T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Investor Presentation (March 2019)
27 slides from T. Rowe Price's investor presentation, March 2019
Slide 1: 2019 Financial Attitudes and Behaviors Among Independent Workers
2019 FINANCIAL ATTITUDES AND BEHAVIORS AMONG INDEPENDENT WORKERS March 2019
Slide 2: Table of contents
Table of contents Survey Methodology………………………………………………………………………..… 3 Profile of Survey Participants………………………………………………………………… 4 Meet the Independent Workers……………………………………………………..……….10 Independent vs. Traditional Workers: Retirement………………………………………... 17 Independent Workers: Money Habits…………
Slide 3: Survey Methodology
Survey Methodology Who – A stratified random sample based on U.S. Census data for age and gender – 2,010 U.S. adults 22-73 years old, including: 1,044 traditional workers (those who work full- or part-time for an employer and receive a W-2 for tax purposes) 658 independent workers (those who w
Slide 4: Profile of Survey Participants
PROFILE OF SURVEY PARTICIPANTS
Slide 5: Opinions were collected from 2,010 adults 22-73 years old
Opinions were collected from 2,010 adults 22-73 years old using U.S. Census-based age and gender quotas Age Gender Millennials Female Male (22-37) Boomers 51% 49% 34% (54-73) 35% Gen Xers (38-53) 31% Q2 Which includes your age? Q3 With which do you identify? 5
Slide 6: Only working households included, with a mix of traditional and independent workers
By design, only working households were included, with a strong mix of traditional and independent workers Thinking about your sources of income, Type of worker which one currently describes you? (n = 2,010) Traditional Workers: 1. I work full-time for an employer(s) and receive a W-2 for tax purpos
Slide 7: A deeper look at the work status of the survey takers
A deeper look at the work status of the survey takers Traditional Independent Workers Nonworkers Workers (n = 1,044) (n = 658) (n = 308) 22% 17% 59% 34% 78% 24% 66% 1099 workers who receive a W-2 1099-only workers Full-time Fully retired Part-time Retired and now 1099 recipients Dependent Q5 Thinkin
Slide 8: Minimum quotas were set for education and income
Minimum quotas were set for education and income to ensure a good mix Education Income 47% 34% 53% 66% High school or some college Under $75,000 Two-year degree or more $75,000+ Q92 What is the highest level of education you have completed? Q4 Which of the following indicates your household’s total
Slide 9: Environment and marital status fell naturally
Environment and marital status fell naturally (i.e., no predetermined quotas were set) Environment Marital Status 26% 15% 26% 23% 48% 62% Married or living with a significant other Urban Suburban Single, never married Rural Separated, divorced, widowed or not remarried Q93 Finally, which of the foll
Slide 10: Meet the Independent Workers
MEET THE INDEPENDENT WORKERS
Slide 11: Boomers represent nearly half of independent workers
Boomers represent nearly half of independent workers By generation (n = 658) 24% Millennials 48% Boomers 28% Gen Xers Q2 Which includes your age? Q5 Thinking about your sources of income, which one currently describes you? 11
Slide 12: Men account for two-thirds of independent workers
Men account for two-thirds of independent workers By gender (n = 658) 37% 63% Women Men Q3 With which do you identify? Q5 Thinking about your sources of income, which one currently describes you? 12
Slide 13: Three-quarters of independent workers started independently by choice
Three-quarters of independent workers started working independently by choice Independent workers (n = 658) 27% Out of necessity 73% By choice Q5 Thinking about your sources of income, which one currently describes you? Q44 Did you start working independently by choice or out of necessity? 13
Slide 14: Why independent workers chose to work on their own
Independent workers who chose to work on their own wanted a more flexible schedule, to be their own boss, and to earn more money Why started working independently by those who chose to do so (n = 481) Have a flexible work schedule 60% Be my own boss 60% Earn more money 52% Pursue a passion 39% Keep
Slide 15: Nearly half of independent workers do 2+ types of independent work
Nearly half of independent workers are doing 2+ types of independent work, driven by millennials and Gen Xers # of different types of work Generational differences doing independently 58% 58% (n = 658) 60% 51% 49% 50% 42% 42% 40% 52% 48% One Two or more 30% 20% 10% 0% One Two or more Millenials Gen
Slide 16: Top reasons for doing multiple types of independent work
The top two reasons for doing multiple types of independent work are to maximize earnings and pursue multiple interests or passions What’s the main reason you are currently doing more Millennials are almost twice as likely to say than one type of independent work? to maximize earnings vs. to pursue
Slide 17: Independent vs. Traditional Workers: Retirement
INDEPENDENT VS. TRADITIONAL WORKERS: RETIREMENT
Slide 18: Most participants are actively saving for retirement
Most participants are actively saving for retirement, with traditional workers significantly more likely to do so than independent workers Actively saving for retirement (n = 1,549) 72% 80% 56% 70% 60% 50% 40% 30% 20% 10% 0% Traditional workers Independent workers Q85 Are you actively saving for ret
Slide 19: Independent workers primarily use IRAs; traditional workers use employer plans
Independent workers primarily use IRAs, while traditional workers primarily use employer-sponsored retirement plans Type of accounts used to save for retirement (n = 1,135) Employer-sponsored retirement plan 68% 21% Spouse's employer-sponsored retirement plan 21% 22% Roth or traditional IRA 33% 40%
Slide 20: Independent workers as likely to expect to be financially ready for retirement
Independent workers are just as likely as traditional workers to say they feel they will be financially ready for retirement Expect to be financially ready for retirement (n = 1,549) 49% 47% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Traditional workers Independent workers Q73 Do you feel you will be
Slide 21: Most participants have up to $250,000 saved for retirement
Most participants have up to $250,000 saved for retirement, with independent workers significantly more likely than traditional workers to have $250,000+ Estimated value of household’s retirement assets (n = 1,549) 67% 70% 55% 60% 50% 40% 30% 20% 14% 16% 20% 9% 9% 10% 10% 0% Up to $250,000 $250,000+
Slide 22: How workers envision retirement
Both traditional and independent workers envision working part time in retirement, while independent workers are significantly more likely to keep working indefinitely How do you envision your retirement (n=1,549) 26% Never working another day 18% 54% Working PT or freelance for a few years 52% 20%
Slide 23: Independent Workers: Money Habits
INDEPENDENT WORKERS: MONEY HABITS
Slide 24: Independent workers are more involved with their finances
Independent workers are more involved with their finances since working on their own, with millennials significantly more involved than Gen Xers and boomers Involvement with finances Generational differences (n=658) 85% 90% 47% 50% 80% 73%71% 45% 40% 70% 35% 28% 60% 30% 23% 25% 50% 20% 15% 40% 10% 2
Slide 25: How independent workers became more involved with their finances
Two-thirds of independent workers who have become more involved with their finances say they check their accounts more regularly and stay more on top of their bills How independent workers have become more involved with their finances (n = 494) 0% 10% 20% 30% 40% 50% 60% 70% 80% I check my accounts
Slide 26: Millennials more likely than boomers to work harder on good credit
Millennials are significantly more likely than boomers to be working harder to have good credit Working harder to have good credit (n = 494) 40% 40% 33% 29% 35% 30% 25% 20% 15% 10% 5% 0% Millenials Gen Xers Boomers Q54 How have you become more involved with your finances as a result of working indep
Slide 27: © 2019 T. Rowe Price. All rights reserved.
© 2019 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are collectively and/or apart, trademarks of T. Rowe Price Group, Inc. T. Rowe Price Investment Services, Inc. 201903-788499
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