2020 Protected Lifetime Income Study And Segmentation Report

Summary of key characteristics across the segmentsOptimisticDreamers – 13%CautiousPreparers – 17%UncertainStrugglers – 29%PurposefulPlanners – 12%Dream Outlook: Plan for best Open to new and differentopportunities Value: creativity andsuccess – want to do goodfor society Expect: to be more active Optimistic will enjoyretirement but less certainabout financial preparation Outlook: Prepare for theworst Stick to tried and true way ofdoing things Value: being prepared,secure, and healthy inretirement Expect: to spend more timealone and less time caringfor others in retirement Cautiously optimistic willenjoy retirement Concerned about risk ofsurprises Outlook: Prepare for theworst Low expectations forability to enjoy retirement Expect: to be adaptableand take things as theycome in retirement; hopeto spend more timepursuing other interestsand less time caretaking Value: health - want to bephysically able to dothings and get in controlover life direction Outlook: Prepare for theworst Optimistic about ability toenjoy retirement Have concerns aboutfinancial risk and volatility Value: having a wellrounded life and makingtime for fun in retirement Expect: to enjoymanaging finances morein retirement Outlook: Always plan forbest Wide open to new anddifferent opportunities, veryoutgoing Highly optimistic both inlife and about retirement Value: achievement,adventure and excitementbut also want to do good Expect: to be strategic andplan in retirement, alsoexpect to be more engagedand care for othersDecide Financial decisions:Instinct, family and friendrecommendations Trust: friends and family Risk profile: low to none Financial decisions: dotheir own research or expertopinions Trust: financial advisors Risk profile: balanced Financial decisions:Instinct, family and friendrecommendations Trust: family or no one Risk profile: not relevantor none Financial decisions:expert opinions or ownresearch Trust: financial advisors Risk profile: balanced ormoderate risks Financial decisions: dotheir own research Trust: financial advisors Risk profile: balanced tosubstantialDo Plan: set of goals or Plan: set of goals or direction Plan: nonedirection or no planin mind if not a well Knowledge: Don’t know Knowledge: Basicdeveloped planmuch about retirementunderstanding of retirement Knowledge: Know quite a bitplanning and don’t spendplanning but notabout retirement planning butany time on itcomfortable and don’tstill have questions; somespend much time on itspend time on itAmbitious RiskTakers – 28% Plan: have specific or at Plan: have specific or atleast general financial planleast general financial plan Knowledge: Know quite a Knowledge: Know quite abit or feel are experts onbit or feel are experts onretirement planning andretirement planning andspend at least a moderatespend time on it17amount of time on it

3. Segment Profiles orPersonasWhile the segments are formed bydifferences in retirement attitudes,personality characteristics and behaviors,there are also stark differences across thesegments on financial product ownershipand demographics. The largest twosegments (Uncertain Strugglers andAmbitious Risk-Takers) are mostdifferentiated from one another in terms ofsocioeconomic status and financialproducts.The Optimistic Dreamers and AmbitiousRisk Takers are youngest, while theCautious Preparers are the oldest,however, it is important to note that thereare Americans of all ages representedsolidly across each segment.18Proprietary & Confidential Alliance for Lifetime Income All rights reserved

Get to know the inStrugglers29%19Proprietary & Confidential Alliance for Lifetime Income All rights reserved

“I’m sure I will enjoy my retirement when it comes but it seemsa long way off at this point. I am not all that comfortable withretirement planning and it’s a bit overwhelming, so I haven’tdone much other than save in my 401k. I generally trust myinstincts but frankly I’m a little anxious that my retirementsavings will not provide enough for me to live on for the rest ofmy life.”OptimisticDreamers13%DREAM Outlook: Plan for the best, optimistic will enjoyretirement but less so about financial preparationfor retirementFINANCIALPERSONALITY TRAITS Value: Creativity, success, do goodMedian HH Income 62K Expect: To be more active, adaptableMedian HH Assets 38K Concerns: Healthcare, having enough savings,risk of financial surpriseDECIDE Basis for Decisions: Instinct, family and friendrecommendations Trust: Friends and family Advised: 19%FinancialProductsAnticipatedSources ptimistic,sunnyoutlook25%31%65%29%Soc. %14%13%4%AgeFamiliarity, Interest Low familiarity, moderate interest;in Annuities 63% Swing Risk Profile: low to noneGenderSOURCES OF FINANCIAL INFORMATIONDO Plan: Set of goals or direction or no plan Knowledge: Basic understanding of retirementplanning but not comfortable Actions: Don’t spend much time on retirementplanning, few have calculated what they will needfor PRPBS18%Forbes12%14%10%NYTFortune3%Yahoo Finance Google Finance The Street Extroverts Moderately conscientious Moderately open to new ideas4%4%KiplingerBarron’s2%2%Seeking AlphaHerMoneyEthnicity/RaceEducationWork Status25-3435-4445-5455-6465-7526%23%20%21%11%57% Female71% White Non- Hispanic22% Hispanic18% BlackLower: 46% HS or Less55% Full-time14% Part-time17% Retired20Proprietary & Confidential Alliance for Lifetime Income All rights reserved

