Singles & Money. Attitudes toward retirement, investing and financial security

Transcription

1 Singles & Money Attitudes toward retirement, investing and financial security

2 TABLE OF CONTENTS FINANCIAL SECURITY..... INVESTING RETIREMENT.. APPENDIX Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade s (Nasdaq: AMTD) technology, people, and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how-bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit the TD Ameritrade newsroom or for more information. Brokerage services provided by TD Ameritrade, Inc., member FINRA ( ( 2

3 Financial Security 3

4 More Americans than Americans feel very financially secure (43 vs 2) 43 of Americans feel very secure compared 2 of Americans Of those who feel very secure, men make up the majority for both and groups How financially secure do you feel, currently? Not at all secure 1 to 3: 11 Very secure 8 to 10: 43 Male: 4; Female: Not at all secure 1 to 3: 26 Very secure 8 to 10: 2 Male: 3; Female: 26 Q120. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61). Arrows indicate a significant difference between and at confidence 4

5 Why might Americans, on average, feel more financially secure than Americans? Higher home ownership, higher personal income, more education Americans are more likely than Americans to own their own home (0 vs. 8), have a higher average personal income ($61,700 vs. $2,00) and hold an undergraduate degree or higher (61 vs. 4), vs. Americans: Attributes related to financial security Home ownership Education Undergraduate degree or higher : 4 : Own home by myself/with spouse/partner Rent home by myself/with spouse/partner Rent home with roommates Others High School or less Technical degree or certificate Undergraduate Graduate Professional degree Personal Income Average Personal Income ($) Multiple questions. Base: All n=1,011; All n=1,008 Arrows indicate a significant difference between and at confidence

6 Americans have a higher personal income than Americans On average, Americans report a personal income of $61,700 compared to an income of $2,00 for Americans On average, Men earn approximately $k more than Women, while Men earn almost double what Women earn ($81,300, $43,00) Men with children have a higher average personal income than Men without children($84,000 vs. $70,00). For Women, those without children have a higher personal income than those with children ($2,100 vs.$44,200) Which of the following categories includes your total personal income, that is, the income from any wages, dividends, investments, and benefits, before taxes? 40 Male: 12; Female: 38 Male: $61,700; Female: $47, Average Personal Income : $2,00 : $61,700 Male: $81,300; Female: $43,00 0 Less than $2,000 per year $2,000 to $4, per year $0,000 to $74, per year 11 $7,000 to $, per year 7 10 $100,000 to $, per year 3 1 $10,000 or more I don t know I prefer not to answer this question 1 7 Average Personal Income Male w Children Male w/o Children Female w Children Female w/o Children M w/o Children $84,000 $70,00 (v. small base, n=86) $41,00 $48,800 $60,000 $62,400 $44,200 $2,100 F w/o Children Q60. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and (unless otherwise labelled) at confidence 6

7 Home ownership is lower among Americans than Nine in 10 (0) Americans own their home compared to 6 in 10 (8) Americans Which of the following best describes your current living situation? I own my home by myself/with spouse/partner I rent my home by myself/with spouse/partner I rent my home with roommates 2 8 I live in the home of a family member (other than my spouse) and pay rent/board 0 I live in the home of a family member (other than my spouse) and do not pay rent/board Q4. Base: All n=1,011; All n=1,008. Arrows indicate a significant difference between and at confidence 7

8 Three in 10 (2) Americans say the biggest financial benefit to not being married is having complete control over household finances Two in ten Americans (18) see having complete control over household finances as the biggest benefit to not getting married Two in ten Americans (17) think avoiding the risk of losing money in a divorce is the biggest financial benefit of not getting married Which of the following do you think is the single biggest financial benefit to not getting married? Having complete control over the household finances 18 2 No risk of losing money in a divorce 17 Male: 23; Female: Not needing to justify your expenditure to anybody Male: 11; Female: 17 Being able to dedicate yourself 100 to your work/earning money 8 11 Male: ; Female: 10 Simpler tax returns 6 Not having to pay for a wedding/engagement 3 None of the above Q200. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Arrows indicate a significant difference between and at confidence 8

