FOR IMMEDIATE RELEASE: 
May 4, 2006

CONTACT:
Idil Oyman 202.777.3518
Kelly Alderson 202.777.3542

New Poll Shows Americans More Worried About Making
Retirement SavingsLast Than Saving in General
Survey of 50-70 Year Olds Finds Retirement Security Should be Front
Burner Issue for Congress

WASHINGTON – Today Americans for Secure Retirement (ASR)  released a poll showing that more working Americans aged 50-70 years old (50%) are concerned about making their retirement savings last their lifetime than are concerned with saving enough for retirement (38%).  The poll – jointly conducted by Republican pollster Bill McInturff of Public Opinion Strategies and Democratic pollster Mark Mellman of the Mellman Group – also found that more than two-thirds of older American voters are concerned about maintaining their living standard throughout retirement, and nearly half (48%) say they are more concerned about this than when they first retired.  Fifty-nine percent of older Americans said Congress should create an incentive for people to annuitize their savings so they last a lifetime.

“While Congress has focused in the past on promoting savings, this poll shows that a more pressing concern for a majority of older American workers is making these savings last in order to maintain their living standard and financial security throughout their retirement, ” McInturff said.  “This should serve as a wake up call to Washington that retirement security will indeed be on the minds of a very important voting bloc come November,” added Mellman.

Today, the life expectancy of a 65-year-old is close to age 83 and many more will live well into their 90s and past 100. This means that Americans will need to stretch their savings so they last throughout their golden years.  And, with more than 88 million working Americans not enrolled in any kind of workplace retirement plan, and Social Security replacing less and less of pre-retirement income (about 42 %), the need to promote tools that help manage their retirement savings so they last throughout retirement is critical for Americans’ financial security.  Even among those who do have an employer pension, 43% are concerned that their pensions may not meet their obligations and pay the full benefit.

“With increasing life expectancy for average Americans, there is an increasingly obvious gap in income to carry them through old age. That's why it’s important to help Americans secure a steady stream of income to last as long as they live,“ said ASR Chairman Walter Welsh. “And, this poll shows that a majority of older Americans, across party lines and across income levels support legislation that would give them a strong tax incentive to use lifetime annuities to manage some of their retirement savings and earn a paycheck for life.”

The POS/Mellman poll surveyed 500 registered voters between the ages of 50-70 to measure the retirement security priorities of this politically active population. Interviews were collected April 11-13, 2006.   The margin of error associated with a sample of this type is +/- 4.38%.  Among the key findings of the poll were:

1) A majority of working Americans age 50-70 are more concerned with “making their savings last a lifetime” (50%), than with “saving a significant amount of money before retirement” (38%);

2) That the concern over maintaining living standard (66% concerned and 33% very concerned) was nearly the same level as concern that they may not be able to have enough money to take care of medical and long-term care expenses throughout retirement (71% concerned, 35% very concerned);

3) 43% of older Americans with employer sponsored pension plans are concerned they will not actually receive their full benefits;

4) A solid majority (54%) of respondents have seen a great deal or something about annuities. A significant number of middle-income Americans own annuities, either qualified or non-qualified: 30% of voters age 50-70 who have annual household incomes of $40,000-$60,000 have an annuity, and 39% of those with household incomes of $60,000-$80,000 have an annuity;

5) 59% of voters aged 50-70 years old favor a legislative proposal to provide a 50% tax exclusion on the income payout of a lifetime annuity, up to $20,000 a year.  More than 60% of older voters in every region of the country, and more than 66% in every income group favor the proposal. 64% of older Americans who have a pension support the above proposal;

6) Support for the legislative proposal mentioned above is strong across party lines, -- Democrats (64% favor), Independents (65%) and Republicans (75%). 

Americans for Secure Retirement – a coalition of 34 members representing women’s, small business, agriculture, Hispanic, and African American groups as well as the life insurance industry – advocates legislation called The Retirement Security for Life Act (S. 381, HR 819) which would provide a 50% tax exclusion on the income from the payout of individual lifetime annuity, up to $20,000 per year, and would encourage Americans to secure a steady paycheck for life.  For an average American taxpayer in the 25% tax bracket, this would result in $5,000 of tax savings. For more information on ASR or the poll, please visit www.paycheckforlife.org.

For more information on the poll results, click here