Retirement concerns are on the rise for Main Street investors who continue to struggle with maintaining their current financial position. Learn more about their concerns.
Retirement concerns are rising for Main Street investors still feeling the effects of the prolonged economic downturn, according to a new quarterly study by Millionaire Corner, which tracks the attitudes and behaviors of wealthy investors.
Main Street investors are increasingly worried about having enough money set aside for retirement, according to our first quarter 2012 study. (Millionaire Corner calls Main Street investors the “Mass Affluent” and describes them as having a net worth of $100,000 up to $1 million, not including their primary residence.)
More than two-thirds (67 percent) of the Mass Affluent said they are worried about having enough money set aside for retirement in March 2012, up from the 63 percent who expressed similar retirement concerns a year ago, according to our most recent study.
The group also expressed a higher level of concern about being able to retiree when they want to. Fifty-eight percent of investors expressed such retirement concerns in 2012, compared to 56 percent in 2011. A greater share of Mass Affluent investors is also worried about long-term care issues. Fifty-three percent of those surveyed this March said they were concerned about “having someone to care for me in my old age” – a concern expressed by half the Mass Affluent investors surveyed in the first quarter of 2011.
More than one-fourth of Mass Affluent investors expect to delay their retirement due to the “current economic environment,” according to our study. These particular retirement concerns are shared by more than 40 percent of Mass Affluent investors ages 55 to 64.
The ability to save also worries a significant share of the Mass Affluent. Nearly 30 percent of Mass Affluent investors report that “at the present time, my household is not saving enough to meet our financial goals.” This concern is shared by 39 percent of Mass affluent investors ages 55 to 64.
Retirement concerns are rising in tandem with other financial concerns. Mass Affluent investors’ worries about “maintaining my current financial position” jumped 10 percent in the last year, up from 62 percent in the first quarter of 2011 to 72 percent for the same period in 2012. The group is also increasingly worried about the financial stability of their children and grandchildren. Sixty-seven percent of the Mass Affluent reported being worried about the next generations in 2012, compared to 59 percent in 2011. At the same time, fears of inflation and job loss – relatively low-level concerns – are subsiding slightly.