More than four in 10 high net worth investors cited a burdensome retirement as their greatest fear in advanced age.
While recent studies, including one conducted by Spectrem Group, have shown that high net worth individuals don’t always rely on financial professionals to manage their investments, those trends seem to shift as clients approach and enter retirement.
Depending on a person’s savings plan, retirement can either represent a time of unprecedented freedom or one of fiscal concern. Even for wealthier consumers, planning for retirement can be a stressful endeavor. While high net worth consumers may not be apprehensive about outliving their retirement savings, most certainly want to leave a legacy for next generation.
By now, information about how underprepared Americans are for retirement has become old news, but it’s difficult to overstate the depth of this problem. A litany of factors have contributed to this crisis, and it’s difficult to pinpoint a surefire solution.
Retirement income is a hot topic for anyone considering their post-work plans. Clients regularly ask financial professionals how much money they’ll need for each year of retirement. Over the years, common wisdom indicates new retirees should aim to make between 80 and 85 percent of their pre-retirement income during their first year out of the workforce.
Many high net worth business owners may not realize the importance of retirement planning. As Insurance News Net pointed out, these consumers are exceptionally busy running a successful business, and many view retirement planning as a secondary concern.
Financial professionals want to help their clients reach personal goals for happiness in retirement. As people’s life spans have gotten longer and the nature of work has changed, what people expect from their years outside the workforce has changed significantly.