High-Net-Worth Individuals Struggling to Save Enough for Retirement
Despite the growing wealth of the wealthy, a survey from Natixis Investment Managers has revealed that 58% of high net worth individuals accept they will have to keep working longer and 36% worry that retirement may not even be an option.
The survey of 8,500 investors, 1,617 of whom have $1 million or more saved, found that 58% of millionaires said they “accept they’ll have to work longer than planned” while 44% said they “worry they may not be able to keep working as long as they’d like.”
The survey also revealed that 35% of millionaires said their ability to be financially secure in retirement is “going to take a miracle”.[0] Furthermore, a separate study from Northwestern Mutual found that Americans now expect they will need $1.25 million to retire comfortably, up 20% from a year ago.[1]
The Natixis survey found that for high-net-worth individuals, the median reported for retirement savings was $625,000 and the average retirement savings rate was 19.4%, figures which were respectively about 150% and 2.8% higher than the total group of investors surveyed. Despite the fact that high-net-worth individuals report four times the median assets of the overall survey population, their median retirement savings are only about two-and-a-half times higher than the survey median of $250,000.
These findings indicate that even high-net-worth individuals are struggling to save enough to retire comfortably, with many expecting they will have to continue working longer and some even worrying that retirement may never be an option.
0. “35% of millionaires say retirement is ‘going to take a miracle,' report finds” msnNOW, 6 Feb. 2023, https://www.msn.com/en-us/money/markets/35percent-of-millionaires-say-retirement-is-going-to-take-a-miracle-report-finds/ar-AA17aBaa
1. “35% of Millionaires Say It Will ‘Take a Miracle' to Retire” Newsmax, 6 Feb. 2023, https://www.newsmax.com/finance/streettalk/retirement-savings-investing-outlook/2023/02/06/id/1107457/