Initial Impressions/Insights

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1 2016 Member Opinion Survey Initial Impressions/Insights Deb Whitman Rebecca Gillan John Hagerty AARP Research August 2016 what members really care about

2 Agenda Background & Methodology Critical Highlights Summary & Insights 2

3 2016 MOS Team AARP Research SVP: Becky Gillan Team Members & Ed Evans Sonya Gross Team Members Critical and Critical Contributors: Kate Bridges Karen Turner Rachelle Cummins Sarah Kerman Project Lead: John Fries Jennifer Leslie Willieree Murray John Hagerty Terry Keenan Jean Koppen 3

4 Background & Methodology 4

5 Background MOS fields every few years since 1994 last fielded in 2012 Dual mode survey (mail and online), capturing a variety of member information such as interests, concerns, life events, civic participation, technology use, and demographics Survey offered in 5 languages (Chinese, Vietnamese, Filipino, Spanish, English) 23,000 responses provide opportunities to compare responses across multiple segments and key membership groupings (ages, incomes, MCL, engagement) Ipsos was vendor utilized Field dates are April 17 July 8, 2016 Used by AARP in a variety of ways Strategic planning - deep understanding of members concerns and interests, their relationship to AARP, and demographic shifts Segmentation strategy Membership data strategy/modeling Modeling for direct marketing This presentation will focus on overall membership views with future analysis diving deeper into segments and more complex modeling analysis 5

6 Critical Highlights 6

7 Question Q15: Please rate your ow n level of concern about the follow ing issues? Top concerns are consistent from previous waves of MOS and focused around health/money Top Concerns (extremely/very concerned) Having SS in Future 67% 18% Staying Mentally Sharp 60% 24% Having Medicare in Future 59% 24% Living a healthy lifestyle 48% 31% Having health insurance 51% 26% Paying for healthcare Consumer fraud Declining physical health Aging in home 53% 48% 41% 45% 24% 28% 28% 24% Extremely Wealth Health Self Very Continuing to drive/get around 40% 27% 0% 40% 60% 80% 100% Having access to Social Security in the future is the top concern for members, with Staying Mentally Sharp and Medicare not too far behind 7

8 Top interests are consistent with previous waves and focused around health and self Question Q16: Please rate your ow n level of interest about the follow ing? Top Interests (extremely/very interested) Staying mentally sharp 61% 29% Staying physically fit 54% 33% Time with family, friends 47% 37% Maintaining a healthy diet 47% 35% Getting enough sleep 46% 32% Spending time on hobbies 34% 39% Reducing stress 45% 27% Extremely Very Learning new things Traveling Access to unbiased political info 33% 34% 35% 35% 31% 30% Wealth Health Self Access to unbiased candidate info 28% 34% 0% 40% 60% 80% 100% Staying mentally sharp and physically fit are the top two interests followed by spending time with family/friends and maintaining a healthy diet 8

9 The most common life events are typically negative in nature and have been consistent over time Question Q13: Which of the follow ing events have affected your life or your spouse/ partner s life in the last 2 years? Incidence of Top Life Events for 2016 Reduction in income Death of family, friend Chronic health problems Reduction in savings Decline in physical health Difficulty walking Hearing or vision loss Started Retirement Started Social Security Birth of grandchild Modified/remodeled home Debt Problems No Life Events 9% 21% 18% 17% 17% 16% 14% 32% 31% 29% 29% 27% Health and money problems dominate the majority of all life events that impact members. 0% 5% 10% 15% 25% 30% 35% Over 90% of members have experienced at least one life event in past two years The only positive life events that appear in the top 10 are birth of a grandchild, remodeled home, and retirement Additionally, 38% of members say they are currently providing caregiving services for a family member or loved one 9

10 Many contribute money to charities but less likely to donate politically Question Q11: In the last 12 months, have you or anyone in your household contributed money to:? Charitable org 82% Church/ religious 74% About half of members indicate that they have volunteered for a group/ organization over the past year Political advocacy 27% * categories are not dependent upon one another (i.e. someone can donate politically and not have given to their church) 82% of members contribute to a charity while 74% contribute to their church and/or religion both are on par with 2012 giving More than one-fourth contribute to political groups, which has fallen from 32% in

11 Question Q10 In w hich of the follow ing activities have you participated in the last 5 years, including the last presidential election in 2012? Outside of voting, the most popular politicallycharged activity is to contact a public official Activities Any of the activities Voted in a Presidential election Voted in a State or local election Contacted public official to voice opinion Contributed money to a candidate or political party Met with an elected official Participated in a political event or town meeting Contacted the media to make your views known on an issue Social Media to express opinions Volunteered with group to influence government Worked on candidate/party campaign 9% 6% 9% 7% 8% 9% 8% 7% % 15% 14% 13% 15% 24% 22% 12% 19% 16% 28% 24% 25% 36% 76% 77% 74% 79% 87% 87% 0% 40% 60% 80% 100% The majority of activities have seen a drop off over the past several years, including voting Using social media to express an opinion has logically shown some growth 11