“I feel fairly confident I will enjoy my retirement years, but I knowthat things can go off track easily, especially in uncertain times. Ihave worked deliberately to prepare by doing financial research andplanning to set up financial goals although I do find that I have somequestions. I know Social Security and my pension will only provide aportion of what I need in retirement so I have saved in other waysand hope it will be enough. I would trust a financial advisor to help.”CautiousPreparers17%DREAM Outlook: Prepare for the worst. Stick to tried andtrue way of doing things Value: Being prepared, secure, healthy inretirement Expect: To spend more time alone, less timecaring for others in retirement Concerns: Healthcare costs, risk of financialsurprises, market volatilityDECIDE Basis for Decisions: Do own research or expertopinions Trust: Financial advisors Advised: 35%FINANCIALPERSONALITY TRAITSMedian HH Income 88KQuiet,predictable,andsteadfastMedian HH Assets AnticipatedSources ofRetirementIncomeSoc. MOGRAPHICS31%25%15%20%4%AgeFamiliarity, Interest Moderate familiarity and interest;in Annuities 58% Swing Risk Profile: BalancedDOGenderSOURCES OF FINANCIAL INFORMATION18% Plan: Most have set of goals or direction in mind ifnot a well-developed planBroadcast56% Knowledge: Know some about retirementplanning but still have questionsPublication43% Actions: Spend time on retirement planning,some have calculated what they will need NCNBCBloombergMSNBC16%Forbes7% Introverts Conscientious, prepare for theworst Prefer to stick to the familiarand avoid Yahoo Finance Google Finance The ng AlphaHerMoneyWork Status25-3435-4445-5455-6465-7515%16%25%23%20%56% Male79% White Non- Hispanic13% Hispanic11% BlackHigher: 40% Bachelor’s degree or higher56% Full-time5% Part-time27% Retired21Proprietary & Confidential Alliance for Lifetime Income All rights reserved

“I haven’t really thought much about retirement planning becauseI’m focused on managing my current financial challenges. I worrythat I won’t have enough, but really hope Social Security cancover me by that point or I can turn to family for help. I’ll adaptone way or another. I will probably talk with my family to see whatthey think, but at this point I seriously doubt I will have enoughincome to last my lifetime.”UncertainStrugglers29%DREAM Outlook: Prepare for the worst. Low expectationsfor ability to enjoy retirement Value: Health, but it’s a struggle, want to bephysically able to do things and get in control overlife direction Expect: To be adaptable and take things as theycome in retirement Concerns: Not enough savings/assets,healthcare costs, no lifetime incomeDECIDE Basis for Decisions: Instinct, family and friendrecommendations Trust: Family or no one Advised: 6% Risk Profile: Not relevant or noneDO Plan: Don’t have any kind of planFINANCIALPERSONALITY TRAITSMedian HH Income 43KMedian HH Assets nticipatedSources ofRetirementIncomeSoc. iarity, Interest Low familiarity and interest;in Annuities 63% SwingGenderSOURCES OF FINANCIAL INFORMATION16%Broadcast35%Fox Knowledge: Don’t know much about retirementplanningPublication23% Actions: Don’t spend any time on retirementplanning; very few have calculated what they willneed for plingerBarron’s1%Yahoo Finance Google Finance The Street 1%1%Seeking AlphaHerMoney Expect things to go wrong Stick to what I know Least conscientiousEthnicity/RaceEducationWork Status25-3435-4445-5455-6465-7521%23%21%21%15%61% Female74% White Non- Hispanic20% Hispanic13% BlackLower: 56% High school or less39% Full-time9% Part-time22% Retired22Proprietary & Confidential Alliance for Lifetime Income All rights reserved

