Retiring old clichés

    The latest UBS Investor Watch report, “Retiring old clichés,” reveals that financial security is only part of the decision-making process when it comes to retirement.

    Emotional anxiety outweighs financial concerns when deciding to leave the workforce with many wealthy investors saying that a lack of a set schedule, missing colleagues and a fear of losing purpose keeps them from making the leap into retirement.

    In stark contrast to the fears of pre-retirees, most retired investors adjusted quickly and easily to retired life. One wealthy retiree compared retirement to being young again, "but with money and no curfew."

    Half of wealthy retirees took no time at all to adjust to retired life. Another third took less than a year. A full 84% of wealthy retirees say they are happier than at any point in their lives. In fact, if today’s retirees had the chance to do it over again, only 19% would have delayed their retirement.

    Meanwhile, Baby Boomers have been known for “living to work,” having been focused on their careers for so many years.

    "Even once they achieve financial security, their emotional attachment to work keeps many Boomers on the job,” said Paula Polito, Client Strategy Officer of UBS Wealth Management Americas. "Now, as many of them look toward retirement, they need to start 'working on living,'—figuring out how they will fill their time and find their purpose once they leave the workforce." 

    Key takeaways

    • The latest UBS Investor Watch report, “Retiring old clichés,” reveals that financial security is only part of the decision-making process when it comes to retirement.
    • In assessing their retirement readiness, wealthy pre-retirees differ from other investors in two key respects.
    • First, the majority of wealthy pre-retirees (66%) are focused on hitting a certain asset level before retiring, citing financial security as the main trigger for walking away from work.
    • Wealthy pre-retirees do not worry about having enough money to last. Nine in ten are confident they are well prepared financially for retirement compared to two-thirds of investors with fewer assets.
    • They are more concerned with being emotionally ready for retirement than being financially ready. Many worry about leaving colleagues behind, filling their free time and finding purpose.
    • Wealthy retirees don't take a conservative approach with their portfolios—84% plan to grow their assets regardless of age and focus on longevity / legacy goals.
    • Ask your UBS Financial Advisor how you can best prepare for the changing face of retirement.
       

    Are you prepared for all the financial and emotional aspects of retirement? Together we can find an answer. Connect with your UBS Financial Advisor or find one.