Paying for the New Retirement: Responsibilities and ...€¦ · Paying for the New Retirement:...

iPaying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers | July 2016

Paying for the New Retirement: Responsibilities and Challenges

for Middle-Income Boomers By Bankers Life Center for a Secure Retirement

July 2016

168600

Table of contents

3 Methodology and definitions

5 Introduction

6 Key findings

9 Challenges in the new retirement

15 Boomers’ retirement knowledge and preparedness

23 Consequences of an unprepared retirement

31 Recommendations for middle-income Boomers

32 About the Center for a Secure Retirement

2 Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers | July 2016

Methodology and definitions

3Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers | July 2016 3

Methodology and definitions

This study from the Bankers Life Center for a Secure Retirement—Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers—was conducted in March 2016 by the independent research firm The Blackstone Group.

The internet-based survey consisted of a nationwide sample of 1,001 middle-income Americans age 52 to 75; Boomers age 52 to 70 made up 893 of the sample. Quotas were established based on the U.S. Census Current Population Survey data for age, gender and income to obtain a nationally representative sample. The margin of error is +/- 3.1 percentage points at the 95% confidence level.

Multiple answers were accepted on some questions; results on these questions sum to greater than 100%.

For the purposes of this study, the Bankers Life Center for a Secure Retirement used the following definitions:

What is middle income? Middle-income Americans have an annual household income between $25,000 and $100,000 and have less than $1 million in investable assets.

Who is a Boomer? Boomers are Americans born between 1946 and 1964 and are 52 to 70 years old in 2016.

Who is retired?Respondents to the survey self-identified as retired or nonretired, regardless of their work status.


Introduction


Today, about four in 10 (39%) members of the Boomer generation identify themselves as retired. As Boomers are a large and dynamic generation, the Bankers Life Center for a Secure Retirement is checking in with middle-income Boomers to see how retirement is unfolding for this generation.

This generation is on the leading edge of the “new retirement”—the transition from institutional responsibility for retirement financial security to an increasing amount of individual responsibility.

However, we found that most Boomers have not done enough to adequately prepare for their retirement years. In fact, seven in 10 (69%) Boomers admit that they do not have or do not know if they have the financial resources to live comfortably in retirement to age 85, the average life expectancy of a 65-year-old Boomer today. And that number climbs to eight in 10 (83%) who admit that they do not have or do not know if they have the financial resources to live in retirement to age 95 even though 10% of Boomers will live to at least that age.*

Boomers are making adjustments to meet the new financial challenges they are facing in retirement. The Boomer experience may provide a cautionary tale for generations to follow. More education, more advice and guidance, and ultimately more retirement savings will be necessary for middle-income Americans to live comfortably in their retirement years.

Introduction

*U.S. Social Security Administration, “Calculators: Life Expectancy,” Accessed May 5, 2016. https://www.ssa.gov/planners/lifeexpectancy.htmllifeexpectancy.html

Retirement status ofmiddle-income Boomers

Source: Bankers Life Center for a Secure Retirement, Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers, 2016.

n=893

39%Retired

61%Not retired


Key findings

Five years since the first Boomer turned age 65, middle-income Boomers report experiencing financial challenges.■■ Six in 10 (60%) nonretired middle-income Boomers report they are spending as

much or more than their household income.

■■ Four in 10 (38%) retired middle-income Boomers have had to make adjustments to compensate for a financial shortfall in retirement.

Boomers are in the middle of a retirement transition, as fewer employers provide their workers with a lifetime defined benefit pension payout.■■ Half (48%) of retired middle-income Boomers will include a regular pension payment from

an employer as part of their retirement income. Of Boomers not yet retired, only one-third (33%) indicate they will benefit from a regular pension payment from an employer.

■■ Eight in 10 (80%) retired middle-income Boomers rely on Social Security or an employer pension to be their primary source of retirement income, while just one in 10 (12%) rely on retirement accounts, savings or employment as their primary source of retirement income.

Highlights

■■ Five years since the first Boomer turned age 65, middle-income Boomers report experiencing financial challenges.

■■ Boomers are in the middle of a retirement transition, as fewer employers provide their workers with a lifetime defined benefit pension payout.

■■ Middle-income Boomers say they are knowledgeable about and familiar with their retirement options, but they are not actively using this knowledge.

■■ Middle-income Boomers are not confident in their retirement finances and are unsure of the best ways to maximize their retirement income.

■■ Middle-income Boomers continue to carry significant debt into retirement.


