1. Senior Market Advisor Senior Mindset Research April 2010

2. Study Objectives  To capture the current mindset of today’s senior financial consumer.  To identify the needs of Seniors in financial planning.  To obtain insights on how planners can better approach clients and prospects.  To understand issues and hurdles that the current economic environment has presented for Seniors.

3. Study Methodology  A 10-minute online survey was conducted from March 29 to April 2, 2010 via a national respondent panel.  Study conducted among adults 60+ with total non- home assets of $35,000 or more.  300 respondents were targeted with quotas by generation, with an overall margin of error of +/- 5.7 percentage points.

4. Three in Five are Retired and Not Working, But One in Ten “Retirees” Are Working 4 12% Q1: Which of the following best describes your current employment situation? Are you:

5. Only Half Say They are Confident about Meeting Their Goals in Retirement 5 Q2/3: Based on your current financial and health conditions and expectations, how confident are you that you will be able to (continue to) meet your financial goals in retirement? 54%

6. 38% Not Yet Retired RetiredRetired Retired Seniors Are More Confident… 61% Q2/3: Based on your current financial and health conditions and expectations, how confident are you that you will be able to (continue to) meet your financial goals in retirement? Seniors who rated “4“ and “5” on a five point scale 6 Confident they will meet goals Confident they will continue to meet goals

7. 49% Age 60-69 Age 70+ Older Seniors Are More Confident… 64% Q2/3: Based on your current financial and health conditions and expectations, how confident are you that you will be able to (continue to) meet your financial goals in retirement? Seniors who rated “4“ and “5” on a five point scale 7 Confident they will meet goals Confident they will continue to meet goals

8. 8 Why are they confident, or not? The following slides are representations of the verbatim responses to survey questions. The words appear in proportion to the frequency with which they are mentioned by respondents; therefore the larger a word the more times it was mentioned.

9. Why are they confident?

10. Why are they not confident?

11. One Third Say the Economy is In “Bad Shape”, and a Quarter Say they Are “Worried Sick” 11 Q5: How would you describe the current economic situation in the U.S.? Choose the statement that best reflects your view:

12. Seniors Think Things Will Get Better, but Not By Much, and Not For a Long Time Q6. Now, looking to the future, what do you predict the economic situation will be like: Give it a grade, where an “A” means “very good” and an “F” means “very bad.” “A “ “B” 12

13. Two in Five Say The Downturn has Had an Impact on Them Personally 13 Q7: To what extent has the economic downturn impacted you personally? Please use a scale of 1 to 5 where 1 is “no impact at all” and 5 is “very significant impact.” 43%

14. 59% Not Yet Retired RetiredRetired Seniors Still Working More Likely to Say The Downturn Impacted Them 35% Seniors who rated “4“ and “5” on a five point scale 14 Downturn Impacted Personally Q7: To what extent has the economic downturn impacted you personally? Please use a scale of 1 to 5 where 1 is “no impact at all” and 5 is “very significant impact.”

15. On Average, Seniors Grade Their Current Personal Financial Situation a “C” “C”“C” Q8: How would you rate your current personal financial situation? Give yourself a grade, where an “A” means your personal financial situation is “very good” down to an “F” if your personal financial situation is “very bad.” 15 Average Grade All Seniors: Current Finances

16. All Seniors: Current Health On Average, Seniors Grade Their Current Health Situation a “C+” “C+”“C+” Q9: How would you rate your current personal health situation? Give yourself a grade, where an “A” means your personal health situation is “very good” down to an “F” if your personal health situation is “very bad.” 16 Average Grade

17. Seniors See Their Personal Situation Improving Slowly Q8: How would you rate your current personal financial situation? Q10. How do you think your personal financial situation will change in the future: Grade yourself from “A” to “F” on where you think you’ll be: “A “ “B” 17

18. 8% High Returns Low Risk What’s More Important? 92% 18 Wealth accumulation Financial peace of mind Q11: What’s more important to you right now when it comes to your money?

19. 91% Health WealthWealth What’s More Important? 9% 19 Q30: For people your age, what do you think is more important, health or wealth?

20. Seniors Have and Use a Number of Financial Products and Services 20 Q12: Do you have or use any of the following financial products or services?

21. Seniors Report Increased Familiarity with Health Insurance and Financial Planning 21 Q13: Over the past year, how has your familiarity with each of the following changed?

22. Seniors Report Increased Interest in Health Insurance and Financial and Retirement Planning 22 Q14: Over the past year, how has your interest in each of the following changed?

