T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Investor Presentation (June 2019)
45 slides from T. Rowe Price's investor presentation, Jun 25, 2019
Slide 1: Focus on Gender: Retirement Savings and Spending 4
Focus on Gender RETIREMENT SAVINGS AND SPENDING 4: FINANCIAL BEHAVIOR & ATTITUDES T. Rowe Price June 25, 2019
Slide 2: Contents
Contents Methodology Workers: Gender Profile Workers: Financial Behaviors & Attitudes by Gender Retirees: Gender Profile Retirees: Retirement Experience by Gender 2
Slide 3: Methodology
Methodology Representative national study of 3,005 adults 21+ never retired, currently contributing to a 401(k) plan or eligible to contribute and have a balance of $1,000+ Along with 1,005 adults who have retired with a Rollover IRA or left-in-plan 401(k) balance Conducted online July 24 thro
Slide 4: Workers: Gender Profile
--» WORKERS: GENDER PROFILE
Slide 5: Profile
By total workers Profile As of 2018. Base: total interviews. Workers 2018 2017 2015 N= 3005 3,022 3,026 Male 61% 63% 60% Female 39% 37% 40% Average age 44 43 42 Work status: Working full time 92% 92% 91% Working part time 8% 8% 9% Married/Partnered 72% 70% 68% 5
Slide 6: Profile
By total workers Profile As of 2018. Base: total interviews. Workers 2018 2017 2015 N= 3005 3,022 3,026 Have children < 18 in HH 43% 45% 41% Have adult children 50% 47% 41% Have a living parent 74% 73% 82% Education: High school or less 25% 26% 25% Some post secondary 29% 29% 30% College degree or m
Slide 7: Median Annual Income
By total workers Median Annual Income $120,000 $100,000 $89,400 $79,000 $77,400 $80,000 $62,400 $60,000 $57,500 $55,300 $40,000 $20,000 $0 2015 2017 2018 Men Women 7
Slide 8: Median Annual Income by baby boomer generation
By baby boomer generation Median Annual Income $120,000 $102,800 $100,000 $86,200 $82,700 $80,000 $61,200 $60,000 $53,600 $51,300 $40,000 $20,000 $0 2015 2017 2018 Men Women 8
Slide 9: Median Annual Income by millennial generation
By millennial generation Median Annual Income $120,000 $100,000 $84,900 $80,000 $63,300 $63,900 $60,000 $55,000 $56,100 $47,900 $40,000 $20,000 $0 2015 2017 2018 Men Women 9
Slide 10: Workers: Financial Behaviors and Attitudes by Gender
WORKERS: FINANCIAL BEHAVIORS AND ATTITUDES BY GENDER
Slide 11: Median 401(k) Balance
By total workers Median 401(k) Balance $90,000 $82,300 $80,000 $73,500 $70,000 $67,400 $60,000 $50,000 $40,000 38,100 $33,800 $32,000 $30,000 $20,000 $10,000 $0 2015 2017 2018 Men Women 11
Slide 12: Median 401(k) Balance by baby boomer generation
By baby boomer generation Median 401(k) Balance $160,000 $143,700 $136,900 $138,200 $140,000 $120,000 $100,000 $80,000 58,700 $60,000 $50,400 $51,500 $40,000 $20,000 $0 2015 2017 2018 Men Women 12
Slide 13: Median 401(k) Balance by millennial generation
By millennial generation Median 401(k) Balance $50,000 $44,800 $45,000 $42,300 $40,000 $35,000 $30,000 $25,000 $22,000 $20,000 $15,000 $12,300 $10,600 $11,200 $10,000 $5,000 $- 2015 2017 2018 Men Women 13
Slide 14: Median 401(k) Deferral Rates
By worker generations Median 401(k) Deferral Rates 12% 10% 10% 8% 8% 7% 6% 5% 4% 2% 0% Millennials Baby Boomers Men Women 14
Slide 15: Financial Truths for Men
By total workers Financial Truths for Men How often do you think the following statements are true for you and your household? You are able to stick to your monthly budget if you have one 27% 37% 25% 11% You pay your credit card balances in full when due 42% 19% 22% 17% You make after-tax savings af
Slide 16: Financial Truths for Women
By total workers Financial Truths for Women How often do you think the following statements are true for you and your household? You are able to stick to your monthly budget if you have one 24% 36% 32% 8% You pay your credit card balances in full when due 34% 17% 25% 24% You use a fixed budget for y
Slide 17: Employment Industry
By total workers Employment Industry Which one of the following industries most nearly describes your work? Trade, transportation or utilities 15% Professional or business services 15% Manufacturing 13% The financial industry 12% Health care and social assistance 10% Other services (except public ad
Slide 18: Employment Industry by baby boomer generation
