Baby Boomers most feel the recession's impact on their retirement savings and home values.
There are a host of national issues of concern to America’s wealthy ranging from the political environment and government gridlock to the national debt, the federal deficit and the prolonged economic downturn. So say America’s ultra high net worth households, according to Spectrem’s Millionaire Corner wealth level research of homes with a net worth between $5 million and $24.9 million (not including primary residence). But America’s ultra-wealthy, the $25 Million Plus households, are focused mainly on two things, taxes and stock market conditions.
A new Spectrem’s Millionaire Corner wealth level study finds that roughly two-thirds of ultra-wealthy households with a net worth of $25 million are most concerned about these two issues.
Concern is heightened among Baby Boomers ages 55-65. Nearly eight-in-ten (77 percent) report they are concerned about taxes (vs. 68 percent of seniors 66 and up and 55 percent of those under the age of 55); while seven-in-ten said they are primarily concerned about stock market conditions (vs. 64 percent of seniors and 57 percent of those \under 55).
Baby Boomers in general, particularly pre-retiree who do not yet have access to Medicare and Social Security, were hardest hit by the economic collapse, according to a New York Times report on a 2013 study by Sentier Research, a data analysis company These Americans in their 50s and early 60s lost the most earnings power of any age group. Dubbed “Generation Squeeze,” these Baby Boomers found themselves supporting not just their unemployed young-adult children but aged parents as well, while their retirement savings and home values plummeted before they needed to cash out.
Across wealth levels, concern about taxes and stock market conditions are heightened among the least wealthy of the $25 Million Plus households. Among the two-thirds overall who state they are most focused on these issues, roughly three-fourths have a net worth between $25 million and $49.9 million.
Eighty-five percent of ultra-wealthy respondents’ 2013 pretax income comes from investment income, including interest dividends, trust income and capital gains, the Millionaire Corner study finds.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.