2 4 3 the tim The Weeks Ahead…………. On the Retir e. The estim ement Sid ates vary widely (fro e…. m $64,000 to $635,000), depending on how much risk President’s Report —Dallas L. Salisbury the individual or couple is Still to com EBRI’s 2008 Retirem e this year is our annual update ent Confidence Survey received willing to assume. As high as th of the EBRI/ICI 401(k) database, the 2008 Health particularly heavy ese estimates are, the media coverage this Issue Brief notes July 2008 Confidence Survey release this fall, the 2008 Cons Spring because it clearly docum that many individuals will need even more ented the growing worries that Am money than the amounts umer Engagemeericans are feeling about the nt in Health Care S projected, because the urvey, and other analysis does not factor in the econom Issue Brief y. Released as our April and Notes treatm savings needed to cover long-ter EBRI Issue Brief, ents of important policy an it showed the biggest drop in confidence d design is m care expenses, early retirem sues. August will bring ent, an or savings needed to cover any basic costs of amIssue Brief ong active workers in the 18-year history of th on the application of behavioral finance and 401(k) living, such as food, cl e RCS (a 9 percentage-p experience to con othing, or shelter. oint one-year drop in sumer- th focused health care. those very confident they will be able to live comfortably throughout retirement), and a very EBRI will celebrate its 30 birthday with a reception on the evening of Dec. 3, 2008. Plan to EBRI’s health research continue sharp drop in confidence among current retire s to track developm es. The RCS is the longest-running survey of ents in consumer-driven health plans (the join us……………..……...For more information, send an e-mail to ebri30reception@ebri.org You will so March Americans’ attitudes to EBRI Issue Brief on be asked to com ward retire published results of the latest plete the 2008 spo ment and savings issues, and was nsor survey to give us y EBRI/Commonwe one of the earliest this year a our insigh lth Consumerism ts on what we in should focus on in the m Health Care Survey). Th to measure the public’s deteriorating outlook. If e February onths ahead. I urge EBRI Notes you to go online to com reported on the discussion of our Fall 2007 there’s a silver lining, plete the survey. it’s that Americans finally EBRI Dec. 4, 2008, policy forum will be on “The Outlook for Consumer Engagement in m policy form ay be starting to recog on “The Future of Em nize reality ploym : Past survey ent-Bassed clearly m Health B easured a lo enefits: Hav t o ef Em false ployers Reached a confidence Health Care”.………………...For more information, e-mail EBRIDecember2008PF@ebri.org On behalf of m Tipping Point? about their ability to afford retirem ” (the answer: Not yet, yself and the team at EBRI, I ent. At leas but they’re thinking about it). extend m t many people are waking up to the fact that they y grateful appreciation to our Members, whose m haven’t saved enough. oral and financial commitment to our mission and vision continues to make all our work ASEC Partners Meeting Oct. 22, 2008…..For more information, e-mail ASEC1008@asec.org possible. Yo And with state governm ur dedicatioe n and support are vital to our nts continuing to innovate and push for their ow ability to continue to n health coverage “tell it like it is” with program “just the facts.” And I th On a mos, interest rem re positive note, ains high in overhauling ER EBRI’s unique com ank the many others with whom puter m ISA’s fe odeling analys we work. deral pre-emption of health insurance. is, published in our June The February EBRI Issue Brief EBRI Issue Brief , found that widespread a revisited that issue, providing an doption of automatic 401(k) historical review of how and enrollment and escalation why the pre-em I wish you a great summer and fall. under terms of the Pension Protec ption provision was added to ERIS tion Act (PPA) is likely to m A, and pointing out that ake a significant positive im the law is working pact With the 2008 presidential campaign underway—and the U.S. economy in a volatile and exactly as its crafters had on the retirement savings of intended—be that good or bad. many American workers—especially among low-income workers. vulnerable condition—“financial security” is rising up the list of important issues. Employee This analysis served as a basis for EBRI’s Spring 2008 policy forum, the results of which were benefits are a big factor in that equation, and policymakers, like employers and employees, are Other Activ published inities…. the July EBRI Notes. This is part of EBRI’s ongoing effort to more precisely intensifying their focus. On other fronts, EBRI has testified before quantify how different cohorts of Americans w various panels of Congr ill be likely to fare in retirem ess and adm ent, based on inistration Advisory Comm sophisticated modeling ittees m of how much any times this year. they will need for basic expenses and how much they are Yet, the level of economic challenge may delay the ability of Congress or a new administration likely to have. Dallas Sa to focus on health and retirem lisbury ent reform. The economy per se, along with the housing and EBRI continues to be a highly ranked resource for reporters (again