According to a new wealth study from MaritzCX, one in five mass affluent investors and one in 10 high-net-worth investors feel they are too much in debt and are living paycheck-to-paycheck. It also found that about one-third of affluent investors are convinced they will have no wealth left to transfer to their children and another one-third are unsure. About four in 10 affluent investors do not know if they will have enough money saved for retirement. Affluent investors are those with more than $100,000 in investable assets.
Anxiety is the New Normal
Despite the rebound of both the economy and the stock market, most affluent investors are concerned about some combination of circumstances that could once again threaten their income and portfolio. Anxiety, it appears, might be the new “normal,” with investors fearing that the pattern of a significant
Post-Pension Retirement
The poll also showed that 45 percent are concerned about not having enough money to last through retirement, and 30 percent believe they will have to work to provide income in retirement. “This is not surprising since we are now approaching the first group of retirees who will be retiring in the post-pension world, at least for the private sector,” noted Richard Brose, senior director of strategic consulting for the financial services practice at MaritzCX.
While these investors have been saving steadily toward retirement, many have no idea how much savings is enough or how they will generate income from those savings once they retire. Uncertainty drops considerably when investors have an up-to-date financial plan. “The new retirement is not age-bound but is filled with uncertainty,” Brose added. “More than half of affluent investors say the idea of a retirement age is an outdated concept.”
See Also:
- Shock Poll: Even the Affluent are Worried about Retirement
- Are Rich People Better at 401k Retirement Saving?
- Assets Benchmarked to S&P 500 Hit $7.8 Trillion
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
