Parents and Grandparents Retirement Survey

Parents and Grandparents Retirement Survey

TABLE OF CONTENTS RESEARCH METHOD... KEY FINDINGS SURVEY RESULTS APPENDIX... 3 13 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 0 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.finra.org)/sipc (www.sipc.org).

Research Method WHO,018 American adults (half millennial parents, half grandparents with millennial children) WHAT Online Survey WHEN October 0-6, 0 Average time to complete survey: 18 minutes 9% Male 1% Female CONDUCTED BY Head Solutions Group on behalf of TD Ameritrade Holding Corporation 1 Throughout this report, arrows indicate a significant difference between millennial parents and grandparents. Callouts show significant differences between subgroups noted (i.e. Males and Females, or between Ethnicities) within Millennial Parents (shown in green callouts) or within Grandparents (in yellow), or between a subgroup and the total sample of Millennial Parents or Grandparents. West 0% Mid-Atlantic % Southwest 11% New England % South 6% Midwest % 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=,018 American adults within the target group is +/-.1 %. This means that in 19 out of 0 cases, survey results will differ by no more than.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. Assumes survey participants are the same as non participants. Note: Percentages may not add up to 100 due to rounding.

Key Findings Parents of both generations are saving for retirement (9 percent of millennial parents and 7 percent of grandparents), and would be willing to live a simpler lifestyle in order to help their retirement savings last longer. A third of millennial parents (33%) and grandparents (33%) saving for retirement are confident they will reach their retirement goals. Confidence increases with household income, especially among grandparents in 10 (6%) of those with a $100k+ household income are confident they will reach their retirement goals A significant number of millennial parents and grandparents have reached into their retirement savings to pay for emergencies and household bills. Four in 10 (0%) millennial parents, and nearly half (8%) of grandparents have withdrawn money from their retirement savings The top reasons for doing so are Emergencies (millennial parents: 0%, grandparents: %) and Household bills (millennial parents: %; grandparents: 17%) Millennial parents and grandparents are willing to make similar sacrifices to make their retirement savings last longer Half of millennial parents (9%) and grandparents (%) have or would be willing to live a simpler lifestyle, followed by spending less money (millennial parents: 8%, grandparents: 6%) and eating out less/cutting back on entertainment (6%, 9%) More grandparents (%) than millennial parents (39%) would be willing to buy a used car/keep a car for longer in order to make their retirement savings last longer For grandparents, retirement is not all about the money - they equate joy in retirement with time spent with loved ones Three in 10 (30%) say spending time with grandchildren will bring them joy in retirement and the same number indicate time with their spouse/partner will do the same. Two in 10 (1%) will find joy in travel

Most millennial parents (9%) are saving for retirement Seven in 10 (7%) grandparents are saving for retirement, including 7% of those who are married but only 61% of those who are single, separated or widowed. Twenty-seven percent of grandparents surveyed are currently retired. Which of the following, if any, are you currently saving for? %, in order of Millennial Parents % Millennial Parents Grandparents Owners: 67% Renters: 6% Married: 7% Single, Separated or Widowed : 61% Emergency fund Retirement Education for my children n/a 6 1 9 6 7 A down-payment on a home Education for myself My wedding/civil ceremony 3 3 8 13 18 3 Renters: 6% Female: % Male: % Female: 9% Male: 36% A vacation Gifts/holiday purchases Home improvements 7 7 3 1 Wedding/civil ceremony of my children Education for my grandchildren Wedding/civil ceremony of my grandchildren n/a n/a 1 9 0 Health or medical emergency 39 36 Some other specific purchase 10 A car/motor vehicle 3 8 Nothing in particular 17 0 0 0 60 80 0 0 0 60 80 Q00a. Base: All Millennial Parents n=1,00; All Grandparents n=1,01 Arrows indicate a significant difference between Millennial Parents and Grandparents at 9% confidence. Multiple responses allowed

Millennial parents who are saving for retirement have $79,000 saved, on average, whereas grandparents have $338,000 saved, on average Male millennial parents have more saved for retirement than female millennial parents ($9,000 vs. $61,000). The same pattern holds true for grandparents ($71,000 vs $00,000) Millennial parents with higher household incomes have been able to save more for retirement and for their children s education than millennial parents with a lower household income ($ values shown in chart below) In a typical month, how much money, if any, do you save towards the following? As of today, how much money do you have in savings for each of the following? Average (nearest $) Millennial Parents Grandparents Total Saved 00000 30000 300000 Female: $199,8 Male: $71,000 0000 00000 10000 100000 Female: $60,68 Male: $91,730 $78,66 H. Income: <$0k: $83,8 $0k-$99.9k:$3,980 $100k+:$,97 0000 0 % Don t know: H. Income: <$0k: $10,8 $0k-$99.9k:$,100 $100k+:$139,00 Retirement 3% 31% 3% 33% n/a n/a Q07-9. Base: All saving for retirement: Millennial Parents n=91; All Grandparents n=3; All saving for education for children: Millennial Parents, n=63, All saving for education for grandchildren: Grandparents n=06.

Household income is strongly related to typical monthly savings As one would expect, the amount saved in a typical month increases as household income increases for each category below. A millennial parent with a household income of $100,000 or more can save for retirement each month. times the amount that a parent with a household income of below $0,000 is able to ($880 vs $19). Grandparents in the highest income category ($100,000+) can save.9 times the amount the lower income Grandparents can ($1,00 vs. $00). In a typical month, how much money, if any, do you save towards the following? Average (nearest $) Monthly Savings Millennial Parents Grandparents 700 600 00 00 300 H. Income: <$0k: $19 $0k-$99.9k:$3 $100k+:$880 $1 $630 H. Income: <$0k: $00 $0k-$99.9k:$0 $100k+:$1,00 00 100 0 n/a Retirement Q0. Base: All saving for retirement: Millennial Parents n=91; All Grandparents n=3; All saving for education for children: Millennial Parents, n=63, All saving for education for grandchildren: Grandparents n=06, All saving for anything else: Millennial Parents n=1,00; All Grandparents n=1,01.