Middle-income Boomers say they are knowledgeable about and familiar with their retirement options, but they are not actively using this knowledge.■■ More than eight in 10 (84%) middle-income Boomers consider themselves to be at

least somewhat financially literate, with nearly one-half (47%) who feel they have a strong understanding of financial matters.

■■ Aside from making retirement account or savings contributions, only six in 10 (61%) middle-income Boomers have taken at least one additional active retirement planning step. Nine in 10 (91%) do not have a written retirement plan.

Middle-income Boomers are not confident in their retirement finances and are unsure of the best ways to maximize their retirement income.■■ Nearly nine in 10 (88%) middle-income Boomers express at least one concern

about their retirement, including government decisions on budgets and spending (64%), declining health (56%), not having enough money to pursue their interests (52%) and lack of savings (50%).

■■ Seven in 10 (69%) Boomers do not believe or do not know if they have enough money to live comfortably to age 85.

■■ Seven in 10 (72%) retired middle-income Boomers say they were not financially prepared when they retired. One in 10 (14%) say they were not financially prepared at all.

■■ Among middle-income Boomers who know when they will begin collecting Social Security, three-quarters (78%) say that they will wait to age 65 to start collecting these benefits. However, in reality, only about four in 10 (38%) do.

Middle-income Boomers continue to carry significant debt into retirement.■■ Eight in 10 middle-income Boomers (81%) currently have some debt.

■■ Three in 10 (28%) middle-income Boomers say that they devote more than 40% of their monthly income to debt.

■■ One-quarter (23%) of middle-income Boomers have a mortgage with more than 20 years remaining on it.

■■ While half (53%) of nonretired middle-income Boomers say they intend to enter retirement debt free, only one-quarter (23%) of retirees actually are debt free.

9Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers | July 2016

Challenges in the new retirement

The Boomer generation—estimated at 74.9 million Americans age 52 to 70 in 2015—is in the midst of a significant transition to retirement. Among middle-income Boomers, currently four in 10 (39%) describe themselves as retired with more retiring every day.

However, many in this generation are experiencing financial challenges as they approach and enter retirement.

Six in 10 (60%) nonretired middle-income Boomers report they are spending as much or more than their household income, possbily making it difficult to build their retirement savings. Of those who are spending more than their income, more than half (55%) say that it is because of bills, debt, loans or other household expenses. About one in six say that it is because of health or medical issues (15%), employment status (15%) or simply low income (13%).

Household spending versus incomeAmong nonretired middle-income Boomers


n=545

60% are spendingabout the sameor more thantheir householdincome

12%I spent more

than my income

I spent aboutthe same

as my income

I spent muchless than

my income

I don’t know

48%

37%

3%


Retired Boomers already facing shortfalls in retirement financesRetired middle-income Boomers also report financial challenges. Four in 10 (38%) have already had to make adjustments to compensate for a financial shortfall in retirement. Of these retired middle-income Boomers that have faced a financial shortfall, nearly nine in 10 (88%) cut expenses, three in 10 (30%) sold possessions, two in 10 (20%) decided to work for pay and one in six (15%) had to ask family or friends for help. Nearly one in 10 (7%) have had to sell or remortgage their house.

10

Retired middle-income Boomers who have made adjustments

because of a �nancial shortfall

88%Cut expenses

n=348

Compensating for a �nancial shortfall in retirement

n=133


Yes38%

No62%

Sell possessions

Work for pay

Ask family or friendsfor finanical assistance

Invest more aggressively

Sell or remortgage house

Move in with family or friend

Other

30%

20%

15%

8%

7%

5%

8%

Adjustments made by retired middle-income Boomers to

compensate for a �nancial shortfall


Retirement in transitionThese financial challenges come at a time when Boomers are experiencing the realities of the transition to the “new retirement.” When they entered the workforce, Boomers worked for employers who took on much of the burden of retirement income for their employees by providing a lifetime defined benefit pension payout. However, as Boomers moved closer to retirement, many employers ended those programs in favor of defined contribution retirement plans, such as 401(k) plans, IRAs and annuities. This shift places more of the burden and responsibility for creating retirement financial security on the individual employee.

This transition is evident in the Boomer generation today. Half (48%) of retired middle-income Boomers receive a regular pension payment from an employer as part of their retirement income. These retired Boomers are significantly more likely to be age 60 or older. Conversely among Boomers not yet retired—who are significantly more likely to be younger than age 60—only one-third (33%) indicate they expect to receive a regular pension payment from an employer.

