Retirement plans vary depending on income levels, but investors do think about it
Almost half of the High Net Worth investors who have not yet retired have definite retirement plans and want to retire within 10 years, a Spectrem’s Millionaire Corner report says.
The study surveyed investors with net income ranging from less than $100,000 annually to those with net income of $750,000 and more annually. Fifty-seven percent of the group was male and 43 percent was female.
Retirement was the most frequently cited concern of the investors surveyed, with 52 percent selecting “being able to retire when I want to.” That number decreases according to income, with 55 percent of those with less than $100,000 income concerned about being able to retire when they want to compared to 36 percent of those with $750,000 or greater income.
Those in the study who were already retired had the option to say that choice was not applicable.
Among investors with more than $1 million in income, 18 percent said they have no plans to retire, according to the study.
The study participants were closely split between retired and working, with 46 percent retired and 43 percent working. Eleven percent called themselves semi-retired. Fifty-one percent of those with $750,000 or more in net income said they were “working.”
Among those working, 21 percent said they would retire in less than 5 years, while 47 percent said they would retire in more than 10 years. Fifteen percent of those with greater than $750,000 said they never plan to retire, while 11 percent of the not-yet-retired survey group said they plan to retire before they turn 60.
Using age as a retirement target, 33 percent said they planned to retire between the ages of 66 and 70, while 38 percent said they planned to retire between 62 and 65. Seventeen percent said over 70 was the target age, while 31 percent of those with incomes of $750,000 or more targeted over 70.
The survey shows expected results in terms of those who expect to live comfortably in retirement. More than three-fourths of the wealthiest income segment believes they will have sufficient income to live comfortably, while only 59 percent of those with an annual income of less than $100,000 expect to have sufficient income to retire comfortably.
Almost 30 percent of investors with less than $100,000 net income admit they are not saving enough. The numbers decrease as income rises, except for the $750,000-plus investor, which is twice as concerned about savings as the two income segments below (although only 10 percent indicates they are not saving enough).
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.