“I look forward to enjoying a good retirement and I have laid thegroundwork to be comfortable financially as long as marketvolatility doesn’t throw me off my plan. I’ve done both my ownresearch and consulted my advisor and feel comfortable that I havedeveloped a good plan. I am confident my plan will provide me withadequate retirement savings for my lifetime.”PurposefulPlanners12%DREAM Outlook: Prepare for the worst but optimisticabout ability to enjoy retirement Value: Having a well-rounded life and makingtime for fun in retirement Expect: To enjoy managing finances more inretirement Concerns: Healthcare costs, risk of financialsurprise, market volatilityDECIDE Basis for Decisions: Expert opinions or ownresearch Trust: Financial advisors Advised: 55%FINANCIALPERSONALITY TRAITSMedian HH Income 125KMedian HH Assets AnticipatedSources ofRetirementIncomeSoc. eFamiliarity, Interest High familiarity and moderatein Annuities interest; 48% SwingGenderSOURCES OF FINANCIAL INFORMATION Plan: Have at least a general if not a specificfinancial plan20%Broadcast59%Fox Knowledge: Know quite a bit or feel are expertson retirement planningPublication48% Actions: Spend at least a moderate amount oftime on retirement neKiplingerBarron’s5%Yahoo Finance Google Finance The Street OptimisticConscientiousAmbivertsModerately openDEMOGRAPHICS27%28%16%18%5% Risk Profile: Balanced or moderate risksDOSelfAssuredandconfident2%1%Seeking AlphaHerMoneyEthnicity/RaceEducationWork Status25-3435-4445-5455-6465-7520%17%20%25%17%58% Male80% White Non- Hispanic12% Hispanic10% BlackHigher: 52% Bachelor’s degree or higher62% Full-time7% Part-time24% Retired23Proprietary & Confidential Alliance for Lifetime Income All rights reserved

“I know I will enjoy my retirement when it comes but I’m in nohurry. I have put a lot into my 401k and researched and sought outa range of ways to invest. I am always looking for new optionsfrom financial experts so I can be confident I will be well-fundedthrough my lifetime. I get ideas from a broad range of sources andbounce my ideas off others, so I don’t miss new opportunities togrow my assets.”AmbitiousRisk-Takers28%DREAM Outlook: Always plan for best; open to new anddifferent opportunities, very outgoing; highlyoptimistic both in life and about retirement Value: Achievement, adventure and excitement,doing good Expect: To be strategic in retirement, also to bemore engaged and care for others Concerns: Healthcare costs, risk of financialsurprise, market volatilityDECIDE Basis for Decisions: Own research Trust: Financial advisors Advised: 43% Risk Profile: Balanced to substantialDO Plan: At least a general if not a specific financialplan Knowledge: Know quite a bit or feel are expertson retirement planning Actions: Spend time on retirement planning; havecalculated what they will need for retirementFINANCIALPERSONALITY TRAITSMedian HH Income 125KSuperchargedconfidentandoutgoingMedian HH Assets AnticipatedSources ofRetirementIncomeSoc. HICS27%27%17%17%Age5%GenderSOURCES OF FINANCIAL hly social extrovertsHighly confidentConscientious; imaginativeLook for new and differentopportunities80%60%Familiarity, Interest High familiarity and interest;in Annuities 56% Swing20% 16%13%MSNBC10%NYTFortune4%Yahoo Finance Google Finance The Street7%5%NPRPBS5%5%KiplingerBarron’s2%1%Seeking AlphaHerMoneyEthnicity/RaceEducationWork Status25-3435-4445-5455-6465-7528%21%20%18%13%54% Male72% White Non- Hispanic19% Hispanic14% BlackHigher: 52% Bachelor’s degree or higher72% Full-time7% Part-time15% Retired24Proprietary & Confidential Alliance for Lifetime Income All rights reserved

Summary of the SegmentsBuoyant in their outlook on life,these individuals want to achievegreat things for both themselvesand society and are confident intheir ability to plan for afinancially secure rs12%Individuals who enjoy leadingwell-rounded lives who spendconsiderable time and energy toensure that they can afford thesame lifestyles in retirement.Creative and open-minded,these individuals want to dogood for society, and are hopefulthat they will enjoy retirement,but are uncertain of how tofinancially prepare for ainStrugglers29%Individuals who aspire to gaincontrol over the direction of theirlives and expect to take things asthey come in retirement to theextent that they don’t have afinancial plan for it.Individuals who adhere to triedand-true practices in life,including when planning for afinancially secure retirement, butare concerned about the risk ofcostly surprises.25Proprietary & Confidential Alliance for Lifetime Income All rights reserved

