of savings A comparative analysis of retirement savings data by state based on information gathered from over 60,000 individuals who have used the VoyaCompareMe online tool.
Mapping the geography of retirement savings The internet is a powerful communication tool that consumers can use to overcome the boundaries of time and place to exchange information and ideas. Voya has learned that online tools like CompareMe.Voya.com can gather data that allows us to look at retirement behaviors and habits in new and insightful ways. Visitors can use Voya s CompareMe.Voya.com site to compare their own financial and retirement planning and saving habits with those of others who have also shared their information on this site. Seeing how their own situation compares begins with four simple inputs: age, household income range, gender and marital status. This robust tool also provides comparisons on savings, spending, investing, debt and planning status and habits. In addition to the amount that they have saved for retirement and how much they anticipate needing to live a comfortable retirement, more than 60,000 individuals have provided information on what U.S. state they live in. Voya has taken this data to help create this of Savings report. This Voya Retirement Research Institute report provides a state by state comparison on two specific measures of retirement savings and income: Savings Progress: Amount saved for retirement as a percent of total estimated need. This number also reflects adjustments based on age and number of savings years remaining to age 65. Savings Score: Amount residents have saved as a multiple of annual household income. Visit CompareMe.Voya.com to learn more about how your own financial habits compare to others like you. Comparison analysis begins with four simple inputs. Visitors can provide additional optional information by selecting Add to Your Profile. is one of the optional inputs that was used for this of Savings analysis. ii I
Data Sources & Calculations The of Savings was developed based on answers to the following questions in CompareMe.Voya.com: How much have you saved for retirement? Approximately how much do you think you will need to save to live the life you expect in retirement? Annual household Income (mid-point of selection ranges used; required answer to enter the site) Examples (Hypothetical): Savings Progress for ABC : 42% People who live in ABC state have saved 42% of what they estimate they will need for retirement (adjusted for age). Savings Score for ABC : 1.85 Residents of ABC state have saved, on average, 1.85 times their annual household income for retirement. National Averages: Savings Progress: Americans overall have saved 39% of what they estimate they ll need for retirement (adjusted for age). Savings Score: Americans have, on average, saved 2.42 times their annual household income. In light of today s state of retirement, where many individuals might need to fund significant portions of their own retirement income for 20 or more years, these Savings Scores are likely desirable only for younger investors. By the time an individual reaches retirement, having less than five times income in retirement savings could result in a significant decrease in income needed for retirement. New Mexico, with a score of 4.56, has the highest score of all the states. Savings Progress should be also considered relative to age. A younger investor who has saved a low percent of her estimated retirement need may have time to change her savings habits and behaviors to help close the gap. Top Ten s for Savings Progress Rank Savings Progress 1 Hawaii 51% 2 New York 49% 3 Nevada 48% 4 Washington 47% 5 South Carolina 46% 6 Kansas 43% 7 Oregon 43% 8 Montana 43% 9 Vermont 43% 10 Alaska 42% Top Ten s for Savings Score Rank Savings Score 1 New Mexico 4.56 2 Vermont 4.35 3 South Carolina 3.78 4 Maine 3.20 5 Arizona 2.99 6 New Hampshire 2.83 7 Nevada 2.77 8 Michigan 2.75 9 Minnesota 2.71 10 Florida 2.71 I 01
