Most affluent investors expect to delay retirement: survey
The biggest fear for most people is outliving their money — exceeding taxes and health care, two other big concerns. And they’re right to be worried.
Part of the problem is simply that life spans have grown as corporate pensions have shrunk, making the economics of retirement more complicated.
Nonetheless, affluent investors feel better about their retirement propects than they did a year ago, according to recent research from brokerage giant Merrill Lynch.
Despite this, 61 per cent now expect to retire later than planned, up from 29 per cent in January.
And 21 per cent admit to dipping into their nest egg to meet regular monthly expenses or make up for reduced family income, explains Lyle LaMothe, head of U.S. wealth management at Merrill.
The number one lesson the affluent have learned from the recent recession: spend within their means.
Thirty seven per cent indicate they’re spending less today than they were one year ago, with 27 per cent cutting back on luxury items and vacations, and 23 per cent more closely managing day-to-day expenses and spending less.
The study also found that those with a bit of money to invest are continuing to take a more conservative approach. It reports that 39 per cent say they have a much lower risk tolerance, and are gravitating toward more conservative investment strategies as a result.
Sound like anybody you know? Have you been nibbling at retirement assets to pay the bills? Or are things looking up for you?
By Gordon Powers, MSN Money
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