9 Four in 10 working (40) and (37) Americans spend all of their paycheck each month, including a minority who are living paycheck to paycheck (13, 16 ) females are more likely than males to be living paycheck to paycheck (1, 11). Conversely, 4 in 10 (38) males say they never spend their entire paycheck and always have money left to save compared to 2 in 10 (22) females Which of the following statements best describes how much money you have left from your paycheck for savings? 2 13 Living paycheck to paycheck OR usually spend entire paycheck : 40 : Male: 11; Female: 1 I am living paycheck to paycheck; I spend my entire paycheck and there is never any money left to save Usually I spend my entire paycheck but sometimes I have money left over to save 3 23 Male: 38; Female: Male: 18; Female: 2 Usually I do not spend my entire paycheck and usually I have money left over to save I never spend my entire paycheck and always have money left to save Q10. Base: All who are working:, n=3, n=07 Arrows indicate a significant difference between and at confidence

10 Four in 10 (3) Americans and almost 3 in 10 (27) Americans have established an emergency fund to prevent financial disruption Americans are less likely to have established an emergency fund Males are more likely than Females to report having established an emergency fund (46, 33) Which of the following preparations have you taken to help prevent unexpected events/situations from disrupting your long-term financial plans? 60 Expected number of months fund would last for (average): : 13.3 : Male: 16; Female: 11 Male: 3; Female: Male: 46; Female: 33 Established an emergency fund Purchased long-term care insurance Purchased accident/disability insurance 11 Established a second income stream 1 Male: 2; Female: 7 I went back to work after a maternity/paternity leave/being a stay-at-home parent None of the above Q10. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Arrows indicate a significant difference between and at confidence 10

11 Four in 10 (38) and Americans (37) say the average American would not be surprised about their spending and saving habits Females are more likely than males to think their spending habits are typical. Four in 10 (40) Females and Females (41) think this way compared to one third (34) of Males and Males (33) What do you think the average American would think of your spending and saving habits? He or she would be Not surprised/thinking it was typical Male: 34; Female: 40 Male: 33; Female: 41 Impressed Worried Wanting to copy your spending and saving strategies Male: 28; Female: 21 Male: 17; Female: Male: 26; Female: 17 Horrified Confused 7 6 None of the above Q160. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and at confidence 11

12 Four in 10 Americans married (41) or not (40) would not be willing to cut back on eating out if times became hard and they had to reduce spending Almost 4 in 10 (38) Americans would not want to forego vacations either If times became hard for you and you had to reduce your spending, which items on the list below would you not be willing to cut back on? Eating out Designer shoes or clothes Vacations Specialty food items (e.g. Tapas, Avocado toast, Macaroons) 12 Take-out 18 2 Sports tickets/equipment/fees Coffee Gym/sports club membership 12 1 Car/vehicle payments 23 2 Housekeeper/maid service Beer/wine/spirits Electronics Male: 28; Female: 1 Male: 23; Female: 18 Uber/Lyft/taxicabs Meal kit delivery service Spa/salon services/make-up 16 1 Male: 10; Female: 20 Male: 1; Female: 22 None of the above Q170. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and at confidence 12

13 Investing CONFIDENTIAL NOT FOR RELEASE 13

14 More Americans (26) than Americans (16) believe they are very knowledgeable about the stock market and investing In both groups, men are significantly more confident than women about their knowledge of the stock market and investing. Females have the least confidence in their stock market and investing knowledge ( Males: 37 ; Females: 17 ; Males: 2 ; Females: 11) How knowledgeable are you about the stock market and investing? Not at all knowledgeable 1 to 3: Very knowledgeable 8 to 10: 26 Male: 37; Female: Not at all knowledgeable 1 to 3: 40 Very knowledgeable 8 to 10: 16 Male: 2; Female: 11 Q100. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61); Arrows indicate a significant difference between and at confidence

