Octogenarians Define a Successful Retirement

Retirees 80 + Say: Be Able to Spend What You Want in Early
Retirement and Re-create a Pension in Any Way You Can

More than Half Were Not Expecting to Live as Long as They Have

NEW YORK–(BUSINESS WIRE)–What does a successful and happy retirement look like? A recent survey
of 500 retired octogenarians provides a snapshot of what an average,
successful retirement looks like, with lessons such as:

  • Wealth beats health: When deciding when to retire, their
    financial well-being was among the most important factors (68%), more
    so than their health (53%) or their age (42%).
  • The early years are the best: Nearly three quarters (72%) of
    respondents agree that the earliest years of their retirement were
    some of the best years. Nearly half (49%) say that their best and
    happiest year of retirement was within five years of retiring –
    including 24% who say that the very first year was their favorite.
  • Don’t underestimate your lifespan: Over half (54%) say that
    when they were planning for retirement, they were not expecting to
    live as long as they have.
  • Get your income on autopilot: Nearly nine in ten (88%) would
    advise younger generations to re-create pension-like income for their
    retirement. In fact, a majority (52%) feel that their
    auto-pilot income sources have given them greater peace of mind than
    accounts that they would need to actively manage themselves.

“We have all heard the saying, “listen to your elders.” In this case, we
hope younger generations listen closely to what octogenarians report
about how they planned for retirement and how this planning worked for
them once they got there,” said Ross Goldstein, Managing Director of
Retail Annuities Marketing Division, New York Life. “We hope Boomers,
Gen Xers and Millennials will take action to find pension-like income
that will allow them to retire and enjoy their younger retirement years.”

The study was conducted by Ipsos Public Affairs and commissioned by New
York Life, the nation’s largest mutual life insurer.

Reliance on More than Just Social Security

“One of our most striking findings is that a generation which many
believe is lucky to commonly receive pensions and full Social Security
benefits is in fact relying on more than those two traditional income
sources in retirement. That is a good lesson for everyone – planning
really matters.

Where Octogenarians’ Retirement Income Comes From       Income Sources That Octogenarians Wish They Had –

But Don’t Have Right Now

Social Security (90%)       Traditional pension (45%)
Savings accounts (57%)       Income annuities (36%)
Traditional pensions (55%)       401K/403B (35%)
Permanent life insurance (46%)       Managed investment accounts (35%)
Managed investment accounts (34%)       Investment annuities (34%)
Income annuities (29%)       Savings account (33%)
Investment annuities (28%)       Permanent life insurance (30%)
Mortgage (23%)        
401K/403B account (22%)        
 

“Notably, when we asked octogenarians what sources of retirement income
serve them well, income annuities topped the list standing alongside
traditional pensions and Social Security. About two in three respondents
expressed confidence in these income vehicles, which highlights just how
important income guarantees can be during a lengthy retirement,” said
Mr. Goldstein.

Methodology

This survey was conducted by Ipsos Public Affairs, October 2nd
– 8th 2015. A national sample (all 50 states) of 514 retired
adults ages 80 and older from Ipsos’ U.S. online panel completed the
seven-question, online survey in English, with an estimated margin of
error of +/- 4.9 percentage points.

About New York Life

New York Life Insurance Company, a Fortune 100 company founded in
1845, is the largest mutual life insurance company in the United States*
and one of the largest life insurers in the world. New York Life has the
highest possible financial strength ratings currently awarded to any
life insurer from all four of the major credit rating agencies: A.M.
Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard &
Poor’s (AA+).** Headquartered in New York City, New York Life’s family
of companies offers life insurance, retirement income, investments and
long-term care insurance. New York Life Investments*** provides
institutional asset management. Other New York Life affiliates provide
an array of securities products and services, as well as retail mutual
funds. Please visit New York Life’s website at www.newyorklife.com
for more information.

*Based on revenue as reported by “Fortune 500 ranked within
Industries, Insurance: Life, Health (Mutual),” Fortune magazine,
6/15/15. For methodology, please see http://fortune.com/fortune500/.
**Individual
independent rating agency commentary as of 8/11/15.
***New York
Life Investments is a service mark used by New York Life Investment
Management Holdings LLC and its subsidiary, New York Life Investment
Management LLC.

Contacts

New York Life
Terri Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
or
Sloane
& Company

Janet Reinhardt, 212-446-1877
JReinhardt@sloanepr.com