Just because affluent Americans approach retirement planning with far more assets than average savers doesn’t mean they are not anxious. In a study, the LIMRA Secure Retirement Institute found nearly 70 per cent of affluent consumers said maintaining their lifestyle in retirement was a top financial goal. More than 80 per cent of the affluent are confident they will be able to live their desired lifestyle in retirement, but, despite substantial assets, only four in 10 are ‘strongly confident.’ The reasons range from market volatility and rising inflation to living longer in retirement and unexpected events. The study found those who work with an advisor to develop a formal written plan to manage their assets experience increased confidence. About half of those with written plans (54 per cent) said they were ‘very confident’ about living their desired lifestyle in retirement. However, only half of affluent consumers have a formal written plan. The study pointed out that once a written plan is in place, both advisor and client can pursue realistic planning and improve preparation for retirement. With a plan, 30 per cent of affluent households feel ‘extremely well prepared’ for retirement compared with only 17 per cent who do not have a plan.
245 Fairview Mall Drive, Suite 501, Toronto, ON M2J 4T1