A third of millennial parents (33%) and grandparents (33%) saving for retirement are confident that they will reach their retirement savings goal Households with lower incomes are less confident in reaching their retirement savings goals. Only 1 in 6 (%) Grandparents with a household income of $0,000 or less is very confident they will reach their savings goal, and only 1 in (1%) Millennial Parents in the same income category feel similarly How confident are you that you will reach your savings goals for each of the following? % Retirement (Grandparents) Retirement (Millennial Parents) Education for my children (Millennial Parents) Education for my grandchildren (Grandparents) Not at all confident 7 1 11 3 3 1 3 1 3 6 6 1 1 1 3 19 13 1 17 11 1 1 18 6 7 8 9 10 17 1 11 1 9 8 6 Very confident 6 7 8 9 10 8 to 10: 33% 8 to 10: 33% H Income < $0k: 1% 6 7 8 9 10 8 to 10: 0% 6 7 8 9 10 8 to 10: 3% 1 1 11 H Income < $0k: % H Income: $100k+: 6% 1 Female: 7% Male: % Q06. Base: All saving for retirement: Millennial Parents n=91; All Grandparents n=3; All saving for education for children: Millennial Parents, n=63, All saving for education for grandchildren: Grandparents n=06 Arrows indicate a significant difference between Millennial Parents and Grandparents at 9% confidence

Four in 10 millennial parents (0%) and half (8%) of grandparents have had to withdraw money from their retirement savings to cover expenditures such as emergencies or household bills Have you ever withdrawn money from your retirement savings in order to pay for any of the following? % Millennial Parents Grandparents Emergencies 0 H Income: < $0k: 31% Household bills 17 H Income: < $0k: 6% H Income: < $0k: 0% Medical expenses Vacations 10 13 11 H Income: < $0k: 1% H Income: < $0k: % 0% of millennial parents and 8% of grandparents have withdrawn money Something else 8 Wedding No, I have never withdrawn money from my retirement savings 60 0 10 0 30 0 0 60 70 Q88. Base: All who save for retirement: Millennial Parents n=91; Grandparents n=3. Multiple responses allowed Arrows indicate a significant difference between Millennial Parents and Grandparents at 9% confidence

Half of millennial parents (9%) and grandparents (%) would be willing to live a simple lifestyle in order to help their retirement savings last longer More grandparents (%) than millennial parents (39%) would be willing to buy a used car/keep a car for longer Which of the following have you/would you be willing to do to help your retirement savings for further and/or last longer? % Top 7 actions performed/considered Millennial Parents Grandparents Living a simpler lifestyle Married:% Single:30% 9 Spending less money on myself 8 6 Eating out less/cutting back on entertainment 6 9 Buying a used car/keeping a car for longer 39 Retire at a later age than I'd like to Working Full-time: 7% 3 36 Find a better paid job 3 Having fewer vacations/travelling less 9 9 0 10 0 30 0 0 60 Q890. Base: All Millennial Parents n=1,00; All Grandparents n=1,01. Multiple responses allowed Arrows indicate a significant difference between Millennial Parents and Grandparents at 9% confidence

One in five grandparents (0%) have spent, or would be willing to spend, less on their children in order to make their own retirement savings last longer One in 7 (1%) millennial parents say they would have fewer children than they would like in order to make retirement savings last longer Which of the following have you/would you be willing to do to help your retirement savings for further and/or last longer? % Bottom 8 actions performed/considered Millennial Parents Grandparents Delay taking your social security payments Working Full-time: 0% 8 9 Having a smaller family home Working full or part time instead of being a stay-at-home parent Female: 30% Male:17% Female: % Male:17% 1 7 Take less money per month from your retirement savings 19 19 Have/had fewer children than I would have liked 1 Spending less money on my children 1 0 Providing less financial support to aging parents None of the above 9 1 0 10 1 0 30 3 Q890. Base: All Millennial Parents n=1,00; All Grandparents n=1,01. Multiple responses allowed Arrows indicate a significant difference between Millennial Parents and Grandparents at 9% confidence

Grandparents say that spending time with grandchildren or with their partner will bring the most joy in retirement There is a clear split between the genders: Males say that spending time with their partner will bring most enjoyment whereas Females say that spending time with grandchildren will bring most joy What brings/do you expect to bring you the most joy in retirement? % Grandparents Spending time with grand-children Female: 38% Male:% 30 Time with my spouse/partner Female: % Male:38% 30 Travel 1 Time for myself 13 Time with friends 1 Something else 0 10 1 0 30 3 Q90. Base: All Grandparents n=1,01

Appendix

Survey sample characteristics % Millennial Parents Grandparents Age 19 3 31 31 19 to to 9 30 to 3 3 to 37 0 to to 9 60 to 6 6 to 70 Region 1 7 3 11 11 1 18 Gender 0 0 7 3 New England Mid-Atlantic South Midwest Southwest West Male Female Education Marital Status 81 76 19 6 1 36 8 3 0 1 1 0 6 High school or less Technical degree Undergraduate college Graduate/Professional Prefer not to answer degree degree Single, never married Married/ Common law Separated/ Divorced Widowed Household Income Ethnicity 8 8 3 1 17 18 9 9 70 88 1 3 10 8 6 1 0 Less than $0k $0k-$7.9k $7k -$99.9k $100k + Don't know/ Prefer not to answer Caucasian Asian Latino or Hispanic African-American Others Prefer not to say Base: All Millennial Parents, n=1,00; Grandparents n=1,01