Phoenix Wealth Survey Finds Optimism Returns to High Net Worth With Feelings of Financial Security Back to 7-Year High

America’s millionaires have regained their feelings of financial well-being and optimism, but have growing concerns about their future retirement, according to the eighth annual Phoenix Wealth Survey conducted by The Phoenix Companies, Inc. (NYSE:PNX), a leading provider of life insurance, annuities and investments. Wealthy Americans appear to have a new bounce in their step, thanks largely to the recent bull market. Eighty-one percent of those surveyed say they feel wealthier than they did last year, and more high-net-worth consumers consider their long-term wealth "extremely secure.” The survey also reveals that high-net-worth individuals are taking a more aggressive approach to investing. For the first time in six years, their appetite for return on assets equals the desire for preservation of wealth. They may need that aggressive approach to investing because long-term retirement security is their primary financial concern. In fact, a growing number of the high net worth believe they may never fully retire, in part because of their concerns about future healthcare or long-term care expenses. "The 2007 Phoenix Wealth Survey reveals the high net worth’s positive attitudes about their financial well-being as well as widespread changes in their attitudes towards retirement,” said Walter H. Zultowski, Ph.D., senior vice president, research and concept development at Phoenix. "During the bull market of the 1990s, high-net-worth individuals wanted to retire early and completely. This year, despite feeling more secure in their wealth, a larger percentage of respondents expect to keep working at least part-time.” In addition, this year’s survey found a significant discrepancy among the generations that comprise the high-net-worth market. The youngest of the high net worth – who have the greatest number of years to amass a retirement nest egg – are the most bearish about the future. Although they have more money at a younger age than their predecessors, Gen-X millionaires expressed the greatest uncertainty about their future finances as they face retirement without traditional pension plans, with Social Security benefits in doubt and healthcare costs skyrocketing. Survey Highlights Phoenix conducted the study of more than 1,800 high-net-worth households – those with net worth of $1 million of more, excluding their primary home – to stay in synch with the highly complex personal financial and business planning needs of this segment. The survey also revealed that: More high-net-worth individuals want to match or exceed their current income in order to enjoy a "comfortable retirement,” and fewer expect ever to fully retire from work. Despite being upbeat about their personal financial situation, the high-net-worth individual’s optimism toward the economy remains low with fewer than one-third saying they are "very” or "fairly optimistic” about the economy. This represents a significant drop from the 53 percent who said they were optimistic about the economic outlook five years ago. Younger and older millionaires alike are still searching for the right kind of financial advice. The overwhelming majority lack a written financial plan and one-third do not have a primary financial advisor. Banks may have an opportunity to gain new clients among younger high-net-worth individuals. Gen-X millionaires, the fastest growing affluent demographic, are the most likely to test the financial services offered by banks. In fact, from college funding to asset allocation advice, estate planning to purchasing mutual funds, these respondents indicate that they are more ready than ever to consider a bank for their financial needs. Retirement and Advice Wealthy Americans indicate they are putting off retirement because they enjoy working, but the delay is also driven by concerns surrounding healthcare and long-term living expenses, as well as the desire to maintain their current standard of living. In general, experts recommend most retirees will need approximately 80 percent of their peak working income in retirement. However, a full 47 percent of those surveyed expect to rely on 100 percent or more of their current income in retirement. Despite these high expectations, fewer than 15 percent of the respondents own annuity products that can help generate supplemental retirement income or products, such as long-term care insurance, designed to reign in healthcare-related expenditures. One of the most surprising findings from the survey is the lack of advice millionaires receive about retirement and other financial planning. "More than a third of the respondents don’t have a primary financial advisor, and the number of the wealthiest consumers who have a full-service broker dropped to 25 percent – the lowest in the survey’s history,” said Zultowski. "At the same time, a growing number – 14 percent, twice as high as just four years ago – admit they know ‘little’ or ‘next to nothing’ about investments and other financial matters, so there are significant opportunities for advisors to help the high net worth achieve their financial goals.” About The Phoenix Companies, Inc. With roots dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) helps individuals and institutions solve their often highly complex personal financial and business planning needs through its broad array of life insurance, annuities and investments. The company’s products and services reflect deep insights into the wants and needs of consumers and financial professionals gleaned from research, including its Phoenix Wealth Survey, conducted annually since 2000. Phoenix has been recognized for its people-friendly programs by Working Mother magazine, the National Association of Female Executives and The Princeton Review. In 2006, Phoenix had annual revenues of $2.6 billion and total assets of $29.0 billion. For more information, visit www.phoenixwm.com. Note to editors: A copy of the executive summary of the 2007 Phoenix Wealth Survey is available on the Phoenix website. Securities distributed by Phoenix Equity Planning Corporation. BPD31915 5-07