Middle-income boomers who receive or will receive an employer pension in retirement


Retired

48%

33%

Nonretired

n=348 n=545


Many middle-income Boomers rely primarily on Social Security and employer pensionsToday, because fewer middle-income Boomers will be able to rely on pensions as a guaranteed lifetime source of income, they will need to depend more on personal savings and other sources of income.

However, eight in 10 (80%) retired middle-income Boomers rely on Social Security or an employer pension to be their primary source of retirement income, while just one in 10 (12%) rely on personal investments, savings or employment as their primary source of retirement income.


n=348

Primary sources of retirement incomeAmong retired middle-income Boomers

80%rely primarily ongovernment or employer

Social Security benefits 51%

A regular pension paymentfrom an employer 29%

Retirement accounts (such as 401(k) plans,IRAs or annuities) 7%

General savings and investments 4%

Employment earnings 1%

Money from an inheritanceor family support 1%

Other or not sure 7%

12%rely primarily onpersonal investments,savings or employment


Social Security a primary source of retirement income for many BoomersAmong retired middle-income Boomers, more than eight in 10 (84%) say that Social Security benefits make up at least a part of their retirement income, while half (51%) say that it is their primary source of retirement income.

However, Social Security was never intended to be the primary source of one’s retirement income, and benefit amounts may not be enough to sustain a lifestyle retired Boomers may envision.

According to the Social Security Administration, the average personal benefit is $1,708 per month, or about $20,000 per year.i

Among Americans who receive Social Security benefits, excluding disability benefits, nearly nine in 10 (88%) receive a yearly personal benefit of less than $24,000 per year. About one-third (31%) receive a yearly personal benefit of less than $12,000, barely above the $11,000 federal poverty line for individuals.ii

Average Social Security bene�tsAmong Americans who receive Social Security benefits, excluding disability benefits

Source: Calculated from data in U.S. Social Security Administration, Annual Statistical Supplement, 2015. Released April 2016, https://www.ssa.gov/poli-cy/docs/statcomps/supplement/2015/5b.pdf.

88% recieve less than$24,000 per year

12%

More than$24,000 per year

57%

Between$12,000 and

$24,000 per year

Less than$12,000per year

31%


Boomers’ retirement knowledge and preparedness

More than eight in 10 (84%) middle-income Boomers consider themselves to be at least somewhat financially literate. Nearly one half (47%) feel they have a strong understanding of financial matters.

In addition, most middle-income Boomers say they are aware of the most common types of retirement accounts. Three-quarters (74%) of middle-income Boomers say they are confident in their understanding of 401(k) accounts with about two-thirds who say they are confident in IRAs (68%) and pensions (65%). But only about half are confident in their understanding of annuities (51%) and Roth IRAs (48%).

Middle-income Boomers’ assessmentof their �nancial literacy


n=893

84% considerthemselves atleast somewhatfinancially literate

14%

33%

37%

13%

3%

5Veryliterate

1Not at all

literate

4

3

2

Middle-income Boomers who are con�dent that they understand the most common types of retirement accounts


n=893

401(k)

74%

IRA Pension/defined benefit

Annuity Roth IRA

68% 65%

51% 48%


Not enough retirement planningBeyond simply contributing to a 401(k) or other retirement account, financial security in retirement depends on taking a number of active planning steps. Despite their stated familiarity with common types of retirement accounts, middle-income Boomers are not yet doing enough to plan for their own retirement.

Only six in 10 (61%) middle-income Boomers—including those who have already retired—have done any active retirement planning beyond contributions to a retirement or savings account. Nine in 10 (91%) do not have a written retirement plan.

Three-quarters (75%) of middle-income Boomers have not calculated a monthly retirement income number goal that they need to reach.

Eight in 10 (79%) middle-income Boomers do not know what percentage of their pre-retirement income they feel comfortable living on in retirement.


Methods used for �nancial planning for retirementAmong retired and nonretired middle-income Boomers

n=893

Taken at leastone retirementplanning step

39%

61%

Calculateda monthlyretirement income goal

75%

25%

Calculateda percentage ofpre-retirementincome to live

on in retirement

79%

21%

Worked witha financial

professional

80%

20%

Calculatedan account

balance goal

88%

12%

Developed a writtenretirement

plan

91%

9%

No Yes

Taken allretirementplanning

steps

99%

1%


One-third are starting lateNearly one-third (32%) of middle-income Boomers who have taken at least one retirement planning step did not start planning until after age 50. Six in 10 (58%) started planning after age 40.

