Planning on Retirement? Focus on Time, Not Money Survey Says
According to a survey by PNC Wealth Management, many wealthy Americans are said to be giving more focus on time instead of their assets and money once they retire and at least one third of the survey respondents have admitted to having no concrete retirement goals.
The survey of 1,263 wealthy Americans, all of whom had at least $500,000 in investible assets, revealed that 15 percent say, “I am saving as much as I can, but I am not sure I will meet my goal.” Another 11 percent report they are behind schedule in their contributions and 8 percent do not have a retirement goal.
Among the prepared, 50 percent are confident they will reach their retirement goals. Another 17 percent say, “I am ahead of schedule and may end up surpassing my goal.”
The survey revealed other attitudes about wealthy Americans’ views of what retirement means to them, what they hope to do with their retirement and advice from wealthy retirees for peers who are still working.
Paul Gaudio, a senior wealth planner with PNC Wealth Management in Princeton, N.J., is not surprised that so many are uncertain about their goals: “The last 18 months have made everyone re-evaluate their goals, no matter how much money they make. But in my experience nobody, particularly those earning more than $150,000 per year, like to admit defeat or mistakes, and so they create financial illusions to rationalize their retirement plans.”
To most, retirement means a break with life as usual. Most envision retirement to be unscheduled, living every day as different, PNC’s survey findings revealed.
“This is important for us as advisors to know, as the retirement conversation may be more effectively framed around a discussion of spending time as opposed to money,” Gaudio said.
Working affluent envision themselves retiring at a median age of 62.3 years, the survey showed. Twenty-five percent expect to retire between ages 60 and 64, while 11 percent said they will work until they are between 70 and 74 years of age.
Of those who plan to work until age 70 or longer, 60 percent said, “I enjoy working and I don’t want to stop.”
The survey also found 90 percent plan to live in retirement at least 10 years, while 70 percent are planning a retirement between 10-30 years.
Via PNC Financial Services Group