12 Almost all members (83%) go online and most go online at least daily Question 17, 18, 19: Which of the items do you have? How often do you go online? How often do you use the internet for the follow ing? Interestingly, smart phones are one of the most popular devices owned by members 100% 95% 100% 75% 50% 25% 0% 92% 85% Any tech device Device Ownership 53% 52% 49% 37% Most Popular Online Activities 25% Smartphone Laptop Desktop Ipad/tablet E-Reader and getting news are most popular online activities for members 85% 85% 84% 84% 82% 80% 60% 40% 0% News/information Health/fitness info Directions Text message Make a purchase Comparative shop 17% of members never go online, which is down from in % of members own a smart phone, which is up from 31% in

13 Demographic Highlights 13

14 Age of membership has evolved significantly over the past several years 100% Members Age Breaks % 60% 40% 40% 37% 36% 36% 32% 30% 33% 28% 27% 38% 40% 44% 38% 22% 18% 0% age segment has grown almost since 2003 (70+ year olds by 10%) and at the same time the year old segment has fallen 36% 14

15 The percentage of members who are retired has increased in 2016 Question Q26: What is your current employment status and have you retired from a previous career? 100% Members Employment Status Working Retired Other* 80% 60% 40% 49% 49% 49% 49% 50% 38% 40% 42% 39% 40% 34% 56% 12% 10% 8% 12% 10% 10% 0% *other includes unemployed, homemakers, and other 56% of our members are retired, which has increased more than 10% in % of our members are currently working in some fashion 15

16 The education level of members has increased over the past several years Question 31: What is the highest level of education you have achieved? 100% Education Trends for Members 2016 Education Levels 80% HS Grad Or Less Tech/some college College Graduate Or More 21% 5% 25% 60% 40% 38% 38% 36% 32% 33% 33% 35% 35% 35% 33% 33% 36% 31% 33% 31% 33% 30% 29% 17% 25% 8% Some HS or Less HS Grad 0% Tech/Vocational School Some College Year College Grad Postgrad Work Only 5% of members have not graduated from HS 71% of members have at least some post HS education The percentage of members at least graduating from college has increased 23% since

17 Diverse populations have increased significantly (doubling from 10% to in past 10 years) Question 32/34: Are you of Spanish, Latino, or Hispanic origin? What race do you consider yourself? 100% 80% 60% 40% 0% Members Race/Ethnicity Status Non-White Hispanic Black/AA Asian Other These percentages equate to membership levels that far surpass membership levels of groups such as NAACP or LULAC AARP Membership level estimates: African Americans = 3,700,000 Hispanics = 1,800,000 Asians = 780,000 13% 14% 9% 10% 10% 8% 6% 7% 8% 8% 2% 5% 2% 3% 3% 5% 3% 3% 3% 3% 1% 1% 1% 2% 3% 3% 1% 2% 3%

18 The percentage of members who are married or living with a partner has declined since % 80% Members Who Are Married Or Living With Partner 2016 Marital Status 3% 1% 14% 7% 60% 61% 61% 59% 58% 59% 58% 54% 40% Married Widowed Separated Partner 0% Divorced Never Married % of members are married in % of members are single (widowed, divorced, separated, or never married) 2.4% of members identified as LGBT 18

19 Many members see themselves as moderate followed by conservative 100% Political Views 80% 60% 41% 40% 12% 24% 17% 7% 0% Very Conservative Somewhat Conservative Members are 50% more likely to see themselves as conservative when compared to liberal One fifth of members see themselves as liberal Moderate Somewhat Liberal Very Liberal 19

20 Summary and Insights 20

21 Key Insights and Highlights 1.Technology adoption continues to grow significantly and smartphones (53%) have become the most owned technology device among members 2.Minority audiences have grown significantly as a part of AARP membership Diverse audiences make up of membership (twice as high as the 10% figure ten years ago) there is still work to do as 25% of the 50+ population currently is multicultural 3.Members needs/wants have been relatively consistent over time with their concerns focused around health/financial security and their interests on healthy living and enjoying life 4.Challenging life events can consume Members schedules/priorities the top life events impacting members in the past two years are: Caregiving (38%), Reduction in income/savings (32%/29%), Death of family member or friend (31%), Chronic health issues (29%) 21

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