When middle-income Boomers started retirement planningAmong those who have taken at least one retirement planning step


n=506

<20

3%

20–29 30–39 40–49 50–59 60 orolder

15%

24%26% 27%

5%

32% start planningafter age 50


Planning early makes a differenceMiddle-income Boomers who started retirement planning before age 30 are more likely to have higher levels of investable assets than those who started after age 50.

More than one in 10 (13%) middle-income Boomers who started retirement planning before age 30 reported investable assets between $500,000 and $1 million, compared to just one in 20 (6%) of those who started planning after age 50.

On the other hand, less than four in 10 (37%) middle-income Boomers who started retirement planning before age 30 reported investable assets less than $100,000, compared to nearly two-thirds (63%) of those who started planning after age 50.

n=162

Middle-income Boomers’ investable assets

Among those who started retirementplanning before age 30

Among those who started retirementplanning at age 50 or older


n=88

Between $500,000 and

$1 million13%

Less than$100,000

37%


$500,000 51%

Less than$100,000

63%


$500,000 31%


$1 million6%


Retirement and investment concernsNearly nine in 10 (88%) middle-income Boomers expressed at least one concern about retirement, and nearly half (47%) say that they think about their retirement finances frequently or all the time.

Retirement issues middle-income Boomers report being concerned about include:

■■ Decisions made by the federal government regarding budgets and spending (64%)

■■ Declining health (56%)

■■ Not having enough money to do the things they want to do (52%)

■■ Not having enough money saved (50%)

■■ Not being able to afford health care expenses (48%)

■■ Investments not keeping up with inflation (45%)

■■ Outliving their money (43%)

■■ Not being able to retire (42%)

■■ Not having enough energy to do the things they want to do (41%)

■■ Low interest rates or low market return on their investments (40%)

How often middle-income Boomers think about retirement �nances


n=893

Never

3%

Rarely Sometimes Frequently Almost allthe time

13%

36%

32%

15%

47% Think about retirementfinances frequently or

almost all the time

Middle-income Boomerswho are concerned aboutretirement-related issues


n=893

12%Not

concernedabout any

88%Concerned

about one ormore issues


Middle-income Boomers lack confidence in their financesMore than two-thirds (68%) of middle-income Boomers rate their current financial well-being as average or worse.

How middle-income Boomers rate their current �nancial well-being


n=893

68% rate theirfinancialwell-being asaverage or worse

6%

26%

45%

16%

7%

5Excellent

1Very poor

4

3

2


Unsure whether they will have enough money for retirementOn average, Boomers today can expect to live to around age 85, according to the Social Security Administration.iii

However, seven in 10 (69%) Boomers do not believe or do not know if they have enough money to live comfortably to age 85, and more than eight in 10 (83%) do not believe or do not know if they have enough money to live comfortably to age 95, even though one in 10 Boomers can expect to live this long.

n=893

Middle-income Boomers’ outlook on �nancial security and longevity

Con�dence in �nancial security to age 85 Con�dence in �nancial security to age 95


31%Not sure

31%Yes

38%No

69%Are not sure

they haveenough money

to live to age 85

17%Yes

51%No

32%Not Sure83%

Are not surethey have

enough moneyto live to age 95


Consequences of an Unprepared Retirement

Seven in 10 (72%) retired middle-income Boomers say there were not financially prepared when they retired. One in 10 (14%) say they were not at all financially prepared.

But simply considering oneself financially prepared at retirement is not foolproof. Ongoing evaluation and maintenance are required throughout one’s retirement years.

Even among retired middle-income Boomers who said they were financially prepared for retirement, about one-quarter (23%) said they still had to make adjustments to their spending to compensate for a financial shortfall.

Financial preparation for retirementAmong retired middle-income Boomers


n=348

72% say they werenot financiallyprepared forretirement

9%

29%

33%

15%

14%

5Veryprepared

1Not at allprepared

4

3

2

Compensating for a retirement shortfallAmong retired middle-income Boomers who said they were financially prepared for retirement


n=133

23%Yes, I have

had to makeadjustments

77%No, I have nothad to makeadjustments


One-third unsure about full retirement ageAccording to a 2013 study by the Bankers Life Center for a Secure Retirement, more than one-third (36%) of middle-income Americans falsely believe that full Social Security benefits start with their 65th birthday.iv

The full retirement age for the oldest Baby Boomers, those born in 1946, is now age 66. The youngest Boomers, born in 1964, will not reach full retirement age for Social Security benefits until they turn age 67.

