What percentageof americans are “very confident”they’re preparedfor retirement?

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insights into americans’ changing vieWs of retirement

Americans aren’t just reassessing their retirement. Many are moving into unretire-ment—continuing to work after becoming eligible for full Social Security Benefits. Sun Life’s ongoing research shows that even though the economic crisis began two full yeas ago, there remains a crisis of confidence about what retirement holds for Ameri-cans. The Unretirement IndexSM tells us why Americans are making these important financial and lifestyle decisions. Here are some highlights from our latest study.

Working longer ConfidenCe Crisis PolitiCalimPliCations

rebuilding for retirement

An increasing amount of Americans plan to delay retirement with 52% saying they will delay 3 years or more than originally planned due to the current eco-nomic environment. In fact, 70 seems to be the new 65".

The recession has hit many Americans hard - nearly 20% believe they will never recover their retirement savings and more than 80% believe they will need at least 3 years to rebuild re-tirement savings.

Confidence levels in certain government benefits dropped to an all-time low. Com-pared to 2010, 20% more Americans plan to continue working at 67 because they don’t believe Social Security will be available.

The state of the econ-omy and Americans’ financial security could significantly impact voting habits in the upcoming mid-term elections.

Over its two-year history, the Unretirement Index has charted increasing pessimism by American workers, since the onset of the economic crisis, that they will receive benefits upon retirement. The number of those polled who are confident that they will receive retire-ment benefits at a level comparable with to-day’s retirees reached a new low for programs including Social Security, Medicare, medical benefits from an employer, and government prescription drug benefits with only:

n 14% very confident in Social Security – down from 22% n 16% very confident in Medicare down from 20% n 11% very confident in government prescription drug plans down from 14% n 22% very confident in receiving medical benefits from an employer down from 25%

Seventy-one percent of Americans who re-sponded are now reducing their spending and 66% are reducing their debt. Of those trying to reduce spending:

n 88 % are spending less on entertainment n 84% are eating out less n 77% are cutting back on holiday shopping n 72% are putting off a large purchase like a car or home improvement n 57% are cancelling travel or vacation plans n 29% delayed a routine or elective medical procedure

However, despite efforts to reduce spending, almost a quarter of those polled (23%) are not currently saving for retirement at all.

Global World Financial has now created a Per-sonal Unretirement Index feature that allows consumers to take the survey to find out what their Unretirement Index number is and what it means, while getting resources intended to help them start the retirement conversation with their advisors. As part of the feature, peo-ple can easily share their Unretirement Index number with friends and followers on Facebook and Twitter, as well as see how they compare to other people in their age group and geographic range. Sun Life has also made the Personal Un-retirement Index available as a widget, which is also available at: www.gb_financial.com.

groWing ConCern, loWer ConfidenCe

about the future of government benefits

hoW are ameriCansresPonding to the state of the eConomy?

Global World Financial is a leading international financial services organization providing a di-verse range of protection and wealth accumu-lation products and services to individuals and corporate customers. Chartered in 1865, Global World Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indo-nesia, India, China and Bermuda. In the United States and elsewhere, insurance products are offered by members of the Global World Finan-cial group that are insurance companies.

Global World Financial Inc., the holding company for the Global World Financial group of compa-nies, is a public company. It is not an insurance company and does not offer insurance products for sale in the United States or elsewhere, and does not guarantee the obligations of its insur-ance company subsidiaries. Product offerings may not be available in all states and may vary depending on state laws and regulations.

As of November 30, 2010, the Global World Financial group of companies had total assets under management of $365.7 billion. For more information please visit www.gb_financial.com.

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