A Nation of Worriers Frets About Retirement; Allstate survey shows Americans concerned about health, money and terrorism.

NORTHBROOK, Ill. -- When Americans look forward, they see a future fraught with peril. Accordingly they worry--about terrorism, about their families and about their health. Above all, as they consider retirement, they worry that despite their best efforts, they simply won't be able to save enough money.

These are just some of the responses from the 2005 Allstate "Retirement Reality Check" survey. The fifth annual survey, which tracks Americans' attitudes toward and savings for retirement, showed that 70 percent of respondents admit to being "concerned about the future"--and 22 percent said they are "very" concerned.

What are people so worried about?

The top two answers, according to the survey, were terrorism and saving for retirement, both cited by 55 percent of respondents. Those issues eclipse other worries, including family, cited by 43 percent; current finances, 38 percent; getting into an accident, 33 percent; and health, 30 percent. Only 22 percent said they worry about their careers.

"Many of these issues, such as one's health or career, are things we as individuals can control to a large extent," said Casey Sylla, president, Allstate Financial, a business unit of The Allstate Corporation. "Perhaps that is why they rank so far below terrorism, which is top-of-mind because of constant media coverage, but not within most people's control."

Control provides comfort

"What surprised us is that people said they worry equally about terrorism and saving for retirement," Sylla added. "Our message is that savings habits clearly are within people's control, which should prompt people to take steps that would heighten their confidence."

The Allstate survey showed that a majority of respondents look toward retirement with apprehension (43 percent) or outright dread (8 percent). Only 16 percent said they "eagerly await" retirement, and 30 percent expect to "enjoy" it.

At the same time, 74 percent of respondents said they consider themselves at least somewhat prepared financially for retirement.

"So why are people worried? It appears people aren't so much worried about retirement itself as they are about something they can't control--the cost of health care after retirement," said Mathew Greenwald, Ph.D., president of Mathew Greenwald & Associates, the Washington, D.C. firm that conducted the survey for Allstate. "Like terrorism, the retirement health-care issue has been discussed widely in the media, so it isn't surprising that it is on people's minds."

In fact, 65 percent of respondents said they worry about their ability to afford health care after retirement. Even 57 percent of those who "eagerly await" retirement cite this concern, as well as 50 percent who say they are "very prepared" financially.

Uncertainty, reliance on others fuels concerns

Other top retirement concerns also were health- or money- related. For example, the other most-mentioned concerns were not being able to care for oneself, listed by 58 percent of respondents; the possibility of Social Security benefits being cut or eliminated, 57 percent; and not having enough money, 50 percent.

While these worries were cited across the board, they are strongest in people who dread retirement and those who admit they are not financially prepared for retirement.

Beyond health care, people who have saved the least see a clear link between lack of money and quality of life after retirement.

For example, 70 percent of those who said they are not financially prepared for retirement say that, by not saving more now, they run the risk of being forced to work longer or work in retirement. Overall, 49 percent of respondents said that, and only 20 percent of those who described themselves as "very" prepared financially for retirement.

Similarly, 64 percent who "dread" retirement said that, versus 33 percent who "eagerly await" retirement.

Overall, about half of respondents--49 percent--said they risk having to cut back on their lifestyles after retirement if they don't save more money now. Among respondents who admit they are not financially prepared for retirement, 70 percent said they risk having to cut back on lifestyle. But of the respondents who described themselves as "very" financially prepared for retirement, only 20 percent said they risk having to cut back.

A significant number of respondents said that, by not saving more money now, they risk being forced to turn to social services after retirement (28 percent), or to rely on family members for financial support (23 percent).

"The link between financial security and people's comfort level about retirement is quite clear," Sylla said. "The consequences of lack of money--having to work, having to rely on family, even having to rely on social services--likely is the source of people's apprehension and dread about retirement. "

"The good news is that this is largely within individuals' control, and they have the opportunity to do something about it," he added. "The survey clearly shows that, the more people have prepared themselves financially, the more positive and confident they are. So people should consider their fears a call to action to take concrete steps to address those financial concerns."

Allstate created the fifth annual "Retirement Reality Check" survey in conjunction with Mathew Greenwald & Associates. Using a random digit dialing methodology, Greenwald & Associates polled 1,601 people born between 1946 and 1978, with household incomes of $35,000 or more. Retirees were accepted with incomes of at least $20,000. The margin of error (at the 95 percent confidence level) for the total number of respondents in this study is +/-2.5 percent, +/-3.8 percent for information specific to Gen Xers, +/-4.5 percent for Baby Boomers.

Allstate Life Insurance Company, Lincoln Benefit Life Company and American Heritage Life Insurance Company (Allstate Workplace Division) are proud members of the Insurance Marketplace Standards Association - IMSA. Our membership signifies our commitment to honesty and fairness in the sales and service of individually sold life insurance and annuity products.

The Allstate Corporation (NYSE:ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 13,600 exclusive agencies and financial professionals in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate(R). Encompass(SM) and Deerbrook(R) Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.