state for retirement income
5. Governments can significantly help by encouraging individuals to work longer and save more Many expect to rely on the state to provide them with retirement income 20% 23% Your own savings 26% 26% 25% 29% 27% 30% 31% 30% 34% 33% 31% 30% 36% & investments, 47% including IRAs 14% 22% 15% 23% 37% 19%
Slide 19: Social security reform is seen as necessary
5. Governments can significantly help by encouraging individuals to work longer and save more With the cost of social security becoming a greater concern, many individuals believe that some form of social security reform is necessary The government should reduce the overall cost of social security p
Slide 20: Recommendations
Recommendations The role of governments Governments can help encourage more employers to ergonomically tailoring workspaces to employees implement workplace retirement savings plans by needs (e.g., computers with larger type fonts, reducing the cost and regulatory burden for lighting, accessibilit
Slide 21: Questions and Answers
Questions and Answers Catherine Collinson Mike Mansfield Mark Twigg Executive Director, Aegon Manager Retirement Executive Director, Center for Longevity and Research, Aegon Center for Cicero Consulting Retirement and President, Longevity and Retirement Transamerica Institute 21
Slide 22: Company information
Company information Aegon Center for Longevity and Retirement The Aegon Center for Longevity and Retirement (The Center) is a collaboration of experts assembled by Aegon with representation from the Americas, Europe, and Asia. The Center’s mission is to conduct research, educate the public, and info
Aegon — Aegon Retirement Readiness Survey 2015 Webinar on 6ix