Health care costs are the most significant concern for Millionaires regarding their retirement funds.
Millionaire investors usually have a large number of items on their metaphorical plate, and it turns out retirement concerns are among those items.
Spectrem researched investors with a net worth between $1 million and $5 million for its 2015 study Financial Behaviors and the Investor’s Mindset and determined that more than one-third are concerned about when they are going to be able to retire. Thirty-seven percent of Millionaires expressed the concern about being able to retire when they want to, including 70 percent of Millionaires between the ages of 36-44. The youngest Millionaires, aged under 36, are not yet thinking about retirement, as only 28 percent expressed that particular worry.
Asked about a more specific concern, Millionaire investors were asked whether they were worried about depleting their retirement funds too early, placing that worry on a 100-point scale, with “0” being no concern and “100” being very worried. Millionaires on average placed their concern at 33, but that worrisome age group of between 36-44 had the concern at 47.
The top concern of the 36-44 age group was the cost of health care, as 80 percent indicated that was what was bothering them.
Interestingly, approximately one-quarter of all Millionaires are concerned either they or their souse will be forced into retirement before they are prepared for that stage of life. That includes 35 percent of the 36-44 age group and 31 percent of the 45-54 age group.
The study respondents were segmented by occupation, and the greatest concern was registered among professionals such as doctors, dentists and lawyers. Forty-three percent were concerned about being able to retire when they want to (over the 37 percent average), and 29 percent were worried about being forced into retirement prematurely.
Apparently, Millionaires are relatively satisfied with their advisor assistance in regards to retirement. Only 26 percent said they were concerned about getting adequate help and advice leading up to retirement.
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.