4. Primary PLI Measures bySegmentOn several primary study measures there arenotable differences by segment.Three quarters of Purposeful Planners, andAmbitious Risk-Takers, and two-thirds ofCautious Preparers think their savings andsources of income will last for their lifetimes.Only half of Optimistic Dreamers and onequarter of Uncertain Strugglers think theirsavings and income will last.Correspondingly, Uncertain Strugglers are themost anxious their savings may not provideenough to live on in retirement.26Proprietary & Confidential Alliance for Lifetime Income All rights reserved

56% of Americans think their retirement income will last their lifetime:that number rises to 78% for Purposeful Planners and 75% for Ambitious Risk-Takers.Think retirement savings and sources of income will last for lifetime Yes 67% 33% 76% 24% 78% 75% 22% 25% Arrows to the right of a number indicate it is statistically significantly different (higher or lower ) compared to all other segments.27Proprietary & Confidential Alliance for Lifetime Income All rights reserved

All segments display some form of anxiety that their savings may not provideenough to live on in retirement; Uncertain Strugglers are most anxious.Anxiety savings will provide enough to live on for rest of lifeOptimisticDreamers14% CautiousPreparers11% -Takers34% 12% 32%22%36% 10% Somewhat anxious Moderately anxious Extremely anxious24%22%20%40% 23% Not at all anxious27% 27% 14% 36%30% 36%30% Arrows to the right of a number indicate it is statistically significantly different (higher or lower ) compared to all other segments.28Proprietary & Confidential Alliance for Lifetime Income All rights reserved

Four out of ten Americans have protected income in the form of a pension or annuity;three of the segments have more than half with protected income.Protected Lifetime Income (Pension or Annuity) Yes, Have Protected Lifetime Income No Protected Lifetime IncomeOptimisticDreamers31% nersAmbitiousRisk-Takers69% 53% 47% 83% 17% 58% 52% 42% 48% Arrows to the right of a number indicate it is statistically significantly different (higher or lower ) compared to all other segments.29Proprietary & Confidential Alliance for Lifetime Income All rights reserved

More than six out of ten Americans don’t understand annuities.Purposeful Planners and Ambitious Risk-Takers are most likely to understand them.Understand annuities and role they play in retirement plan Very wellOptimisticDreamers9%CautiousPreparers7% -Takers Somewhat well Not very well28%35%36% 2% 11% 14% 18% Not at all28%37% 31%21% 57% 43% 37% 29%31%13% 13% Arrows to the right of a number indicate it is statistically significantly different (higher or lower ) compared to all other segments.30Proprietary & Confidential Alliance for Lifetime Income All rights reserved

Among those who don’t have annuities currently, nearly half are at least somewhatinterested in investing in annuities as part of their retirement plan. Ambitious RiskTakers demonstrate the most interest.Level of interest in investing in annuities as part of retirement plan(Among those without annuities) Very interestedOptimisticDreamersCautiousPreparers9%3% PurposefulPlanners12% Not very kers Somewhat interested30%41%29%32% 36% 31%46% 18% 23%29%37%14% Not at all interested21%26%15% Arrows to the right of a number indicate it is statistically significantly different (higher or lower ) compared to all other segments.31Proprietary & Confidential Alliance for Lifetime Income All rights reserved

APPENDIX: METHODOLOGYDETAILS32Proprietary & Confidential Alliance for Lifetime Income All rights reserved

Protected Lifetime Income Study MethodologyThis general population study has a robust sample size allowing for the creation of segmentsthat center on retirement preparation and measure many aspects of retirement.ParticipantsN 3,036Online Quantitative StudyNationalField DatesAugust 6 - 21, 2020For context: Dow Jones Industrial AverageGeneral Specifications1. Age 25 to 742. Census balanced on age, gender, income, education,race, Hispanic ethnicity and region3. Data was weighted (on age, gender, income,education, race, Hispanic ethnicity and region)4. 20% are retired (fully or partially)Survey and Segmentation Analysis conducted byArtemis Strategy ry & Confidential Alliance for Lifetime Income All rights reserved33

Methodology: Segmentation Analysis The analytical process involved iterati

The Protected Lifetime Income Study is the Alliance for Lifetime Income's primary public release research. . national adult population provides an in-depth look at Americans' financial views, preparation, and aspirations for retirement. It tracks the proportion of Americans reporting that they have a source of Protected Lifetime Income .