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Even millionaires worry about having enough money for retirement

by Paul Morgan

A new survey conducted by Northwestern Mutual reveals that millionaires have concerns about their retirement, just like the rest of us. The study found that a third of wealthy Americans believe it’s possible they could outlive their savings, while approximately half say their financial planning needs improvement. These findings highlight the importance of developing a long-term financial plan for individuals of all income levels.

The study, which focuses on the mindset of the wealthy as they navigate retirement planning, demonstrates a high level of discipline among millionaires. It shows that 42% of wealthy Americans consider themselves “highly disciplined planners who know their exact goals, have developed specific plans to meet them, and rarely deviate from those plans.” This is in contrast to only 20% of the general population who say the same.

Additionally, the survey reveals that 70% of wealthy Americans have financial advisers, almost double the amount of the general population. Furthermore, 84% of wealthy individuals claim to have a long-term financial plan that accounts for economic cycles, compared to just over half of the general population.

The study also exposes the financial insecurity that wealthy Americans experience regarding their retirement plans. It suggests that they would seek out advisers who can offer more comprehensive financial guidance and have a better understanding of their life stage and priorities. This insecurity is largely attributed to economic uncertainty.

However, Catherine Valega from Green Bee Advisory argues that this survey exposes a larger problem within the financial services industry. She suggests that advisers often fail to assess their clients holistically and focus on addressing one small aspect of their financial planning rather than the entire picture.

Collins Financial’s wealth management adviser, Chris Collins, highlights the unique challenges that millionaires face when it comes to retirement planning. He mentions that wealthy families’ Individual Retirement Accounts (IRAs) are vulnerable to taxes and market forces, unlike lower-income families who rely mainly on a salary and Social Security.

In light of these findings, Northwestern Mutual recommends that wealthy individuals seek a second opinion to ensure the strength of their financial plans. The company suggests that periods of uncertainty, like the one we are experiencing now, prompt people to reevaluate their choices and consider if their current advisers are the right fit for them.

Furthermore, experts assert that individuals with lower net worth should also develop a financial plan to outline their retirement futures. Collins advises his clients to plan ahead for retirement, as those who do tend to see better outcomes.

Ultimately, the study highlights the need for individuals, regardless of their income level, to have a well-thought-out financial plan in place. It emphasizes the importance of seeking expert advice and considering the long-term implications of financial decisions. Whether someone has a modest income or is ultra-wealthy, the benefits of working with a financial plan provide peace of mind and a sense of calm about their future.

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