High-Net Worth Individuals Struggle to Save for Retirement
The economic reality of retirement has become a growing concern for high-net-worth individuals, according to a new survey from Natixis Investment Managers. 58% of those surveyed said they expect to have to work longer than planned, and 36% worry that retirement may not even be an option.
The survey found that the median reported for retirement savings amongst high-net-worth individuals was $625,000 and the average retirement savings rate was 19.4%. This is about 150% and 2.8% higher than the total group of investors surveyed, respectively. However, this still falls short of the amount needed to retire comfortably, which was found to be $1.25 million in a separate survey by Northwestern Mutual – a 20% jump from the $1.05 million respondents cited a year earlier.
35% of millionaires surveyed by Natixis said their ability to be financially secure in retirement is “going to take a miracle.” With rising healthcare and long-term care costs, combined with the highest inflation in decades, the ability to save and retire securely is becoming increasingly difficult. This survey suggests that even the rich are having to adjust their expectations and plans for retirement.
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