Millionaires may have a lot of money, but in many ways, they are just like the rest of us. That means they have some nagging anxieties about what life will be like in retirement.
Recently, investment management firm Natixis surveyed 1,617 individuals who already have accumulated $1 million or more in investable assets to get their take on money matters.
In the survey, the millionaires revealed that they share the following key concerns about life during their golden years.
High public debt will mean lower public benefits
High-net-worth respondents who cited this worry: 75%
The American government has been on a spending binge, pouring trillions into coronavirus relief, social programs, infrastructure projects and efforts to protect the environment.
All of that spending is making even millionaires a bit uneasy, with three-quarters of them worried that as the nation’s debt deepens, some public benefits might end up on the chopping block.
Yes, even millionaires can need Social Security — a typical 4% annual withdrawal in retirement from $1 million in assets means just $40,000 per year to live on.
They may not be able to work as long as they like
High-net-worth respondents who cited this worry: 44%
Today, many people plan to work deep into their golden years. But reality may intrude on those goals.
For example, perhaps the spirit is willing, but the body can’t keep up. Or maybe age discrimination keeps you on the couch instead of at a job.
It may be sobering to note that in 2018, just 24% of men and 16% of women ages 65 and older were working, according to the U.S. Census Bureau.
It will be hard to get by without public benefits
High-net-worth respondents who cited this worry: 38%
Those who worry about cuts in public benefits probably ask themselves the next logical question: “How will I get by without those benefits?”
For more than one-third of millionaires, the answer is unclear, adding to their anxiety.
Retirement may not be an option
High-net-worth respondents who cited this worry: 36%
As we reported recently, 35% of millionaires say it will take a “miracle” to achieve a secure retirement.
When you feel that unsure about your financial future, continuing to work is probably your best option, even if you would prefer to retire.
For tips about how to thrive financially during retirement, check out “The 5 Smartest Investments for Seniors.”