When millionaires share their take on money issues, we’d probably do well to listen. After all, these are the folks who have a track record of building wealth.
So it’s a bit discouraging when more than one-third — 35% — of those with at least $1 million in investable assets say flatly that it will take a “miracle” to retire securely.
Those were the findings when investment management firm Natixis surveyed 1,617 individuals who already have accumulated $1 million or more in investable assets. Natixis notes that the 35% of those millionaires who believe it will take a miracle to retire was just slightly lower than the 40% of all investors who feel the same way.
Why do the wealthy feel so anxious about a secure retirement? Natixis notes that as ridiculous as it may sound to many, $1 million isn’t exactly what it used to be. What’s more, the survey found wealthy individuals fear their money may be worth even less in the years to come:
“Nearly seven in ten also see inflation as a threat. After experiencing the highest inflation in 40 years, investors are wise to recognize the impact that rising prices can have on their finances in retirement. Essentially, when things cost more, their savings will not go as far.”
Another factor underlying millionaire unease about retirement may be the reality that the well-heeled are surprisingly unlikely to have built a nest egg worthy of their net worth.
The millionaires in the survey have accumulated a median retirement savings of $625,000. While that is a lot of money, it’s just 2.5 times the $250,000 that those who are not millionaires have saved for retirement, according to Natixis.
Natixis says that the lag in millionaire retirement savings is especially surprising given that the high-net-worth individuals in the survey have accumulated more than four times as much total wealth as those without $1 million in assets.
Do you hope to join the ranks of the 6.98 million folks in North America who are millionaires? Get started by reading “10 Guaranteed Ways to Retire Rich.”