Year of birth Full retirement age

1938 65 and 2 months





1943-1954 66






1960 and later 67

Source: U.S. Social Security Administration, Retirement Planner Benefits by Year of Birth 2016. https://www.ssa.gov/planners/retire/agereduction.html.

Age to receive full Social Security benefits


Most take Social Security before full retirement ageDelaying Social Security retirement benefits until one’s full retirement age can lead to increased monthly benefit amounts—approximately an 8% increase for every year one waits up to age 70.

Although middle-income Boomers say that they will wait to start collecting their Social Security retirement benefits (excluding disability benefits), in reality, recipients begin collecting much earlier.

Among middle-income Boomers who know when they will begin collecting Social Security, three-quarters (78%) say that they will wait to age 65 to start collecting these benefits, and more than one-third (36%) say they will wait until age 67 or later. However, according to the Social Security Administration, less than four in 10 (38%) actually begin collecting at age 65 or later, and only one in 20 (6%) begin collecting at age 67 or later.v

Only one in five (19%) say they will start collecting as soon as they are eligible at age 62. Data from the Social Security Administration indicates that 46% of recipients receive benefits at age 62.

Sources: *Bankers Life Center for a Secure Retirement, Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers, 2016. **Calculated from data provided in: U.S. Social Security Administration, Annual Statistical Supplement, 2015. Released April 2016, https://www.ssa.gov/policy/docs/statcomps/supplement/2015/6b.html.

When middle-income Boomers start collecting Social Security retirement bene�tsAmong those who know when they will start collecting

Age 62 Age 63

19%

46%

When middle-income Boomers expect to start (n=378)* When Social Security recipients actually start collecting**

Age 64 Age 65 Age 66 Age 67–69 Age 70

2%

8%

1%

8%

29%

13% 13%

20% 19%

3%

17%

3%

78%Nonretirees plan to begin collecting

at age 65 or later, but only 38% actually do


Boomers carrying debt into retirementTotal Boomer debt is currently estimated to be $6.1 trillion.vi In our survey, more than eight in 10 middle-income Boomers (81%) report having some debt. Retired middle-income Boomers are slightly more likely to be debt free, with nearly one-quarter (23%) of retirees reporting that they do not have any debt versus one-sixth (16%) of nonretirees who report no debt.

Of all types of debt, credit cards are most common—more than half (53%) of all middle-income Boomers currently have some credit card debt, regardless of retirement status.

In addition, more than four in 10 (44%) currently have a mortgage, including four in 10 (39%) retirees. Other debt held by middle-income Boomers includes auto (33%), medical (17%), student loans (9%) and personal debt to another family member (7%).

Sources: Bankers Life Center for a Secure Retirement, Paying for the New Retirement: Responsibilities and Challenges for Middle-Income Boomers, 2016.

Debt held by middle-income Boomers

Credit card Mortgage Auto loan Medical Student loan(for self or otherfamily member)

Personal debtto family member

or friend

Other

56%

48%

33%

16%

11%7%

2%

53%

44%

33%

17%

9%7% 6%

19%

48%

39%

31%

18%

6% 5%2%

23%

16%

Retired (n=348)Total Not retired (n=545)

No debt


Many retirees using income to pay down debtAccording to the Pew Survey of American Family Finances, 70% of Boomers view debt as a positive force—something that expanded their opportunities by allowing them to make purchases they otherwise could not afford.vii However, many Boomers are still carrying much of the debt that financed earlier purchases, making it likely that debt will restrict, rather than expand, their opportunities in retirement.

Three in 10 (28%) middle-income Boomers say that they devote more than 40% of their monthly income to paying down debt.

Boomers making mortgage payments well into retirementMore than four in 10 (44%) middle-income Boomers own their home outright. However, among those who currently have a mortgage loan, nearly one-quarter (23%) have more than 20 years remaining on it.

A 2014 study by the Bankers Life Center for a Secure Retirement found that for many middle-income Boomers, much of their net worth is in their home. The median home equity value reported by survey participants was $100,000 to $250,000, whereas their median investable assets were $25,000 to $100,000.viii

Paying down debtPercentage of monthly income middle-income Boomers devote to paying down debt


1–20%of monthly income

35%

n=693

21–40%of monthly income

More than 40%of monthly income

32%28%

Years remaining on middle-income Boomers’ mortgages


n=396

14%

Don’t know11–20 years

32%

21+ years

23%

31%

1–10 years


Despite intentions, few retirees are debt freeWhile half (53%) of those not yet retired say that they intend to enter retirement debt free, less than one quarter (23%) of retirees actually report being debt free.

