Millionaire households overall fully expect to have sufficient income to live comfortably during retirement. Seventy-nine percent feel they are saving enough to meet their financial goals to maintain their current financial position, according to a new Spectrem Group study. Only 12 percent expressed concern that because of the economic environment they will have to delay their retirement plans, while 11 percent do not think that at the present time they have saved enough to meet their financial goals.
But younger Millionaire investors, ages 54 and under, feel retirement concerns most keenly and are most likely among age levels to be concerned about being properly prepared for retirement. Sixty-two percent are concerned about having enough money set aside for retirement, while more than a quarter (26 percent) believe they will not be able to retire as planned. Fifteen percent of Millionaire investors ages 55-64 share this concern, as do just 3 percent of those ages 65 and up.
Nearly twice as many of the youngest Millionaire investors as those in the 55-64 age group are concerned that they are not saving enough to meet their retirement savings goals. They are also slightly more likely to have made early withdrawals from funds that had been earmarked for retirement.
As with generations before them, younger Millionaires are burdened with financing the education of their children while also perhaps faced with caring for aging parents. With more of their lives ahead of them, add to these concerns an economic downturn that devastated their savings, uncertain job security, and concerns about whether Social Security will be solvent by the time they need it, and it is not surprising that retirement looms large as one of the concerns most pressing on younger Millionaires.
Nearly a quarter says that that their employers have reduced employer contributions to their retirement accounts. This age group is the least likely to consider themselves “savers” more than “spenders and have a well-defined strategy for investing their retirement plan money. They are also the least confident that that the investment choices they have made in their retirement plan will produce a good return and are least satisfied with the return their retirement plan investments have earned over the past year.
On a positive note, admitting there is a problem is the first step to tackling it. This age group is the most likely to also be concerned about getting adequate advice and help to allow them to achieve their financial goals.