Wealthy Americans Plan to Retire Young and Remain Activepar Andrew Rickard | March 31 2015 01:59PM
BMO Private Bank has released the results of a study examining how affluent Americans (i.e., those with investable assets of $1 million or more) plan to spend their retirement. For the most part, they intend to retire early and stay active.
One in five affluent Americans said they plan to retire before the age of 40, and on average they expect to retire at age 56. On the other hand, 21% of those with a high net worth indicated that they wish to continue working part time, another 21% intend to start a new career, and 11% hope to start their own business.
As for how they intend to fund their retirement, nearly all of the respondents (99%) said they currently have an investment portfolio or share one with their spouse, with an average value of $3.2 million; 85% said they intend to use the money for their retirement, but 45% said they also plan to leave some of it as an inheritance.
The study also revealed that only 5% of wealthy people in the United States consider themselves to be aggressive investors, whereas 42% describe themselves as conservative investors and 53% say they have a balanced style of investing.