15 Four in 10 Americans (42) and a third (34) of Americans who are saving have automatic contributions into their investment accounts Three in 10 (32) Americans and over a third (3) of Americans who are saving for something have automatic contributions deposited into their savings account Do you have automatic contributions or deductions into your savings or investment accounts? Male: 40; Female: 30 Male: 38; Female: 48 Yes, into my savings account(s) Yes, into my investment account(s) No, I have no automatic contributions or deductions Yes, into my savings account(s) Yes, into my investment account(s) No, I have no automatic contributions or deductions Q0. Base: All who are saving for something:, n=842, n=718 Arrows indicate a significant difference between and at confidence 1

16 Americans save or invest, on average, 1.6 of their take-home pay for any purpose, while Americans save or invest 11.7 Nearly half (48) of Americans do not save or invest a percentage of their take-home pay. In a typical month, what percentage of your take-home pay (that is, your income after taxes and deductions), do you save or invest, in total? 0 or less More than, up to 10 More than 10, up to 20 More than 20, up to 0 0 or more Male: 4; Female: Average saved Male: 13.7; Female: Any saving Male: 44; Female: 2 Male: ; Female: 2 Q13. Base: All, excluding don t know, n=6; All n=722. Data shown is a sum of the individual figures provided at Q13 for of take home pay saved for various sources (e.g. retirement, education, wedding, downpayments etc) and includes, with values of 0, respondents who are not saving for anything (and were not asked Q13). Respondents who answered don t know for any savings purpose at Q13 have been excluded. Arrows indicate a significant difference between and at confidence 16

17 Retirement 17

18 4 in 10 (44) Americans are saving or investing for retirement while over 6 in 10 (63) Americans are Three in ten (2) Americans are not currently saving or investing for anything men are more likely than women to be saving for retirement (4, 41) Which of the following, if any, are you currently saving or investing for? 80 Male: 4 Female: Male: 37 Female: Retirement A down-payment on a home 0 My wedding/civil ceremony 0 Education of my children/grandchildren 1 Wedding/civil ceremony of my children/grandchildren 4 Other saving, in general, or for specific purchases I am not currently saving or investing for anything All with children: 11 All with children: 21 Q130. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and at confidence 18

19 A third of (33) and 2 in 10 (23) Americans define themselves as Super savers who are on-track with their retirement savings Men, married and unmarried, are more likely than women to place themselves in the Super saver category ( Males: 2, Females: 18) Almost 3 in 10 (28) and 2 in 10 (21) Americans say they expect to scrape by (i.e. be ok in retirement but no extras). Few Americans report being completely unprepared for retirement (: 6, : 11) Of the following types of retirement saver, which are you? Super saver: Retirement saving is my top financial priority and I m completely on -track Male: 38 Female: Male: 2 Female: 18 Others come first: I put the needs of family members/friends above my own and save for my retirement when I am financially able I ll deal with it later: I m more focused on enjoying my life now while I m healthy and alive Completely unprepared: I haven t saved and likely will never be able to retire I ll scrape by: I ll do whatever s necessary to be ok in retirement, but won t have any extras None of the above Q36. Base: All who are not fully retired, n=718, n=678; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and at confidence 1

20 Half (2) of Americans expect to be very secure financially in retirement In contrast, only about a third (34) of share the expectation of being very secure financially in retirement How financially secure are you, or do you expect to be, in your retirement? Not at all secure 1 to 3: Very secure 8 to 10: Not at all secure Very secure 1 to 3: 23 8 to 10: 34 Male: 3 Female: 30 Q300. Base: All n=1,011; All n=1,008; Arrows indicate a significant difference between and at confidence 20

21 A third (36) of Americans want to fully retire but anticipate they will not be able to afford to Only 4 in 10 (37) Americans who are not retired share the same expectation, while over a third (36) want to fully retire but anticipate they will not be able to afford to. A quarter (24) of Americans don t want to fully retire because they love working or want to work. Which of the following best describes your expectations about if you will fully retire? I expect to fully retire I want to fully retire but I will not be able to afford to I don t want to fully retire because I love working/want to work Average expected age of full retirement (if expecting to fully retire) : 64. : Male: 4 Female: Q31. Base: All who are not fully retired, n=718, n=678 Arrows indicate a significant difference between and at confidence 21

