New Study Finds Americans Underestimate Life Expectancy and Amount of Money Needed During Retirement; GE Center for Financial Learning Launches Second Annual National $tart Out $aving Week.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--June 30, 2003

Americans Encouraged to Secure Their Financial Independence This

July 4th

The GE Center for Financial Learning today announced the start of its Second Annual "$tart Out $aving" Week, which runs today through July 5. As part of this national initiative, which encourages Americans to realize their financial and retirement goals, the GE Center commissioned a study called Saving During Uncertain Times that revealed some sobering results. The study found most Americans will fall short of their long-term savings goals, especially when it comes to securing a steady stream of income during retirement.

To encourage a shift in savings behavior, the GE Center created several simple examples of how small changes in handling money can result in thousands of dollars in savings.

"Americans who are not saving are jeopardizing their financial future and independence during retirement," said Derek Dingle, an advisor to the GE Center, and executive editor and vice-president of Black Enterprise magazine. "Fortunately, there is still time for many to take simple, easy steps to improve their situation. People only need to save a relatively small amount consistently to improve their financial forecast."

According to the GE Center survey, conducted by Goodmind, LLC, Americans are unprepared and at serious risk of outliving their retirement savings - endangering what should be their golden years.

Only 11% of those surveyed correctly identified the average life expectancy for someone 65 years old today to be over 85, with most respondents underestimating life expectancy by five years or more. Additionally, 57% of survey respondents over the age of 55 say they have no idea how they're going to fund their retirement, and 34% of all respondents plan to work during retirement to pay their bills. Additional findings from the GE Center's Saving During Uncertain Times survey include:

-- 39% did not believe saving 10% from each paycheck during 40

years of work would be sufficient to fund 20 years retirement;

yet

-- 31% save 5% or less from each paycheck;

-- 19% know someone who has outlived their retirement or pension;

-- 20% of all Americans have used their savings to get by this

year; and

-- Only 31% think they will have enough money for retirement

One finding clearly pointed out a lack of financial education is contributing towards American's savings shortfall: 51% of respondents said they don't know how to fund their retirement.

Perhaps most surprising, people of all income brackets are being affected by the lack of preparedness. For example, 48% of those who earn $100,000 or more annually do not know how to fund their retirement, and 25% of that same group used savings to get by this year - further cannibalizing their retirement nest egg.

To show Americans that saving money is easier than they might think, the GE Center has developed a list of "ones" - painless, easy things people can do to save money. By doing just one simple thing, and actually saving the money in an investment vehicle with moderate growth, financial dreams can become a reality quicker than most people might think. Here are 10 easy ways to save money, along with how much money could be saved if consumers did that "one thing" over 30 years*:

              Savings Initiative               Savings over 30 years*
----------------------------------------------------------------------
                                                  8%            5%
----------------------------------------------------------------------
Bring/make coffee at work instead of buying it
 daily                                          $29,453.63  $11,958.99
----------------------------------------------------------------------
Brown bag your lunch daily                     $147,268.17  $86,370.50
----------------------------------------------------------------------
Buy 5 less lottery tickets a week               $29,453.63  $17,274.10
----------------------------------------------------------------------
Eat dinner at home one more time a week,
 instead of going out to a restaurant         $176,721.81  $103,644.60
----------------------------------------------------------------------
Have one less glass of wine when out weekly     $41,235.09  $24,183.74
----------------------------------------------------------------------
Rent a movie instead of going to the theater
 twice a month                                  $21,750.38  $12,756.26
----------------------------------------------------------------------
Buy one less pack of cigarettes per week        $29,453.63  $17,274.10
----------------------------------------------------------------------
Give yourself a manicure instead of visiting
 the salon monthly                               $16,312.78  $9,567.19
----------------------------------------------------------------------
Avoiding ATM fees once a week                     $8,836.09  $5,182.23
----------------------------------------------------------------------
Save all your change - use only paper money
 daily                                          $40,781.96  $23,917.99
----------------------------------------------------------------------

*Savings over 30 years if invested in a financial vehicle averaging 8% and 5% per year, compounded annually.

Behavioral Change Leads to Financial Change

"By changing certain behaviors, saving and financial planning can become an empowering experience, not a chore," said Ginita Wall, also an advisor to the GE Center for Financial Learning and founder of the Women's Institute for Financial Education (WIFE). "Saving throughout the years is especially important for women, who tend to live longer. WIFE supports $tart Out $aving Week, and we encourage all Americans to find new ways to save money."

Some behaviors that may change the way people look at money include making saving automatic through vehicles such as direct deposit, saving for something fun, and replacing the excitement of shopping with other activities that boost self-esteem like exercising.

One of the goals of the GE Center for Financial Learning (www.financiallearning.com) is to financially empower Americans by providing objective information that helps them achieve their life goals. It does not sell financial products of services from any company, nor does it promote or advise on financial products or providers. A twelve-person volunteer advisory board upholds the high level of excellence for the GE Center for Financial Learning by ensuring the objectivity of all information on the site.

GE Financial, the developer of the GE Center, and the consumer insurance and investment arm of GE Insurance, is an integrated family of companies committed to helping people create and preserve wealth, protect assets and enhance their lifestyles.