Retiring old clichés

Bucking convention, retirees find happiness and seek growth

Age 65.

It used to be the trigger for retirement. And for many investors, age is still important. But most wealthy investors are focused on achieving financial well-being before they retire.

Wealthy investors on the cusp of retirement are set on reaching a specific savings goal. Whatever their individual target may be, the vast majority of these wealthy Baby Boomers are highly confident they will have enough saved for retirement.

After they retire, however, many wealthy investors don’t take a conservative approach with their portfolios. They often have Social Security, pension and dividend income to cover everyday liquidity needs, freeing them to focus on longevity and legacy goals.

In fact, 84% of wealthy retirees plan to grow their assets regardless of age. For this reason, they are comfortable maintaining, and in some cases increasing, their equity exposure in retirement.

Interestingly, financial security is only part of the retirement calculus for wealthy investors. Even with money in the bank, the prospect of leaving colleagues, filling the hours and losing purpose keeps many wealthy Boomers working. Based on the experience of retirees, however, their anxiety is unfounded. The vast majority of wealthy investors are happier in retirement than they have ever been.

If Boomers pondering retirement can make the leap, they may be happier for it.


Wealthy pre-retirees base retirement readiness on assets…

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. In contrast, investors with fewer assets believe reaching a specific age is the main reason to retire.

Second, 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.

Wealthy pre-retirees are confident about their retirement future

Percentage who agree with each statement

I have been saving money for more than 40 years. I have homes and other property. I have life insurance. I have everything I need.

– Male, 64, pre-retiree

I am more financially prepared than mentally based on my calculations. I could retire in the next 5 years.

– Female, 58, pre-retiree