By baby boomer generation Employment Industry Which one of the following industries most nearly describes your work? 25% 20% 20% 20% 17% 15% 15% 15% 15% 14% 13% 11% 10% 8% 6% 7% 5% 5% 5% 5% 4% 3% 4% 3% 2% 2% 1% 1% 1% 1% 0% 0% Construction Educational Health Care Financial Information Leisure and Man
Slide 19: Employment Industry by millennial generation
By millennial generation Employment Industry Which one of the following industries most nearly describes your work? 18% 17% 16% 15% 14% 14% 14% 13%13% 12% 12% 10% 11% 10% 10% 10% 8% 8% 7% 6% 6% 5% 5% 5% 5% 4% 4% 3% 3% 3% 2% 2% 1% 1% 0% 0% Construction Educational Health Care Financial Information Le
Slide 20: Household Debt
By total workers Household Debt Please indicate which of the following types of debt are held by you or others in your household. Please indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt) Workers Value of outstanding debt
Slide 21: Household Debt by baby boomer generation
By baby boomer generation Household Debt Please indicate which of the following types of debt are held by you or others in your household. 70% 63% 62% 60% 50% 40% 36% 34% 30% 20% 17% 17% 15% 14% 13% 10% 9% 6% 4% 0% Credit Card Student Loan Car Loan Medical Debt Other Debt Home Equity Loans (not coun
Slide 22: Household Debt--Median Values
By baby boomer generation Household Debt--Median Values Please indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt) $35,000 $30,000 $28,686 $25,000 $21,494 $20,000 $19,139 $16,049 $15,400 $15,000 $13,182 $10,000 $4,535 $5,00
Slide 23: Household Debt by millennial generation
By millennial generation Household Debt Please indicate which of the following types of debt are held by you or others in your household. 80% 76% 74% 70% 60% 50% 50% 45% 40% 34% 33% 32% 30% 24% 23% 19% 20% 16% 16% 10% 0% Credit Card Student Loan Car Loan Medical Debt Other Debt Home Equity Loans (no
Slide 24: Household Debt–Median Values
Household Debt–Median Values Please indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt) $25,000 $20,901 $20,157 $20,000 $17,515 $15,609 $15,000 $13,044 $11,978 $10,000 $5,000 $3,959 $4,100 $3,320 $3,040 $3,082 $2,834 $- Cre
Slide 25: Financial Expert Recommendation
By total workers Financial Expert Recommendation As far as you know, what percentage of your income, including employer contributions, do financial experts typically recommend someone your age should contribute to your 401(k) to make sure you have a comfortable retirement? 30% 25% 25% 25% 24% 20% 20
Slide 26: Reasons for Contributing Below Recommended
By total workers Reasons for Contributing Below Recommended Base: contributing less than what experts recommend As you probably know, you (combined with your employer) are contributing less to your 401(k) than what financial experts typically recommend. Please indicate below the extent to which any
Slide 27: Sources of Funds for Emergency
By total workers Sources of Funds for Emergency If you suddenly faced an emergency that required more cash than you had on hand, to which of the following sources of funds would you turn? 60% 50% Men 50% 47% 46% 43% 43% Women 40% 35% 32% 32% 31% 28% 29% 29% 30% 28% 23% 22% 21% 21% 20% 20% 20% 18% 17
Slide 28: Retirement Expectations
Retirement Expectations Given the retirement savings you have in place right now and the rate at which you may be adding to those savings, which of the statements below do you expect will be true for you in retirement? Please select all that apply. 60% 54% 51% 50% 48% 46% 45% 43% 40% 38% 37% 30% 31%
Slide 29: Retirement Expectations by baby boomer generation
By baby boomer generation Retirement Expectations Given the retirement savings you have in place right now and the rate at which you may be adding to those savings, which of the statements below do you expect will be true for you in retirement? Please select all that apply. 60% 56% 54% 52% 50% 49% 4
Slide 30: Have Considered Delaying Retirement
By baby boomer generation Have Considered Delaying Retirement In the past 12 months have you considered delaying your retirement beyond your original target age, or haven’t you? 60% 50% 50% 42% 40% 30% 20% 10% 0% YES - Men YES - Women 30
Slide 31: Top Financial Advice Attributes for Men
By total workers Top 5 Financial Advice Attributes for Men Thinking about advice to help you achieve your lifetime financial goals, how important is having advice that does the following? Is easy to use 50% 37% 9% 4% Alerts you to critical developments in your account 40% 40% 13% 7% Is based on pers
