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The Key to Helping Wealthy Clients Prep for Retirement

By Alex Padalka July 21, 2017

Wealthy investors only plan to retire when they reach a certain amount of assets in their retirement funds, according to a recent survey by UBS Wealth Management Americas. Less affluent investors, meanwhile, set an age target to go into retirement, according to a press release from UBS.

Sixty-five percent of wealthy pre-retirees plan to hit a certain dollar balance in their accounts before retiring, according to a poll of 2,028 investors with at least $1 million in liquid assets, conducted by June. For almost half of those polled, that “magic number” is between $1 million and $3 million, according to the survey.

The overwhelming majority of wealthy investors (89%) are also confident they’ll be able to save enough for retirement, UBS found. Nonetheless, most fret about how they’ll have to adjust emotionally to not working and missing their colleagues, what they’ll do with their time and having a sense of purpose, according to the survey.

They may have less to worry about than they imagine, however. While only 59% of pre-retirees think they’ll be happier once they retire, 84% of current retirees say they’re happier than ever before, being most satisfied in their 60s and 70s, according to UBS. It’s like being young again “but with money and no curfew,” one wealthy retiree tells the firm.

Nonetheless, financial advisors may need to help wealthy investors better prepare for their retirement healthcare needs. Among respondents to the survey, 73% cite getting sick as their biggest retirement fear, and more than half feel insecure about long-term care planning, UBS found. Another 47% fear that they’ll have no one to take care of them, the survey found.