Paying off debt before retirementExpectations vs. reality


Nonretired middle-incomeBoomers who plan

to pay off debtbefore retiring (n=459)

53%

23%

Retired middle-incomeBoomers who aredebt free (n=348)


Recommendations for Middle-Income Boomers

Research Social Security optionsSocial Security is a rather complex program. Do your research or work with a professional to develop a well-informed plan for when to tap into your Social Security benefits. In particular, know your full retirement age. Delaying your benefits until your full retirement age can result in a higher income check from Social Security for the rest of your life. This can be particularly valuable if you come from a family that tends to live a long time.

If you’re unsure of your benefits, visit SocialSecurity.gov to sign up for access to personal data on your benefits through the government’s MySocialSecurity program.

Aggressively pay down debt Prior to retiring, strive to pay off as much debt as possible, including any mortgage. Debt payments should ideally be no more than 10% of your income when you retire. Of course being debt free is even better. By making a concerted effort to pay down debt before retiring, you will give yourself more of the financial flexibility you may want or need to have in retirement.

Minimize your monthly billsMonthly fixed expenses reduce your flexibility to adapt to changing financial needs or react to unexpected expenses that may arise in retirement. Consider reducing fixed expenses in discretionary expenses first such as your cable or mobile phone bill.

Seek employment incomeIf you’re able, consider remaining in or rejoining the workforce in some capacity. Whether you choose to work full-time, part-time or on a project or seasonal basis, employment income will relieve pressure on your other sources of income. Plus, many jobs may provide access to valuable employee benefits.

Develop a planIt is never too late to improve the outlook for your retirement financial security. Even if you started your preparation for retirement late, or have not started in earnest yet, putting an informed plan in place will give you insight into what steps to take now and what steps you may need to take in the future. A financial professional with experience in retirement planning can be an extremely valuable resource in building your plan and helping you find savings products that can provide a reliable monthly income.


About the Center for a Secure Retirement

The Bankers Life Center for a Secure Retirement is the company’s research and consumer education program. Its studies and consumer awareness campaigns provide insight and practical advice to help everyday Americans achieve financial security in retirement.

About Bankers Life With a history dating back to 1879, Bankers Life focuses on the insurance needs of the retirement market. The nationwide company, a subsidiary of CNO Financial Group, Inc., offers a broad portfolio of life and health insurance products and annuities designed especially for Boomers and retirees.

Bankers Life has more than 5,000 licensed professional agents in more than 300 offices across the United States. Bankers Life agents meet with thousands of Americans each week for initial retirement reviews at no cost to clients.

Learn more To learn more about Bankers Life, visit BankersLife.com or call (800) 231-9150.

Endnotes

i U.S. Social Security Administration. Annual Statistical Supplement, 2015. Released April 2016, https://www.ssa.gov/policy/docs/statcomps/supplement/2015/5b.pdf.

ii U.S. Department of Health and Human Services, “U.S. Federal Poverty Guidelines Used to Determine Financial Eligibility for Certain Federal Programs.” January 25, 2016. https://aspe.hhs.gov/poverty-guidelines.

iii U.S. Social Security Administration, “Calculators: Life Expectancy,” Accessed May 5, 2016. https://www.ssa.gov/planners/lifeexpectancy.html

iv Bankers Life Center for a Secure Retirement, Longevity Risk and Reward for Middle-Income Americans, 2013.v Calculated from data provided in: U.S. Social Security Administration, Annual Statistical Supplement, 2015. Released

April 2016, https://www.ssa.gov/policy/docs/statcomps/supplement/2015/6b.html.vi Deloitte Center for Financial Services, The future of wealth in the United States: Mapping trends in generational wealth.

November 2015, http://dupress.com/articles/us-generational-wealth-trends/. vii The Pew Charitable Trusts, The Complex Story of American Debt, July 2015, http://www.pewtrusts.org/~/media/

assets/2015/07/reach-of-debt-report_artfinal.pdf.viii Center for a Secure Retirement, The Middle-Income Boomer Retirement Gap: Savings, Education and Advice, November 2014

Bankers Life Center for a Secure RetirementCenterForASecureRetirement.com

Media ContactJennifer Born

(312) [email protected]

Study ContactCarrie Jost

(312) [email protected]

Bankers Life is the marketing brand of Bankers Life and Casualty Company, Medicare Supplement insurance policies sold by Colonial Penn Life Insurance Company and select policies sold in New York by Bankers Conseco Life Insurance Company (BCLIC). BCLIC is authorized to sell insurance in New York.

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