22 About half of Americans unmarried and married - worry about their health care expenses, followed by their spouse s health and running out of money Americans are more worried about running out of money in retirement than Americans (46 vs. 38). When it comes to retirement, which of these are you worried about, even if it is a nagging worry/is at the back of your mind?, in descending order for Health care expenses My health My spouse s health Running out of money Long-term care needs and expenses Social security going away Being bored Supporting adult children Not receiving the pension I m counting on Not having a reason to get up in the morning Supporting aging parents Supporting grandchildren None of the above Male: 43 Female: 48 Male: 32; Female: 43 Male: 33; Female: 44 Male: 2; Female: 42 Q370. Base: All n=1,011; All n=1,008; Males (n=471), Females (n=40); Males (n=38), Females (n=61) Arrows indicate a significant difference between and at confidence 22

23 How are the third of Americans who expect to be financially secure in retirement different to other Americans? Higher home ownership, higher income, higher education, knowledge of stock market Americans who expect to be very financially secure in their retirement are more likely than other Americans to own their own home (74 vs. 0), have a higher average personal income ($73,300 vs. $42,600), be educated to an undergraduate degree level or higher (6 vs. 48), and to consider themselves very knowledgeable about the stock market and investing (3 vs 6) Financially Secure in Retirement or Not? Attributes related to financial security Home ownership Expect to be Secure in Retirement Do not Expect to be Secure in Retirement Education Undergraduate degree or higher 24 Expect to be Secure: 6 Do no Expect to be Secure: Own home by myself/with spouse/partner Rent home by myself/with spouse/partner Rent home with roommates Others High School or less Technical degree or certificate Undergraduate Graduate Professional degree Personal Income (Average) Knowledge of Stock Market and Investing ( Top 3 Box) Average Personal Income ($) 6 Knowledge of Stock Market Multiple questions. Base: All who are/expect to be very financially secure in retirement (n=38); All who do not expect to be very financially secure in retrement (n=70) Arrows indicate a significant difference between and at confidence 23

24 In a typical month, and Americans saving for retirement save approximately 1/6th of their take-home pay (.6, 16.4 ) Both and Americans saving for general purposes (not retirement, education or marriage) are saving, on average, of their take-home pay for this purpose In a typical month, what percentage of your take-home pay (that is, your income after taxes and deductions), do you save or invest for the following purposes? 0 or less More than, up to 10 More than 10, up to 20 More than 20, up to 0 0 or more Average saved Retirement All who are currently saving for retirement and could give an answer could not provide a and have been excluded from these figures could not provide a and have been excluded from these figures General saving (not for retirement, education or marriage) All who are currently saving for general saving and could give an answer Male: 11; Female: could not provide a and have been excluded from these figures could not provide a and have been excluded from these figures Q13. Base: All who are currently saving for retirement and could give an answer, n=40; n=26; All who are currently saving for general saving and could give an answer, n=266; n=261. The base sizes for other savings purposes (e.g. Education, downpayments and weddings are too small to investigate further) Arrows indicate a significant difference between and at confidence 24

25 Americans are saving $70 monthly, on average, compared to $740 for Americans a difference of more than $200 per month Three in 10 (31) men are saving $1,000 or more per month compared to under 2 in 10 (18) women. For the, one-quarter (2) of men are saving $1,000 or more per month compared to under 1 in 10 () women Males save more than Females ($1,12 vs. $82) and Males than Females ($1,10 vs. $46) In a typical month, how much do you personally save for retirement? Male: 16 Female: Male: 22 Female: 34 Male: 2 Female: 2 Male: 31 Female: Male: 11 Female: $100 or less $101 to $20 $21 to $00 $01 to $1,000 $1,000 or more Monthly Savings Average $70 $740 Male: $1,12; Female: $82 Male: $1,10; Female: $46 Q131. Base: All who are currently saving for retirement: n=631, n=440 Arrows indicate a significant difference between and at confidence 2