Other of Savings Comparisons Retirement Savings Starting Age The youngest retirement savers, starting at age 25, live in: Alaska Connecticut Delaware Iowa Massachusetts Minnesota Montana South Dakota Utah Using a Financial Professional Most Likely: Spend Some or a Lot of Time with a Financial Professional Vermont 57.14% New Hampshire 47.17% Idaho 44.44% Rhode Island 41.38% Nebraska 40.22% Investment Style Most Aggressive Investors: Aggressive Montana 47.62% Massachusetts 37.49% Utah 37.04% Washington 34.92% Hawaii 34.43% While the oldest, starting to save for retirement at age 30, live in: New Hampshire Maine Mississippi Nevada North Dakota West Virginia Least Likely: Spend Some or a Lot of Time with a Financial Professional Pennsylvania 26.64% Louisiana 26.62% North Dakota 22.50% Mississippi 21.43% Montana 20.00% Most Conservative Investors: Conservative North Dakota 29.23% South Dakota 25.71% New Mexico 25.00% Indiana 22.78% Florida 22.63% 02 I
Confidence in Spending Retirement doing Enjoyable Things and Activities Top Five: Bottom Five: Extremely or Very Confident South Dakota 69.57% Alaska 57.58% Rhode Island 55.36% Nevada 50.50% Utah 49.38% Extremely or Very Confident New Mexico 36.84% Mississippi 35.62% Montana 34.62% Idaho 34.29% Maine 31.03% Vacation is a Top Three Reason to Save Top Five: Top Reason to Save Alaska 50.00% Oregon 45.44% Hawaii 44.98% Maine 42.53% Nevada 41.63% Bottom Five: Top Reason to Save West Virginia 27.55% Delaware 25.64% Montana 25.53% South Dakota 22.86% North Dakota 22.58% www.ingofsavings.com Visit the Voya of Savings interactive site VoyaofSavings.Voya.com for further comparison information by state. I 03
Appendix: Full Lists Savings Progress is the amount saved for retirement as a percent of total estimated need. This number also reflects adjustments based on age and number of savings years remaining to age 65. For example: If Sam estimates he ll need $1 million for retirement, has current savings of $420,000, and is age 65, his Savings Progress is 42%. On the other hand, if Sam has the same estimated retirement need and current savings, but still has 50% (half) of his savings years ahead, his Savings Progress would be 84%. Rank Savings Progress 1 Hawaii 51% 2 New York 49% 3 Nevada 48% 4 Washington 47% 5 South Carolina 46% 6 Kansas 43% 7 Oregon 43% 8 Montana 43% 9 Vermont 43% 10 Alaska 42% 11 Michigan 41% 12 Ohio 41% 13 Maine 41% 14 Illinois 40% 15 New Hampshire 40% 16 Nebraska 40% 17 Texas 40% 18 Wyoming 39% 19 Rhode Island 39% 20 Colorado 39% 21 Minnesota 39% 22 California 39% 23 Missouri 38% 24 Louisiana 38% 25 Virginia 37% 26 Arizona 37% 27 Florida 37% 28 New Jersey 37% 29 North Carolina 37% Rank Savings Progress 30 Pennsylvania 37% 31 West Virginia 36% 32 Wisconsin 35% 33 Connecticut 35% 34 Tennessee 35% 35 Kentucky 35% 36 New Mexico 35% 37 Maryland 35% 38 Alabama 34% 39 Indiana 33% 40 Oklahoma 33% 41 Massachusetts 32% 42 Georgia 32% 43 Iowa 32% 44 Mississippi 32% 45 Idaho 32% 46 Delaware 29% 47 Arkansas 28% 48 North Dakota 28% 49 Utah 23% 50 South Dakota 19% 04 I
