Across the Globe, Baby Boomers Ready Themselves for Retirement, Yet Challenges Await in Making Their Vision a Reality.

The Hartford's new research on retirement in the U.S., Europe and Asia finds a 'crisis of confidence' over how to prepare for retirement or where to turn for help

SIMSBURY, Conn. -- The world is aging as hundreds of millions of Baby Boomers and Depression-Era adults across industrialized nations such as the United States, Europe and Asia are approaching retirement or are already retired. Many aspire to fill their "golden years" with leisure activities, travel, charitable acts and, increasingly, gainful employment.

Not so fast. New research from The Hartford Financial Services Group, Inc. (NYSE: HIG) shows that many middle-aged and older adults have serious concerns about their financial security in retirement, are doing little to improve their financial picture and, in many instances, don't know where to turn for help. The Hartford's second-annual international retirement survey, conducted this summer by independent research agency Opinauri, polled more than 6,500 consumers aged 45 and older in the U.K., U.S., Germany, Japan and South Korea.

"Around the world, adults who've worked their entire lives have differing visions of what they want their retirement to look like, yet unfortunately they struggle to make that vision a reality" said Liz Zlatkus, Hartford Life co-chief operating officer and president of its international wealth management division. "The Hartford's research points to a tremendous need for financial education and professional advice about investing for long-term goals."

Consumers across three continents and five countries expressed common concerns about having sufficient financial resources to live comfortably and securely in retirement:

* Overwhelmingly, respondents say they have at least some concerns about having enough money in retirement. In Japan, nearly nine in 10 people (87 percent) have at least some concerns and 52 percent are "extremely" or "very" concerned. A similar picture exists in the U.S., U.K., Germany and South Korea, where 79, 66, 69 and 65 percent, respectively, indicate at least some level of concern about having enough money in retirement.

* Despite concerns over finances, few people have taken action to improve their financial position for retirement in the past year. That is true for seven out of 10 people in both Japan and South Korea. Many people in Germany (62 percent), the U.K. (51 percent) and the U.S. (42 percent) confirmed they were treading water financially as well.

Perhaps a key reason why so many people are worried about their future prospects -- but are doing little about it -- is a crisis of confidence. Few people feel they have a firm grip on planning their financial future, many don't know where to turn for help, and still more describe themselves as risk averse:

* Many people across the world are risk averse when it comes to investing. People in South Korea (79 percent), Japan (69 percent) and Germany (71 percent) are highly risk averse. The U.K. (59 percent) and the U.S. (41 percent) were also risk averse but to a lesser degree.

* Increasingly, people say they do not know where to turn when it comes to obtaining credible financial advice. That sentiment increased in 2007 from 2006 in Japan (44 percent vs. 38 percent), the U.S. (27 percent vs. 19 percent) and the U.K. (16 percent vs. 13 percent). South Koreans (35 percent) say much the same.

* Few people in Japan sought professional investment advice. The No. 1 source for financial advice and information in Japan was the news media (33 percent), with friends and relatives (19 percent) coming in second. Financial planners and accountants were sought out by just 9 percent and banks 11 percent.

While The Hartford's survey showed that people approaching retirement in the industrialized nations think similarly on many financial issues, it also uncovered some important differences:

* Having enough money to enjoy one's life is cited as a key concern in the U.K. (46 percent) and the U.S. (43 percent) but much less so in Germany (25 percent), Japan (24 percent) and South Korea (12 percent).

* Affording health care is a major concern in South Korea (62 percent), Germany (30 percent), the U.S. (28 percent) and Japan (26 percent) but much less so in the United Kingdom (7 percent) where most people have access to publicly financed health care.

* Respondents were split on how confident they were about whether all their sources of retirement income, when combined, would be sufficient. Three in four Japanese said they are less than confident compared to 44 percent in the U.K. The level of concern ratcheted up dramatically in the U.S. rising from 28 percent in 2006 to 40 percent in 2007.

The Hartford's survey also highlighted a major global trend that many people plan to continue working in some capacity while retired, some for the foreseeable future. In the U.S., for instance, one in two people say they plan to work in their current job as long as possible, slow down but continue working, or start a business or other venture while retired.

Still, retirement continues to be viewed by most people as a time for leisurely pursuits or charitable endeavors. This is especially true in Europe where more leisure time was a big goal for many in the U.K. (66 percent) and Germany (59 percent) as well as Japan (58 percent) and the U.S. (54 percent). However, only one in 10 Koreans equates retirement with more down time.

"How a person moves into and lives in retirement is an intensely personal issue, and people across the globe have their own aspirations and goals for their later years in life," Zlatkus said. "No matter where you live, though, you need to prepare financially for this different and important phase of life."

"In every market The Hartford serves, we are working with financial professionals to help people understand the long-term financial challenges that retirement brings and prepare accordingly," Zlatkus explained. "We are focused on meeting the financial needs of retirees in the U.S., U.K. and Japan."

According to Zlatkus, The Hartford is not just introducing products, but also educational resources to show how they can fit into the financial plan. She said the firm introduced a team of retirement solutions consultants (RSCs) in the U.S. as a resource to help educate financial professionals and investors about preparing for retirement. The RSCs focus on holistic financial planning concepts rather than financial products.

The Hartford, a Fortune 100 company, is one of the nation's largest diversified financial services companies, with 2006 revenues of $26.5 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is www.thehartford.com.

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include, without limitation, those discussed in our Quarterly Reports on Form 10-Q, our 2006 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

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