26 Three in 10 (2) unretired Americans are looking forward to not having to go to work as a retiree. Not working is appealing to only 2 in 10 unretired Americans Traveling equally holds great appeal in retirement for almost 3 in 10 (28) and American 16 of Americans are not looking forward to retirement compared to 10 of Americans What are you looking forward to the most as a retiree? Not having to go to work Traveling 21 2 Male: 27; Female: Spending more time on my hobbies 8 11 Spending time with children/grandchildren 7 10 Male: 2; Female: 10 Spending time with friends 1 4 Spending more time with my spouse n/a 17 Something else 4 I am not looking forward to retirement Q30. Base: All who are not retired, n=663, All, n=638; Males (n=471), Females (n=40) Arrows indicate a significant difference between and at confidence 26

27 Three in 10 Americans (32) and (32) believe they are moreor-less on track with their retirement savings Over 4 in 10 (43) Americans say they are behind and 2 in 10 (1) say they are ahead with their retirement savings goals A third (34) of Americans report being behind and 3 in 10 (2) say they are ahead with their retirement savings goals Are you ahead, behind, or on track with your retirement savings? Very much ahead Slightly ahead More-or-less on track Slightly behind Very behind Don't know/don't track Behind (very/slightly) : 34 : 43 Male: 36 Female: 48 Male: 2 Female: Ahead (very/slightly) : 2 Male: 27 : 1 Female: 13 Q330. Base: All who are saving for retirement, n=633; All n=441 Arrows indicate a significant difference between and at confidence 27

28 Both Americans and Americans who are currently saving for retirement started saving at age 32, on average At what age did you start saving for retirement? 40 Average age: : 32.0 : 31.7 Male: 30.8; Female: or younger 1 to 24 2 to 2 30 to 34 3 to 3 40 to 44 4 to 4 0 to 4 or older Q310. Base: All who are saving for retirement, n=633; All n=441 Arrows indicate a significant difference between and at confidence 28

29 Most Americans saving for retirement say they have never borrowed money from their 401 (k) Seven in 10 (70) Americans and under 7 in 10 (66) Americans say they have never borrowed money from their 401 (k) Two in 10 (1) and Americans say they have borrowed from their 401 (k) Have you ever borrowed money from your 401 (k)? Yes No I do not have a 401 (k) Q33. Base: All who are saving for retirement, n=633; All n=441 Arrows indicate a significant difference between and at confidence 2

30 Appendix 30

31 Research Method WHO 2,01 Americans aged 37 or older (half and half ) WHAT Online Survey WHEN August 11 to 1, 2017 Average time to complete survey: 20 minutes 41 Gen X 4 Boomers 10 Silent Gen. CONDUCTED BY Head Solutions Group on behalf of TD Ameritrade Holding Corporation 1 Americans includes Americans who are Single, never married (n=46). Wiidowed (n=204) and Divorced (n=308) West Southwest South Throughout this report, arrows indicate a significant difference between and Americans. Yellow callouts show significant differences within Americans and green callouts show significant differences within Americans. Where the report refers to 10 Leading Cities it means Boston, Chicago, Dallas, Denver, Miami, Minneapolis, New York, San Francisco, Seattle and Washington DC. 17 Mid-Atlantic New England 6 26 Midwest 23 This survey was conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation 1 The statistical margin of error for the total sample of N=2,01 American adults within the target group is +/ This means that in 1 out of 20 cases, survey results will differ by no more than 2.1 percentage points in either direction from what would have been obtained by the opinions of all target group members in the U.S. Sample was drawn from major regions in proportion to the U.S. Census 1 Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other s products and services 2 Assumes survey participants are the same as non participants Note: Percentages may not add up to 100 due to rounding. 31