Why Women Worry(SM): New Research from The Hartford and the MIT AgeLab Identifies Inflation, Health and Longevity as Major Retirement Worries for Women

The Hartford Financial Services Group, Inc. (NYSE: HIG), through its Advance 50 Team of corporate financial gerontologists, and the MIT AgeLab recently joined forces to explore how men and women perceive retirement and worry (or don’t) about what it may mean for them. Findings showed that women worry much more about many aspects of retirement, and identified primary areas of concern. Today, they unveil results from this nationwide survey of pre-retirees and retirees on retirement attitudes and emotions and suggest proactive steps women can take to turn angst into action. WOMEN ARE WORRIED, WITH GOOD REASON In November and December of 2007, researchers conducted telephone interviews with 1,194 pre-retirees and retirees between the ages of 45 and 74. A retirement concerns scale gauged men and women’s level of concern. Results show that women are well aware of the specific retirement risks they face. They out-worry men in every category except about being bored in retirement where men slightly outpace women. Top concerns fall into three areas: Inflation. Women worry about their purchasing power in retirement. 83 percent surveyed are very or somewhat concerned that the general cost of living in retirement will grow faster than their income, versus 69 percent of men. Health. Women worry about declining health. 75 percent were very or somewhat concerned. And concerns about health go hand-in-hand with concerns about the rising cost of healthcare, with 87 percent of women worried. Longevity. Longer life means greater inflation risk. 64 percent of women are very or somewhat concerned about outliving their retirement assets versus 46 percent of men. "While our research shows that men worry more about having enough to do in later life, aging is a woman’s world,” said Dr. Joseph Coughlin, founder and director of the MIT AgeLab. "She is likely to outlive her male counterpart, remain active longer, and be responsible for caring for him and others – so it only makes sense that she is more worried about how she is going to live than about what she is going to be doing.” Added Stephanie Chappell, corporate financial gerontologist and part of The Hartford’s Advance 50 Team, "Women’s worry is well placed. They are well aware of the risks and are concerned about the right things. They’ll likely live longer than men, yet have less retirement income (according to the Women’s Institute for a Secure Retirement, women’s median retirement income is only 58 percent of men’s). Even for married women, a newly widowed woman’s income decreases by 50 percent on average, yet expenses only decrease 20 percent according to LIMRA. In addition to facing cash flow challenges, women are often a caregiver to aging parents, spouses or loved ones. And when financial advisors have traditionally focused on the male spouse, it’s no surprise women are anxious about their finances later in life.” TURNING ANGST INTO ACTION Although women surveyed by The Hartford and the MIT AgeLab were somewhat less anxious about managing their nest egg in retirement compared to other factors, with 36 percent very or somewhat concerned, this was nearly double the amount of men (19 percent). "Because of women’s unique challenges, it only makes sense that they are worried about long-term financial matters.” said Eric Waller, a Retirement Solutions Consultant with The Hartford. "An adequate level of worry is helpful, provided it motivates us toward a change in long-term planning and lifestyle habits and behaviors. Women can turn ‘non-productive worry’ into ‘productive worry’.” Waller recommends three basic areas: Build a Safety Net. Greater longevity for women means greater risk that inflation and cash flow needs will eat away the retirement nest egg. Women have a much greater risk of outliving their spouse and, since Social Security and pension benefits are tied to earnings, end up with lower levels of guaranteed income. It is especially important for women to investigate guaranteed retirement income sources such as annuities and protect their income while working and in retirement through vehicles such as life, disability and long-term care insurance. Plan for Growth. Worry can lead to fear, which can lead us to invest much too conservatively, particularly during volatile market periods. To prepare for what will likely be a much longer retirement, women should start investing early in a wide variety of retirement savings vehicles and a wide variety of asset classes, both individually and through their employer. And, because women tend to spend fewer years in the workforce, it’s essential to start saving as early as possible. Take Care of You. Women often take care of everyone else, but it’s just as important that they take care of their own financial and physical health. Even though they’re juggling many priorities, women need to stay involved in the financial planning process, either solely or with their spouse, and stay informed about their retirement finances. Investing in health and wellness can also pay off financially, by potentially avoiding the onset of chronic illnesses and associated doctor bills. "Of course, these strategies won’t solve everyone’s worries, and every situation is different,” noted Waller. "But women’s focus on the long-term is a key strength. Most important, a qualified financial advisor can help to ensure that both spouses are actively engaged.” SPECIAL CONFERENCE CALL TO DISCUSS WHY WOMEN WORRYSM FINDINGS Hartford gerontologists and retirement experts with special guests from the MIT AgeLab will present findings from the "Why Women WorrySM” research in more detail and answer any questions in a special conference call for the media on Tuesday, July 22 from 4-5 PM eastern time. Media are invited to join the call at 1-866-214-0324 (Conference ID = 54288795). ABOUT THE HARTFORD & MIT AGELAB The Hartford is one of the few companies in the United States with in-house experts on business and aging. For over 23 years, The Hartford has employed gerontologists to work across the company’s insurance and investment business lines to help develop industry leading programs and services for the mature market. This group of nine experts is called the Advance 50 Team. The Hartford has enjoyed a research collaboration with the MIT AgeLab since 1999, when MIT started working with the company’s property and casualty division. In 2006, this partnership was extended to The Hartford’s retirement initiatives. The purpose of the collaboration is to gain greater insight and understanding into the challenges facing Americans as they age, and to apply this understanding to the delivery of financial planning products and services to meet the needs of its customers. The AgeLab’s multi-disciplinary team has developed unique methods, facilities and data that place it at the forefront of innovation in transportation, health and wellness, aging and longevity planning. The AgeLab’s Internet address is http://web.mit.edu/agelab. "Why Women WorrySM” is part of a series of retirement-related research findings being published by The Hartford and MIT AgeLab. The series began in February of this year with the "Power of Two” findings on issues around couples, communication and financial planning. The Hartford, a Fortune 100 company, is one of the nation’s largest financial services and insurance companies, with 2007 revenues of $25.9 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business and property and casualty insurance. International operations are located in Japan, the United Kingdom, Canada, Brazil and Ireland. The Hartford’s Internet address is www.thehartford.com. HIG-L 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 those discussed in our Quarterly Reports on Form 10-Q, our 2007 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. "The Hartford” is The Hartford Financial Services Group, Inc. and its subsidiaries. MIT AgeLab is not an affiliate or subsidiary of The Hartford. Remarks by Hartford and MIT AgeLab experts are made in connection with the promotion or marketing of the matters discussed and are not intended to provide financial advice. As with all financial planning matters, you should consult a professional for advice.