Legal Needs of Todays Multi-Generational Population

Research Study Conducted by Russell Research Commissioned by ARAG

March 2012

Legal Issues Aect All Generations

For the rst time in history, four soon to be ve generations of adults are working together in corporations and small businesses across America Silents, Baby Boomers, Generation X and Generation Y. While a texting 20-something and a nearlyretired 60-something appear to have about as much in common as Justin Bieber and Kenny Rogers, they are actually quite similar when it comes to personal legal matters. Individuals of all ages have many legal concerns and experiences that bridge the generation gap. People also share a common desire for security and protection against legal needs that can aect their personal well-being and work-life balance.

The Study
A national study titled Legal Needs of Todays Multi-Generational Population (Generations) reports an overwhelming majority of Americans are concerned about personal legal matters and have experienced one or more legal need in the past year. The Generations Study was commissioned by ARAG, a global provider of legal solutions, and conducted by Russell Research in March 2012. The study examined the concerns, experiences and legal service preferences of 1,682 Americans making up the four generations in the current workforce. Generation Y (born 1978-1989) Generation X (born 1965-1977) Baby Boomers (born 1946-1964) Silent Generation (born before 1946)

The results of the Generations Study are summarized in this document.

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All Generations Worry About Legal Issues

Legal Life Concerns

1. Purchase or lease automobile 2. Remedy identity theft 3. Create Will, estate plan or Trust 4. Care for aging family member 5. Deal with death of immediate
family member

6. Address stolen credit card 7. Experience credit card trouble or debt collection 8. Receive ticket for moving violation 9. Hire contractors to work on residence 10. Execute estate

While the multi-generational population represents diering personal needs and life events related to family, health and nancial or legal concerns, ARAGs Generations Study reports that people of all ages worry about some of the same issues. A main legal concern of all generations is identity theft. No matter how old you are, you are fearful of your personal information being stolen. What else are Americans of all ages worried about? According to the Generations Study, the areas of greatest concern are nancial matters (such as creation or modication of a Will, living will, power of attorney, estate plan or Trust), family matters (caring for or death of a family member and execution of an estate plan) and automobile-related issues.

Financial Planning
Estate planning needs resonate most with Baby Boomers, while credit matters and renting an apartment are bigger concerns for Generation Y.

Family Issues
Family-related concerns seem to reect life stage dierences. The younger Generation Y group is more concerned about marriage and having children, while Baby Boomers are dealing with executing an estate plan and the death of an immediate family member.

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Home Concerns
Leading home-related concerns include the purchase, sale, rental or repair of property. Generation Y is primarily concerned about buying or selling a house; Generation X about renancing a home and hiring contractors; and the Baby Boomers and the Silent Generation about selling a primary residence or hiring contractors.

Auto Problems
Automobile-related concerns are fairly consistent across the four generations. Their biggest concerns are vehicle repairs, purchase, lease or sale, as well as trac violations. Generation Y is more likely than any generation to have auto-related concerns.

All Generations Suer From Legal Issues

people 3 out 4 d at least nce experie l life event in a g one le past year. the

ARAGs study Measuring the Eects of Employee Financial & Legal Woes1, conducted by Russell Research and commissioned by ARAG, March 2012, reported 74 percent of individuals experienced at least one legal life event in the past 12 months. This is up from 69 percent2 when the study was rst conducted in 2007. Among those who experienced an event, 40 percent experienced four or more legal life events in the past year. This number rose dramatically from 28 percent in 2007. Interestingly, some of the legal issues experienced in the past 12 months are not the legal matters Americans are concerned about. For example, all four generations expressed concern about identity theft, but it was not in the top 10 experiences. The Generations Study found credit problems and estate and nancial planning issues to be the nancial-related legal needs that Americans most often experience. Baby Boomers family-related needs involve the care of an aging family member or dealing

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with a death in the family. Generation Xs top issues include birth of a child or custody issues, and Generation Y is getting married and having children. The leading homerelated legal experiences are apartment rental for Generation Y and X, and dealing with home contractors for Baby Boomers and the Silent Generation.

