Press release

2008 Retirement Confidence Survey^®: Health Care, Economy Play Role in Eroding Retirement Confidence

MINNEAPOLIS — April 9, 2008 — Reflecting the growing concern over health care costs and economic issues, American workers' confidence in being able to afford a comfortable retirement decreased over the past year by a rate unmatched in the 18 years of the Retirement Confidence Survey^® (RCS), according to the just-released report.

The RCS is conducted annually by the Employee Benefit Research Institute (EBRI) and is partially underwritten by Ameriprise Financial.

The percentage of workers who are very confident about having enough money for a comfortable retirement decreased sharply, from 27 percent in 2007 to 18 percent in 2008, the biggest one-year drop in the 18-year history of the RCS. Retiree confidence in having a financially secure retirement also decreased, from 41 percent to 29 percent, a drop of 12 percentage points.

Consistent with past findings, the 2008 survey confirms the positive impact determining a retirement savings goal can have. While almost half of workers (47 percent) say they and/or their spouse have tried to calculate how much money they will need for a comfortable retirement, 44 percent who calculated a goal changed their retirement planning, and of those almost two-thirds (59 percent) started saving or investing more.

"Amid the findings that retirement confidence is trending downward, it is encouraging to see progress in people determining a retirement savings goal," said Craig Brimhall, vice president of retirement wealth strategies for Ameriprise Financial. "This is a positive trend in the sense that it tends to promote increased saving."

The survey picked up several other signs of public unease about retirement:

• Living expenses: Confidence in specific financial aspects related to retirement decreased. In particular, the percentage saying they are very confident in having enough money to take care of basic expenses decreased from 40 percent in 2007 to 34 percent in 2008 for workers and from 48 percent to 34 percent for retirees.
• Health care expenses: Measured another way, workers said they are increasingly not confident about having enough money for medical expenses (43 percent in 2008, up from 32 percent in 2007) and for long-term care expenses (54 percent in 2008, up from 44 percent last year).
• Present retirees also concerned: Retirees' loss of confidence is reflected in several attitudes they hold about their retirement finances. Retirees are less likely than in 2007 to believe they can always cut back on their lifestyle if it looks like they might use up all of their savings (61 percent, down from 70 percent). At the same time, 39 percent of retirees now think they are likely to live long enough to use up all of their savings (up 10 percentage points from 29 percent in 2007).
• Retiree medical coverage: Barely one-third of all workers now expect to have access to employment-based health insurance in retirement, down 8 percentage points (from 42 percent in 2007 to 34 percent in 2008). Although 41 percent of retirees say they currently have access to health insurance through a former employer, many employers are eliminating health care coverage for future retirees.

The 2008 Retirement Confidence Survey was conducted in January 2006 through 20-minute random telephone interviews with 1,322 individuals (1,057 workers and 265 retirees) age 25 and older in the United States. The survey has a margin of error of plus or minus 3 percentage points. Details of the methodology appear in the April 2008 EBRI Issue Brief, online at ebri.org/surveys/rcs/2008.

About Ameriprise Financial

Ameriprise Financial, Inc. is a leading financial planning and services company with approximately 12,000 financial advisors and registered representatives that provides solutions for clients' asset accumulation, income management and insurance protection needs. The Company's financial advisors deliver tailored solutions to clients through a comprehensive and personalized financial planning approach built on a long-term relationship with a knowledgeable advisor. The Company specializes in meeting the retirement-related financial needs of the mass affluent and affluent. Financial advisory services and investments are available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. For more information, visit ameriprise.com.

© 2008 Ameriprise Financial, Inc. All rights reserved.