The Boomer Opportunity: Tapping the Expertise of the MetLife Mature Market Institute®

1. The Boomer Opportunity: Tapping the Expertise of the MetLife Mature Market Institute® Barbara Howard Gerontology Consultant MetLife Mature Market Institute May 2006

2. “I get the ‘boomer’ part but I don’t get the ‘baby’ part.”

3. Mature Market Institute • MetLife’s comprehensive resource on aging, retirement, and long-term care for MetLife and its business partners. • Research & Polls • Public Education & Policy • Facts, Stats, Information • Training & Education • Consultation • www.maturemarketinstitute.com

4. Media Leadership • The Mature Market Institute positioned to provide Thought Leadership for MetLife • Sponsored Retirement Income IQ media event to dispel myths and misconceptions about annuities • Sponsored Long-Term Care IQ media event to dispel myths and misconceptions about long-term care • Expert resource to major media resulting in coverage in the Wall Street Journal, the New York Times, CNN, ABC World News Tonight, and USA Today.

5. Today’s Presentation • Demographic Profile • Life Stages and Behaviors • Retirement and Beyond • How the MMI can help you

7. Meanwhile, outside the park Two Stones tickets please, Senior Discount

8. Boomers are getting older … Baby Boomers As of 2006 Millions Baby Boomers 5 15 25 35 45 55 65 75 85 95 100+ Age Source: MetLife Mature Market Institute Analysis Population Projections Program US Census Bureau, 2000

9. Boomers Have Unique Characteristics Health/Wellness Working Women More Education Personal Growth Involvement And Activism Spenders not Savers

10. Boomer Formative Years

11. Longevity…The Greatest Risk

12. Longevity “IQ” Low • An individual who reaches age 65 has a life expectancy of age 85. What are the chances he or she will live beyond that age? • 0 • 25% • 50% • 100% Source: MetLife Retirement Income Survey, 2003

13. How do Boomers Feel about Retirement?

14. Boomers are Anxious About Retirement • The number of boomers worried about retirement has almost doubled in four years. • Younger boomers (41-49) are more likely to worry about retirement than older boomers (50-59) 39% vs. 30% Source: The MetLife Survey of American Attitudes Toward Retirement: What’s Changed?, October 2005

15. And Are Unwilling to Spend Less to Leavean Inheritance Likelihood of Spending Less in Retirement to Leave Money for Others Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

16. Many Plan to Keep Working… Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

17. To Keep Active and for Financial Reasons Source: The MetLife Study of American Attitudes Toward Retirement: What’s Changed? October 2005

18. Aging andDisability Disabilities over Age 65 Prevalence of Alzheimer’s Disease 54.5% 60.0% 47% 50% 50.0% 45% 37.6% 40% 40.0% 35% 30% 30.0% 16.7% 19% 25% 20.0% 20% 15% 10.0% 3% 10% 5% 0.0% 0% % With Any % With Severe % Need Assistance Disability Disability 65-74 75-84 85+ Source: U.S. Dept. of Health & Human Services, July 2002 Source: Survey of Income and Program Participation, U.S.Census Bureau, March 2001

19. Perspectives on Caregiving and Long-Term Care

20. “There are only four kinds of people in this world ... Those who have been caregivers Those who currently are caregivers Those who will be caregivers Those who will need caregivers.” Rosalynn Carter, 1997

21. Family Structures Have Changed • Women are working • More divorces • Fewer or no children • Geographic separation • Care recipients living longer

22. Caregiver Profile 44.4M Caregivers 46 Average Age of Caregiver 61% Women 4.3 Average Length of Care (Years) 59% Employed Source: Caregiving in The U.S. , National Alliance for Caregiving & AARP, April 2004

23. Annual Market Survey of Nursing Home, Home Care, and Assisted Living Costs • Covers 87 major markets Source: The MetLife Market Survey of Nursing Home & Home Care Costs, 2005, The MetLife Market Survey of Assisted Living Costs, 2005

24. 2005 Major Findings • National average for a private room in a nursing home • $203/day or $74,095 annually • National average for a semi-private room in a nursing home • $176/day or $64,240 annually • National average for a private room in an assisted Living facility • $2,905/month or $34,860 annually • Average hourly rate for Home Health Aid • $19/hour • Average hourly rate for Homemaker/companion • $17/hour Source: The MetLife Market Survey of Nursing Home & Home Care Costs, 2005, The MetLife Market Survey of Assisted Living Costs, 2005

25. First major study of long-distance caregiving since 1997 • Exclusive coverage in the Wall Street Journal and reported in major national media Source: Miles Away: The MetLife Study of Long-Distance Caregiving, 2004

26. Miles AwayMajor Findings • Caregivers live an average of 450 miles from care recipient and spend $392 monthly on travel and out-of-pocket expenses • 80% work either full or part-time • 44% rearrange work schedules • 36% miss days of work • 12% took a leave of absence Source: Miles Away: The MetLife Study of Long-Distance Caregiving, 2004

27. Men are just as likely as women to be the primary caregiver Women perform more personal tasks than men Both men and women have little knowledge about company-sponsored programs Sons at WorkBalancing Employment and Eldercare Source: The MetLife Study of Sons at Work, 2003

28. Study of Employed Caregivers: Does LTCI Make a Difference? Employed caregivers of elders with LTCI are nearly twice as likely to stay in the workforce and have fewer social stresses Source: The MetLife Study of Employed Caregivers: Does Long Term Care Insurance Make a Difference, 2001

30. Retirement Looming on The Horizon

31. The Approaching Storm Underestimate Longevity Savings Rates Low Decreasing DB Plans Few are Planning Elimination of Retiree Health Benefits Rising Cost of LTC Rising Cost of Health Care Uncertainty of Entitlements

32. Less than $25K $25K - $49,999 $50K - $99,999 $100K - $249,999 $250K+ All Workers 53 12 12 11 12 Retirement ReadinessBad NewsSavings Rates are Low Ages 25-34 73 11 7 4 5 Ages 35-44 49 14 16 12 9 Ages 45-54 43 14 12 14 16 Ages 55+ 43 8 12 11 26 All figures are percentages. Source: EBRI, The 2006 Retirement Confidence Survey L0408JHEC(0807)MLIC-LD

33. Workers with Pension Coverage By Type Of Plan Source: U.S.Department of Labor (2002) and authors estimates based on Board of Governors, Survey of Consumer Finances (2001). From EBRI Issue Brief, January 2005

34. Retirement – Ready or Not? If we take a late retirement and an early death, we’ll just squeak by.

35. Progress Toward Retirement Savings Goals Employee Perceptions of Progress Toward Retirement Savings Goals Source: MetLife Employee Benefit Trends Study - 2004

36. Another Way to Look at It Baby Boomer Finances Source: AARP,Boomers Approaching Midlife: How Secure a Future:, 1998 AARP, Boomers Approaching Midlife: How Secure a Future - 1998

37. Glass Half Empty….Or Half Full

38. Boomer Window of Opportunity • Not yet retired • Better educated • Healthier • Interested in second careers • Not as concerned with leaving an inheritance • Assets in homes • Open to advice and assistance

39. Longevity Basics First • Income for life • Provide for spouse/dependents • Long-term care protection • Health care coverage • Legacy

40. The New Face of Aging

41. Barbara Howard MetLife Mature Market Institute 57 Greens Farms Road Westport, CT 06880 (203) 454-5392 Website www.maturemarketinstitute.com Metropolitan Life Insurance Company, New York, NY L06019SOI(exp0108)MLIC-LD