this year, I presented a President & CEO liquidity crisis, are stealing the last weeks of this Congress, and may well dominate the early sem Responding to strong interest am inar to reporters and editors from around th ong some of EBRI’s e country at a special retirem Member organizations, earlier this year we ent program EBRI tenure of a new president. The sheer scope of the budgetary challenge presented by current sponsored by the National Press Foundation). conducted the first Recent Retirees Survey to see what it would take EBRI reports are among the m to convince skilled ost frequently health and retirem ent promises through Medicare, Medicaid, and Social Security is not unknown downloaded at the SSR employees to delay their retirem N academ eic research W nt and stay longer with their em eb site, and are amployer past norm ong the most frequently cited al retirement to Congress, as lawmakers are regularly reminded by congressional agencies like the in GAO reports and in testim age. Results, published in the July ony before Congress EBRI Issue Brief, by witnesses for other organizations, when the found, surprisingly, that money alone was Congressional Budget Office (CBO) and the Government Accountability Office (GAO). A recent hearing o not that big a factor: Being told r report topic is related to savings, retirem they were valued was m ent, health, ost important. The survey suggests a or employee benefits. Our Web letter from the CBO director to Rep. Paul Ryan (http://www.cbo.gov/doc.cfm?index=9216) site is heav number of steps em ily trafficked and we ployers can take to retain are a frequent “hit and transfer these workers—includ ” as search engines help ing, especially, not waiting. surfers reported that to meet current legal commitments, the long-term top marginal tax rate would have find inform Most retirees said they spen ation on employee benefits. t surprisingly little time thinking in advance about retirement, to climb to 88 percent. The letter contained much more, all of it chilling in terms of its generally less than two years. implications for the scope of tax and entitlement reform that lies ahead. We continue to be very active with the EBR I-Education and Research Fund American Savings Education C And as part of EBRI’s mission to dissem ouncil (ASEC) and Choose to Save pub inate hard data on the state of employee benefit lic education programs. EBRI works closely EBRI’s Founders saw the need for an organization that would deal with “just the facts,” with other organizations to build programs, we published the most current statis public awareness of what indivi tics on IRA and 401(k) ownership in our May duals can do to build health and regardless of how numbing or disappointing they might be, so that policy and program design financial security, and to better understand EBRI Notes, and updated an earlier report on “Benefit their needs and opport Cost Comparisons Between State and unities—such as our would be well-informed. This fall will mark 30 years of fulfilling that mission. The wonders of participa Local Governm tion in and supp ents and Private-Se ort for the n ctor Em ational ployers,” in our June America Saves Week ( EBRI Notes. www.americasavesweek.org This last item ). technological developments over those 30 years now allow “instant” access to all that we have CTS public service announcem highlights the fact that the wide com ents (PSAs) were modified to prom pensation gap between these groups reflects the fundam ote both America Saves Week ental published over those decades at www.ebri.org and differences in job functions and skill requirem Military Saves Week, and are being seen by Am ents between state/loca erican service personnel on the P l governments and private- entagon’s world network, on all m sector employers. ilitary bases, and onboard ships. As president of EBRI since it opened its doors in 1978, I am proud to say that our underlying mission and vision remain unchanged, after three decades of hard work and countless I am proud to report that “Savingsman,” our PSA campaign featuring the high-flying champion On the Health Side… publications. This was confirmed by our trustees during reviews in late 2007 and, most recently, of saving and planning f EBRI has long been working toward m or retirement, won a erging 2008 Emm our health and retirem y Award in June f ent analyses. A good rom the National at our Spring board meeting in 2008. At their recommendation, a “branding” review is Capital Chesapeake Bay example of this combined analys Chapter of the National A is is the May EBRI Issue Brief cademy of Television Arts and Sciences. This , which published the results of a underway. And in this remarkable election year—our anniversary year—I am pleased to say our is the seventh year that Choose to Save PSA new EBRI computer simulation model on “Savings Needed to Fund Health Insurance and Health s have won Emmy awards, and numerous other th research and analysis continues unabated. Here’s a quick review of the first half of our 30 awards as w Care Expenses in Retirem ell. Four new PSAs are in final developm ent.” The analysis presents estim ent. ates for individuals and couples to anniversary year. determine the assets needed to cover retiree health costs 50 percent, 75 percent, and 90 percent of