Survey of Debt and Retirement Security at a Glance

Number of survey participants: 2,061

Gender distribution: 52 percent male; 48 percent female

Age distribution: 25% from each generation, Generation Y - ages 20 to 26; Generation X - ages 27 to 42; Baby Boomers - ages 43 to 61; Silent Generation - ages 62 to 73

Fast facts

• 46 percent of respondents did not classify at least one common financial obligation, such as outstanding balances on credit cards or home-equity lines of credit, as debt
• 11 percent of those who are in debt don’t consider themselves as being in debt
• Two-thirds of working (non-retired) respondents expressed concern about the amount of debt they will have when they enter retirement
• 43 percent of non-retirees who are in debt indicated that debt would affect their ability to save for comfortable retirement a “great deal”
• 32 percent of consumers who are in debt said they cut back on their retirement savings as a result of their debt
• Top two financial goals: paying off debt and saving for retirement. Non-retirees with less than $2,500 in non-mortgage debt were much more likely to concentrate on saving for retirement than respondents with higher debts
• Top three things respondents were willing to take on debt to purchase:
  1. Holiday gifts for family
  2. Internet access at home
  3. Home computers

Gender differences

• Women were more likely than men to acknowledge carrying month-to-month balances on credit cards (51 percent vs. 43 percent) and having late bills (14 percent vs. 10 percent)
• Women were more likely to report spending more than they should (58 percent vs. 51 percent)
• More women than men would use credit for holiday gifts, while more men would use it for cable or satellite TV service or dining out regularly
• Nearly six in 10 women said they were not at all likely to take on new loans or debt in the next 10 years (58 percent), far more than the 42 percent of men who said the same

Generational differences

• While most respondents said debt should be avoided if possible, 21 percent said debt is a normal part of their lifestyle; Baby Boomers were most likely to take this attitude (27 percent), while the Silent Generation and Generation Y were least likely (17 percent)
• 73 percent of Silent-Generation respondents said other people’s debt is the result of financial irresponsibility , yet a majority of respondents from this generation also had debt
• 41 percent of the Silent Generation said it is not reasonable to carry over any debt from month to month; only 27 percent of younger generations agreed
• Generation X was much more likely than other generations to have more than $25,000 in non-mortgage debt; 19 percent had $50,000 or more
• Generation Y was least likely to have non-mortgage debt totaling $25,000 or more
• Two-thirds of respondents who had $25,000 or more in non-mortgage debt expressed feelings of financial insecurity

Securian Retirement is a unit of Minnesota Life Insurance Company, a Securian company. It has been providing comprehensive retirement plan solutions since 1930 and serves over 3,300 retirement plans nationwide with more than $10 billion in assets. Securian Retirement offers annuities and retirement plans underwritten by Minnesota Life, one of the most highly-rated life insurers in the US. Securian also has over $634 billion of life insurance protection and over $30 billion in assets under management (as of December, 2007).