Ameriprise Financial (NYSE:AMP) today released the findings of its most recent research, The 2007 Ameriprise Workplace Financial Planning Benefit Decisions study, recording mounting stress and worrying trends in employee benefit decisions leading into fall’s open enrollment season. The study found that sources of financial stress have increased considerably for U.S. workers since 2005. Recording increased stress in every category measured, the study found that the highest stress factors continue to be saving for retirement and paying for health care in retirement.

“The findings indicate that while most people recognize their future retirement needs, they are unable to find and apply strategies to meet those challenges to alleviate their financial stress level and increase their confidence,” said Rusty Field, vice president – AmeripriseSM Workplace Financial Planning. “This can lead some to cut back on their retirement saving, impacting their future retirement security.”

Workers continue to make perilous trade-offs with their benefit dollars. Decreasing overall saving and investing continues to be the second most popular response mechanism for increased out-of-pocket benefit expenses (46 percent), consistent with prior findings and higher than all other options in 2007 except reducing discretionary spending (61 percent).

“Near-term health care coverage continues to be a non-negotiable benefit for many when pitted against long-term saving for retirement,” said Field.

The study found benefit cost increases tied to health care are having both a short-term and long-term impact on workers’ perceptions of their financial health. More than 40 percent report an impact on their financial health and stress levels related to increases in their health care insurance costs. And 44 percent feel that increasing benefit costs will impact their ability to fund retirement and other financial goals, with better than one in four very concerned.

“As employer-paid benefits such as pensions and retiree health care go by the wayside, employees increasingly confront a confusing nexus of financial decisions related to retirement plans, health insurance and other benefits on an annual basis,” said Field. “Many are increasingly recognizing how financial planning can be of assistance in making effective and balanced choices.”

• Nearly nine in 10 (89 percent) respondents believe a financial plan that directly addressed their workplace benefit costs and contingent financial decisions would be helpful.
• Better than two of three employees (70 percent) would be moderately or very interested in one-on-one financial planning if offered through their employer.
• And more than four of five employees (81 percent) would take advantage of a financial planning option if their employer paid for a portion of it as part of the employee benefits package.

An employer-sponsored financial planning benefit option is also believed to have positive effects on workplace morale-related issues and would increase confidence in decision making regarding benefits:

• For example, employees overwhelmingly believe that a financial planning benefit would make them feel their employer recognizes and values their effort in the workplace (87 percent).
• A similarly high percentage of workers indicate it is moderately or very important that they feel valued and recognized by their employer through the benefits offered in the workplace (83 percent).

According to the study, less than one in five workers have a written, professionally prepared and paid-for financial plan. Those who lack a financial plan are more likely to cut back on their saving and investments in company-sponsored plans when confronted with increases in out-of-pocket benefit expenses. Of those facing one or more benefit cost increases, 54 percent of those without a financial plan would reduce their retirement savings level, compared with 46 percent of those with a financial plan.

The study also found that financial planning helps employees get an earlier start with saving and investing in their company-sponsored retirement plans, and that they are more likely to contribute substantially throughout their life cycle. The percentage of employees contributing six percent or more to their 401(k) retirement plan increased in all age groups, but most dramatically for those under 35 years old, which increased from 35 percent to 46 percent.

A complete survey report is available up on request by emailing ameriprisefinancialeducation@ampf.com or calling (800) 437-0600.

About the Survey

The 2007 Ameriprise Workplace Financial Planning Benefit Decisions study is a new composite study combining elements of its past Benefits Cost Increase and Financial Stress research, with data on workplace financial planning benefit trends. The resulting study continues to measure key historical metrics related to benefit costs and financial stress and their impact on retirement saving and investing.

Synovate’s Telenation Survey service was used for all periods of data collection in the second quarter of 2007. The survey population consisted of U.S. workers with available employer-sponsored 401(k) retirement plan and health care insurance benefits. A telephone study among 617 consumers was completed (after weighting). Respondents included those with access to employer sponsored health insurance and enrollment in (or eligibility for) a 401(k) retirement plan through their employer.

About Ameriprise Financial

Ameriprise Financial is a leader in workplace financial planning providing corporations and other institutions with a broad spectrum of employee financial education and financial planning programs to help improve benefits utilization and the financial lives of employees. The Ameriprise Workplace Financial Planning unit serves more than 1,600 companies and their approximately 1.8 million employees across the United States.

Ameriprise Financial, Inc. is a leading financial planning and services company with more than 12,000 financial advisors and registered representatives that provides solutions for clients' asset accumulation, income management and insurance protection needs. The Company's financial advisors deliver tailored solutions to clients through a personalized financial planning approach built on a long-term relationship with a knowledgeable advisor. The Company specializes in meeting the retirement-related financial needs of the mass affluent and affluent.

Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC. CA License #0684538. For more information, visit ameriprise.com.

For more information or to schedule an interview, contact Todd Wold, Media Relations, at 612-671-6583 or todd.wold@ampf.com.

© 2007 Ameriprise Financial, Inc. All rights reserved.

First use: 8/07