Savings Score is the average amount residents have saved for retirement as a multiple of their annual household income. For example: If Judy makes $50,000 a year and has $125,000 in retirement savings, her Savings Score is 2.50 ($125,000 / $50,000 = 2.50). Rank Savings Score 1 New Mexico 4.56 2 Vermont 4.35 3 South Carolina 3.78 4 Maine 3.20 5 Arizona 2.99 6 New Hampshire 2.83 7 Nevada 2.77 8 Michigan 2.75 9 Minnesota 2.71 10 Florida 2.71 11 Texas 2.70 12 Kansas 2.61 13 Connecticut 2.60 14 Missouri 2.55 15 Oregon 2.55 16 North Carolina 2.54 17 Virginia 2.53 18 California 2.51 19 Hawaii 2.50 20 Colorado 2.48 21 Illinois 2.47 22 Montana 2.45 23 Oklahoma 2.43 24 Arkansas 2.42 25 Washington 2.41 26 New Jersey 2.40 27 Tennessee 2.39 28 Idaho 2.36 29 Utah 2.33 Rank Savings Score 30 Wisconsin 2.32 31 Kentucky 2.31 32 Nebraska 2.29 33 New York 2.23 34 Ohio 2.21 35 Massachusetts 2.19 36 Louisiana 2.18 37 Indiana 2.18 38 Iowa 2.11 39 Georgia 2.10 40 Pennsylvania 2.04 41 Alaska 1.96 42 West Virginia 1.88 43 South Dakota 1.85 44 North Dakota 1.85 45 Alabama 1.84 46 Maryland 1.77 47 Wyoming 1.68 48 Mississippi 1.49 49 Rhode Island 1.47 50 Delaware 1.23 I 05
Investment Style by Conservative Moderate Aggressive Alabama 19.64% 55.80% 24.55% Alaska 12.31% 56.92% 30.77% Arizona 20.22% 58.20% 21.57% Arkansas 19.35% 50.32% 30.32% California 19.08% 52.35% 28.57% Colorado 13.65% 58.17% 28.19% Connecticut 12.20% 56.50% 31.30% Delaware 20.67% 48.00% 31.33% Florida 22.63% 53.76% 23.61% Georgia 17.00% 55.96% 27.04% Hawaii 15.16% 50.41% 34.43% Idaho 15.71% 56.43% 27.86% Illinois 17.98% 56.37% 25.65% Indiana 22.78% 48.16% 29.07% Iowa 17.24% 50.13% 32.63% Kansas 13.19% 55.77% 31.04% Kentucky 18.75% 52.50% 28.75% Louisiana 17.68% 57.46% 24.86% Maine 13.92% 54.43% 31.65% Maryland 16.17% 55.89% 27.94% Massachusetts 11.45% 51.07% 37.49% Michigan 15.91% 54.20% 29.88% Minnesota 13.08% 58.08% 28.85% Mississippi 20.14% 51.08% 28.78% Missouri 16.74% 53.48% 29.78% Conservative Moderate Aggressive Montana 14.29% 38.10% 47.62% Nebraska 14.11% 58.90% 26.99% Nevada 21.10% 55.50% 23.39% New Hampshire 14.29% 51.30% 34.42% New Jersey 17.26% 54.89% 27.85% New Mexico 25.00% 51.14% 23.86% New York 21.44% 53.20% 25.36% North Carolina 18.60% 54.14% 27.26% North Dakota 29.23% 46.15% 24.62% Ohio 17.06% 56.80% 26.13% Oklahoma 20.10% 56.86% 23.04% Oregon 11.91% 60.21% 27.87% Pennsylvania 19.04% 53.63% 27.33% Rhode Island 12.31% 54.62% 33.08% South Carolina 19.23% 53.85% 26.92% South Dakota 25.71% 60.00% 14.29% Tennessee 18.90% 55.96% 25.14% Texas 17.15% 53.23% 29.61% Utah 12.59% 50.37% 37.04% Vermont 13.89% 63.89% 22.22% Virginia 16.92% 55.53% 27.55% Washington 16.83% 48.25% 34.92% West Virginia 21.84% 58.62% 19.54% Wisconsin 15.92% 54.40% 29.68% Wyoming 20.83% 62.50% 16.67% 06 I
Explore Voya s My Savings Score website at VoyaOfSavings.voya.com/mysavingsscore for a quick way to score what you ve saved for retirement versus a simple savings estimate based on your age and income today. Additional copies of this report can be downloaded at the Voya Retirement Research Institute www.voyaretirementresearchinstitute.com. This paper has been prepared by the Voya Retirement Research Institute for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults, (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. The opinions, views and information expressed in this commentary are subject to change without notice based on market conditions and other factors. The information provided is not a recommendation to buy or sell any security. Products and services offered through the Voya Financial family of companies. 162173 3022497.X.G-2 2015 Voya Services Company. All rights reserved. CN0703-19869-0816 Voya.com