Legal Life Experiences

1. Purchase or lease auto 2. Hire contractors for work on residence 3. Care for aging family member 4. Experience credit trouble or debt collection 5. Deal with death of immediate family member

6. Create or update nancial plan 7. Receive ticket for moving violation 8. Rent apartment 9. Sell auto 10. Renance house

Connecting with Legal Professionals by Generation

When asked how they would prefer to communicate with legal professionals when receiving legal counsel and document work, seven out of 10 people would prefer face-to-face interaction. Communication by telephone was also favored followed by receiving legal services by email. Generations X and Y are most open to communicating with an attorney or paralegal by alternative forms of communications such as texting, internet and instant messaging. This is not surprising considering Gen Y grew up on computers with cell phones in their hands. While Gen X prefers face-to-face interaction, they also show a larger interest in alternative communications compared to the two older generations. This interest has increased notably since the Generations Study was rst conducted in 2008. Baby Boomers and Silents show much less interest and openness to nontraditional communication methods.

s prefer of Americanm eetings e ac -f face-to al g le with professionals.

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How People Plan to Pay for Legal Expenses

ARAGs Legal Woes Study reported that legal events can be expensive, and many times these expenditures are unplanned, unbudgeted and more expensive than expected. For example, the average hourly rate in the United States for attorneys with 11 15 years of experience is $3123. Participants expect to pay $141 per hour for legal services. Thats less than half of the average cost. Generation Y expects an even lower rate. More than 40 percent of Gen Y surveyed suggested an attorney costs about $75 per hour thats about one-quarter of the real hourly attorney rate. Not only do Americans not realize how much legal help can cost, the Generations Study4 reveals that three out of four people dont have a plan to cover legal expenses. Instead they would have to nd the means to pay for legal expenses that arise. This presents a nancial challenge for many Americans. In the original Generations Study4conducted in 2008, people in their 20s and 30s were less likely to have a plan for handling legal expenses even though theyre not less likely to personally experience legal events. In 2012, the youngest generation studied has turned into better planners as they graduated from college and gained fulltime employment. Generation Y (ages 23 34) is now more likely to have a plan to cover legal events. Generation X is less likely to have a plan or means to pay for legal expenses. Both Gen X and Gen Y are interested in $ obtaining legal insurance.

urly rage ho The ave d he Unite rate in t ys e r attorn f States fo o rs 15 yea . with 11 2 1 3 ce is $ experien

Legal Fees

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Legal Plan Protects Every Generation

ARAGs 2012 Generations Study established that individuals of all ages have many legal concerns and experiences that bridge the generation gap. Eight out of 10 Americans are concerned about personal matters from a legal standpoint.

8 out of 10 Americans have legal concerns

Three out of four people have experienced one or more legal issues in the past 12 months. Three out of four people dont have a plan to nance legal expenses. Personal legal matters can take a heavy toll on peoples lives their relationships, job performance, workplace productivity and personal well-being. Many Americans today are addressing legal matters by enrolling in programs oering a wide range of legal solutions to meet the unique situations of every generation.

4 3 out of ced at experien legal life least one he event in t last year.

Protect Your Families, Finances and Future ARAG oers a suite of exible legal solutions including the Education Center, DIY Docs, LawPhone and UltimateAdvisor designed to meet a majority of the personal legal needs of the average American and his or her family. Members gain access to a network of attorneys and other legal resources for an aordable rate based on how they prefer to handle their legal issues. Online educational resources and legal documents, such as legally valid and state-specic wills and estate-planning papers

3 out of 4 people do nt have a plan to p ay for legal fe es.

General legal advice over the telephone, and education and referral resources for needs such as elder care, nancial counseling and identity theft Comprehensive insurance plan oering in-oce visits with an attorney and court representation Ordinary life situations have legal consequences. Access to legal choices gives individuals and their families the ammunition needed to deal with problems that are all too prevalent today, without the challenging and confusing process of individually securing help. Legal solutions oer all generations choices to plan for, prevent and resolve legal and nancial matters aecting their everyday lives.

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For more information about the aect of legal life events on people of all generations and the results of the study Legal Needs of Todays Multi-Generational Population, please visit www.ARAGgroup.com or call 800-888-4184 ext. 271.
1

Measuring the Eects of Employee Financial and Legal Woes, conducted by Russell Research, commissioned by ARAG, March 2012. Measuring the Eects of Employee Financial and Legal Woes, conducted by Russell Research, commissioned by ARAG, 2007. Survey of Law Firm Economics, The National Law Journal and ALM Legal Intelligence, July 2011.

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Legal Needs of Todays Multi-Generational Workforce, conducted by Russell Research, commissioned by ARAG, 2008.

About ARAG ARAG (www.ARAGgroup.com), whose North American operations are based in Des Moines, IA, is a global provider of legal solutions. The company has an international premium base of almost $2 billion and it protects 15.5 million individuals and their families worldwide. ARAG oers comprehensive legal plans that provide a smart and trusted path for resolving legal issues. This enables people to protect their families, nances and futures. 2012 ARAG, North America, Inc.

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