23. Seniors Are Less Familiar with 529 Plans, Pensions, Annuities, Bonds, Mutual Funds 23 Q13: Over the past year, how has your familiarity with each of the following changed?

24. Seniors Report Less Interest in 529 Plans, Term Life Insurance and Annuities 24 Q14: Over the past year, how has your interest in each of the following changed?

25. Seniors Say An Advisor Must be Honest, Trustworthy and Act in Their Best Interests 25 Q15: Which of the following are the three most important characteristics of a person from whom you might seek advice on financial matters? (Select up to 3.)

26. All Seniors Do They Seek Advice? No, not really… 33%33% Q16: Do you routinely seek the advice of others when it comes to your financial matters? 26 Say Yes

27. Age and Retirement Status Do Not Affect Seeking Advice 27 Q16: Do you routinely seek the advice of others when it comes to your financial matters?

28. Honesty, Knowledge and Trustworthy are the Most Important Traits Q22. What is the most important characteristic of someone that you talk to, or might talk to, about your financial matters?

29. Seniors Who Seek Advice Generally Contact Financial Planners, Advisors or CFP’s 29 Q17: Is that person a:

30. Half of those Without An Advisor Say Nothing Would Warrant a Closer Look 30 Q18. Other than a recommendation from someone you trust, what general sales or marketing approach could a professional financial planner or advisor use to get your attention and earn a closer look?

31. Younger Seniors see the biggest gap between how well they want their Advisor to know them and reality 31 22 pts 26 pts 10 pts 28 pts 18 pts 20. How well do you want your financial advisor or planner to know you? 21. How well does your financial advisor or planner know you? Total scores for “5 “ and “4” on a five point scale

32. After Themselves, Seniors Trust Family & Friends, Accountants, and Financial Advisors 32 Q24. When it comes to financial matters and managing your money, whom do you trust? Please rate on a scale of 1 to 5, where “1” means “do not trust at all” and “5” means “completely trust.”

33. With $25,000 in Cash, Two in Five Would Pay Down Debt 33 Q25. Let’s say you had $25,000 in cash right now. Which of the following would you do?

34. Seniors are Most Worried about Medical Expenses or Outliving Savings 34 Q26. When you think about your financial security during your retirement years, which of the following are you most worried about?

35. Retired Seniors are More Worried about Medical Expenses or Outliving Savings, Those Still Working More Worried about Lack of Social Security and Personal Savings 35 Q26. When you think about your financial security during your retirement years, which of the following are you most worried about?

36. One in Five Seniors Worried About Outliving Savings Expect that Medicare Would Pay Long Term Care Costs 36 Q27. If you found yourself (or your spouse, if applicable) in the future needing long term care, delivered at home or in a facility, where would the money primarily come from to cover those costs:

37. Most Seniors Do Not Want to Discuss Health Care with Their Financial Advisors 37 Q28. Have you discussed, or would you want to discuss, health care issues with the person from whom you seek financial advice?

38. Nancy Pelosi Perceived as the Most Frightening When it Comes to Disrupting the American Way of Life 38 Q32. Who frightens you most when it comes to disrupting the American way of life?

39. Three In Five Doubt We Will Ever Have a Budget Surplus Again 39 Q33. In whose lifetime do you think we’ll next see a budget surplus in the U.S.?

40. Two Thirds Are Upset by the Increased Role of the Federal Government 40 Q34. Is the increased role of the federal government in the economy, businesses and now healthcare something that makes you:

41. Knowing what you know now, what financial advice would you give to yourself if you could go back 20 years in time? 41

42. Knowing what you know now, what financial advice would you give to yourself if you could go back 20 years in time?

43. “Remember, no one cares about your financial security like you do. Keep your own counsel.” “By the way wealth can help you get healthy, but health cannot help you get wealthy.” “Remember, no one cares about your financial security like you do. Keep your own counsel.” “By the way wealth can help you get healthy, but health cannot help you get wealthy.”

44. “Start saving sooner and more.” “Save more... Invest earlier...Get more insurance at a younger age.” “I would have planned for the future a whole lot better than I have.” “Start saving sooner and more.” “Save more... Invest earlier...Get more insurance at a younger age.” “I would have planned for the future a whole lot better than I have.”

45. Respondent Profile 45

46. Sample Divided Equally Among Men and Women, Most are Age 60 to 69 46

47. Most are Parents and Grandparents 47

48. Most Have Completed Some College 48

49. Median Income is $56,000 49

50. Median Assets Are $445,000 50

51. Three in Four Are Married 51

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