Affluent Americans are confident in their money management skills, but recent findings from First Citizens Wealth uncovers the financial and retirement insecurity some still face.
The “Beyond Wealth” study, which surveyed 1,000 Americans with investable assets greater than $500,000, found that 66% believe they manage their money better than others, yet only 50% believe they’re prepared to pass down wealth and have a written plan organized. About two in five say they have thought about building a written plan but have not done so.
While most anticipate retiring in their 60s, 18% say they are unsure of when they will retire, with the primary concern being maintaining their lifestyle in retirement (44%). To retire comfortably, First Citizens Wealth reports that wealthy Americans say they’ll need $3 million. If they want to retire and pass down wealth, that number jumps to $5.5 million. As nearly all (94%) say they intend to hand down wealth to heirs, the findings show that some continue to fall short of their retirement goals.
“Our study finds that affluent Americans feel they are managing their money well but falling short in readiness to transfer that wealth to others, despite intending to do so,” said Nerre Shuriah, First Citizens senior director of Wealth Planning. “Estate planning is best started well in advance of when it is needed. That’s why it’s crucial to work with financial professionals to clarify your estate goals and make plans to navigate a variety of retirement scenarios. Effectively planning wealth transfers and managing tax implications are important for successful outcomes when the time comes.”
Most high-earners began working with an advisor in their late thirties, however, First Citizens Bank notes that more are starting to seek professional help in their late 20s. Beyond growing wealth, which 89% of respondents say their financial advisors helps them generate, affluent Americans credit the professionals for helping them feel more prepared for the future (66%), reducing stress (58%), saving time (45%), and “allowing them to focus on the important things in life” (43%).
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.