It's Assets Over Age When Planning Retirement, Say Wealthy US Investors

Josh O'Neill

21 July 2017

Wealthy US investors are prioritizing assets over age when it comes to retirement, new data from UBS shows, with nearly half planning to walk away from work once their savings exceed $1 million.

Some 65 per cent are focused on hitting a certain asset level before retiring, rather than a specific age, according to UBS' Investor Watch Survey. Almost half are targeting savings between $1 million and $2.9 million, much of which is comprised of traditional retirement accounts.

The world's largest wealth manager surveyed 2,028 affluent and high net worth US investors with at least $1 million in investable assets between June 8 and June 13 of 2017, including 475 with assets exceeding $5 million.

UBS says healthcare is keeping wealth investors up at night.

Against a backdrop of healthcare policy change, many wealth investors are likely to underestimate the long-term care costs of retirement, UBS says, as less than half surveyed feel secure about their health and long-term care planning.

Still, 89 per cent of wealthy investors are confident they will have enough saved to be financially secure in retirement. They are more concerned, however, about the emotional side of retirement. UBS offered the examples of leaving colleagues, filling vacant hours and finding purpose.

Meanwhile, the UK dropped a place in a global retirement index this year, as Brexit-related economic fallout spurred a foreboding feeling about retiree welfare, according to Natixis Global Asset Management.

The decline was due largely to the continuing low-yield environment, exacerbated by uncertainty over the country’s political and economic future due to Brexit headwinds.