Data and Research

Even the Very Wealthy Worry About Funding Retirement

Twenty percent of those with a net worth of $5 million or more worry they will have enough money to last them in retirement.

By Lee Barney editors@strategic-i.com | April 06, 2017

Twenty percent of ultra high net worth (UHNW) people, those with a net worth of $5 million to $25 million, and senior corporate executives worry about having enough money to last them throughout their retirement, according to a Spectrem study, “Financial Behaviors and the Investor’s Mindset.” This group is also concerned that they may not be able to retire when they want to.

Nonetheless, 67% of UHNW people say they are better off financially than they were a year ago. In lockstep with this, 61% of people with a net worth of $1 million share this optimism, along with 53% of mass affluent people with a net worth of $100,000 or more.

A large percentage of UHNW people think that the age for receiving full Social Security benefits should be raised, with many of them indicating it should be raised by several years. Fifty-six percent of the mass affluent think that people earning $300,000 or more a year should not be eligible for Social Security.

A large percentage of the people across all three wealth segments think that the Federal government should forgive student loan debt.

Asked how they attained their wealth, 58% of UHNW investors said it was luck—being in the right place at the right time.

“Advisers can use this information to customize investment recommendations to fit the unique financial concerns and personal situations of their clients,” says Spectrem President George Walper.