Slide 32: Top Financial Advice Attributes for Women
By total workers Top 5 Financial Advice Attributes for Women Thinking about advice to help you achieve your lifetime financial goals, how important is having advice that does the following? Is easy to use 63% 27% 6% 4% Fits into your work or personal schedule 46% 39% 10% 6% Alerts you to critical de
Slide 33: Retirees: Gender Profile
--- RETIREES: GENDER PROFILE
Slide 34: Profile
By total retirees Profile As of 2018. Base: total interviews. Total retirees Male Female N= 1004 466 538 Male 49% 100% 0% Female 51% 0% 100% Average age 72 72 73 Average years since retirement 11 11 11 Work status: Working full time 2% 3% 1% Working part time 8% 9% 7% Retired and not working or look
Slide 35: Profile by retiree gender
By retiree gender Profile As of 2018. Base: total interviews. Total retirees Male Female N= 1004 466 538 Have children < 18 in HH 2% 1% 3% Have adult children 77% 76% 78% Have a living parent 17% 20% 13% Education: High school or less 35% 25% 45% Some post secondary 23% 24% 22% College degree or mor
Slide 36: Percentage of Asset Types
By total retirees Percentage of Asset Types Percentage of Retired Men and Women (With Defined Contribution or IRA Assets) With Different Types of Assets, by Marital Status Men Women Single Married Single Married 401(k) or Roth 401(k) at current employer 36% 36% 32% 26% Money in 401(k), 403(b), 457,
Slide 37: Median Value of Asset Types
By total retirees Median Value of Asset Types Medians of Different Types of Assets of Retired Men and Women with Defined Contribution or IRA Assets, by Marital Status Men Women Single Married Single Married 401(k) or Roth 401(k) at current employer $ - $ - $ - $ - Money in 401(k), 403(b), 457, profi
Slide 38: Marital Status of Men
By total retirees Marital Status of Men Marital Status of Men by Years Since Retirement 80% 75% 71% 69% 70% 60% 50% 40% 30% 20% 13% 14% 10% 10% 10% 8% 7% 7% 7% 6% 3% 1% 1% 0% Married Living with Partner Divorced/Separated Widow Never Married 5 years or less Between 5 years and 10 years 11 years or m
Slide 39: Marital Status of Women
By total retirees Marital Status of Women Marital Status of Women by Years Since Retirement 70% 60% 58% 56% 50% 50% 40% 35% 30% 19% 20% 20% 15% 13% 10% 10% 7% 4% 5% 5% 3% 0% 0% Married Living with Partner Divorced/Separated Widow Never Married 5 years or less Between 5 years and 10 years 11 years or
Slide 40: Work Status
By total retirees Work Status Bearing in mind that some people retire and then go back to work, which one of the following phrases best describes your work situation? 100% 90% 87% 83% 80% 70% 60% 50% 40% 30% 20% 10% 6% 6% 4% 3% 4% 5% 2% 1% 1% 0% 0% Retired but now working Retired but now working Ret
Slide 41: Work Status
By total retirees Work Status You mentioned that you are retired but working either part time of full time or looking for work. Can you please tell us why you are still working after retirement? 60% 55% 50% 48% 47% 48% 43% 42% 40% 40% 31% 30% 25% 26% 23% 22% 20% 17% 10% 6% 0% I need the money This i
Slide 42: Retirees: Retirement Experience by Gender
RETIREES: RETIREMENT EXPERIENCE BY GENDER
Slide 43: Retirement Experience (retired 5 years or less)
Retirement Experience How much do you agree or disagree with the following statements? Retirement Experience by Gender for Those Retired for 5 Years or Less 70% 62% Men 60% 56% Women 50% 47% 44%43% 41% 40% 38%39% 38% 36% 30% 24% 20% 20% 19% 16% 17% 10% 11% 10% 8% 7% 6% 7% 5% 4% 3% 0% Agree Agree Dis
Slide 44: Retirement Experience (retired 5 to 10 years)
Retirement Experience How much do you agree or disagree with the following statements? Retirement Experience by Gender for Those Retired for More Than 5 Years but 10 Years or Less 80% Men 70% 68% Women 60% 55% 53% 50% 46% 47% 44% 40% 40% 36% 32% 32% 30% 25% 21% 19% 19% 20% 16% 12% 10% 6% 4% 5% 4% 5%
Slide 45: Retirement Experience (retired 11 years or more)
Retirement Experience How much do you agree or disagree with the following statements? Retirement Experience by Gender for Those Retired for 11 Years or More 80% 70% Men 70% 59% Women 60% 50% 51% 50% 47% 45% 40% 38% 36% 33% 30% 26% 27% 23% 20% 18%17% 12% 10% 8% 8% 6% 6% 5% 5% 5% 1% 2% 0% Agree Agree
T. Rowe Price Group — Investor Presentation (June 2019) on 6ix