ING U.S. Study Sheds Light on Peer Comparison and the Retirement
'State of Savings' in America
WINDSOR, Conn., Dec. 5, 2012 /PRNewswire/ -- According to new
research1 from the ING Retirement Research Institute,
more than half (52%) of the respondents in an ING U.S.
consumer survey said they would be motivated to save more for
retirement if their nest eggs didn't measure up to those of their
peers. Additionally, better than one-quarter (27%)
confirmed that the size of their retirement account was an
important attribute for benchmarking themselves against others—more
significant than their material possessions (17%) and salary
(16%).
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The urge to compare didn't stop in their golden years,
either. Study results showed that nearly two-out-of-ten
people (19%) already in retirement still want to "keep up
with the Joneses" when it comes to their quality of life and
financial independence.
These findings support a growing trend noted by ING U.S. over
the past three years through its pioneering, web-based peer
comparison tool, INGCompareMe.com. The tool, available to the
public at no cost, allows users to compare themselves to others on
a wide range of saving, spending, investing, debt and personal
finance matters. Users create an anonymous profile by
entering some basic information. They can also select
categories such as hobbies, interests and where they live to align
even more closely with their peer set.
"From restaurant reviews to healthcare referrals, consumers are
increasingly scanning the social landscape for peer information and
validation," noted Patrick Kennedy,
chief marketing officer for ING U.S. Retirement. "This is
also true for personal finance matters, such as saving for
retirement. People are curious to know how they stack up to
their counterparts, and a tool like INGCompareMe.com can provide a
helpful benchmark. The data we collect can also be used to
identify savings patterns and trends that support our broader goal
of helping Americans retire in the manner they expect and
deserve."
Since debuting in 2009, the INGCompareMe.com site has received
over 1.8 million visitors. Approximately 60,000 users
answered a combination of questions that captured their state of
residence, their annual household income, the amount they've saved
for retirement and the amount they anticipate needing to live a
comfortable retirement.
Mapping Out the Retirement 'State of Savings' in
America
Leveraging this data from its peer comparison tool, ING U.S.
developed the ING State of Savings interactive map,
available at INGStateofSavings.com. This map provides a
state-by-state scan and ranking of how Americans say they are
saving across the country, applying two different formulas.
One formula measures the average amount that residents of each
state have collectively saved for retirement as a percent of their
total estimated needs, with adjustments made for age. This
metric is referred to as Savings Progress. According
to the analysis, the following three states ranked the highest in
terms of Savings Progress:
- Hawaii – residents have saved
51% of their estimated needs for retirement.
- New York – residents have
saved 49% of their estimated needs for retirement.
- Nevada – residents have saved
48% of their estimated needs for retirement.
A second formula measures the average amount that residents of
each state have saved up, as a multiple of their annual household
income. This metric is referred to as Savings
Score. According to the analysis, the following three
states ranked highest in terms of Savings Score:
- New Mexico – residents have
saved 4.56 times their annual income.
- Vermont – residents have saved
4.35 times their annual income.
- South Carolina – residents
have saved 3.78 times their annual income.
Nationally, the average Savings Progress for Americans
overall was at 39%, while the Savings Score was
2.42. For a full list of the rankings and to access
the interactive map, visit INGStateofSavings.com.
The ING U.S. consumer survey found that over one-third
(34%) of Americans believed where they live has a
significant impact on their ability to save for retirement.
This might help to explain, in part, how well a state fared on the
list developed with the web tool data.
"Through this research and analysis, our goal is to offer
Americans another thought-provoking benchmark for retirement
savings. No matter how high or low a certain state is on this
list, what ultimately matters is having a plan in place that meets
an individual's own personalized needs," added Kennedy. "For
most people, retirement today has been fundamentally
redefined. As the responsibility to self-fund retirement
continues to increase, individuals must find ways to improve their
level of financial education, awareness and readiness."
As an industry leader and advocate for retirement education and
saving, ING U.S. is committed to gaining greater insights into the
various factors that affect how people save for retirement.
Through research, studies, tools and work done by the ING
Retirement Research Institute, ING U.S. is a resource to help
advance the retirement readiness of working Americans. For
more information or to try these innovative financial awareness
tools, visit INGCompareMe.com or INGStateofSavings.com.
1 Findings are from a phone-based survey conducted by
ORC International and commissioned by ING U.S. during the period of
September 20 – 23, 2012.
Respondents were 1,011 adults 18 years and older. Data were
weighted to make the results representative of the overall U.S.
population.
About ING U.S.
ING U.S. constitutes the
U.S.-based retirement, investment and insurance operations
of Netherlands-based ING Groep N.V. (NYSE: ING). In the
U.S., the ING U.S. family of companies offers a comprehensive array
of financial services to retail and institutional clients,
including retirement plans, IRA rollovers and transfers,
stable value, institutional investment management, mutual funds,
alternative investments, life insurance, employee benefits, fixed
and indexed annuities and financial planning. ING U.S. holds
top-tier rankings in key U.S. markets and serves approximately 13
million customers across the nation. For more information,
visit http://ing.us.
SOURCE ING U.S.