New UBS Investor Watch Report Delves into the Perceptions and Realities of Modern Retirement and Dispels MythsSource: Business Wire
Emotional anxiety overtakes financial concerns with two-thirds of wealthy pre-retirees saying not having a set work schedule would be a harder adjustment
Healthcare remains a top concern for wealthy investors
- Two-thirds of wealthy pre-retirees are focused on reaching a certain asset level instead of a specific age before retiring.
- 89% of wealthy pre-retirees express confidence in having enough money saved to be financially secure, but most worry about the emotional adjustment of retirement.
- 84% of wealthy investors are happier than ever in retirement, reaching peak satisfaction in their sixties and seventies.
- 73% of wealthy retirees say getting sick is their greatest retirement fear. Less than 50% feel secure about long-term care planning after retirement.
Redefining retirement readiness
Wealthy pre-retirees want to reach a certain asset level before they
retire. In contrast, age is the trigger for pre-retirees with fewer
assets. Although the ideal number varies slightly, nearly half of
wealthy pre-retirees (45%) have a retirement savings target between
Nearly all wealthy pre-retirees (91%) believe they have the financial tools and knowledge necessary for a comfortable retirement, with 89% saying they are confident they will have enough money saved. In addition, 74% believe they know how long their savings will last once they retire.
For wealthy pre-retirees, emotional anxiety trumps financial concerns in assessing retirement readiness. Nearly two-thirds (64%) expect to miss their work schedule more than their salary. Other emotional concerns include the adjustment to retired life (59%), leaving work colleagues behind (57%), experiencing an initial shock (39%), losing a sense of purpose (36%) and filling the hours of free time (34%).
“Baby Boomers have been known for 'living to work,' having been focused
on their careers for so many years. Even once they achieve financial
security, their emotional attachment to work keeps many Boomers on the
Wealthy investors reach peak happiness in retirement
In stark contrast to the fears of pre-retirees, most retired investors adjusted quickly and easily to retired life. One wealthy retiree compared retirement to being young again, "but with money and no curfew."
Half of wealthy retirees took no time at all to adjust to retired life. Another third took less than a year. A full 84% of wealthy retirees say they are happier than at any point in their lives. In fact, if today’s retirees had the chance to do it over again, only 19% would have delayed their retirement.
“Based on the experience of current retirees, wealthy pre-retirees can
lay their fears to rest," said
Still healthy and on solid financial footing, 90% of wealthy investors are very satisfied with life in their sixties and seventies—higher than investors in any other age group, including those in their thirties (68% satisfied) and forties (83% satisfied).
Health and long-term care are top concerns for wealthy retirees
Few wealthy retirees worry about money—only one in five worry about outliving their assets. However, 73% say getting sick is their top retirement concern. Nearly half (47%) are also worried they will not have anyone to take care of them. Consistent with UBS’s last Investor Watch report “On your mark…,” one of wealthy investors’ top expectations of the administration is to address healthcare.
Retirees shun traditional asset allocation guidance in retirement
The UBS findings also showed that investors are seeking to grow assets in retirement instead of following traditional asset allocation guidance to reduce equities with age. For instance, 84% of wealthy retirees plan to continue growing their assets over time, while 74% believe equities offer the best returns regardless of age. Most maintain or increase their equity exposure after retirement.
Once they have achieved the liquidity that makes them feel financially secure for retirement, many wealthy retirees focus on longevity needs, such as healthcare expenses, and building wealth for future generations. Contributing to this is the low interest rate environment, with 71% citing low rates as a reason to seek higher returns, even at an older age.
“This report confirms much of what clients have already been sharing
with us and helps to shatter some of the conventional wisdom on how the
wealthy view retirement," said
About UBS Investor Watch
UBS Wealth Management Americas surveys U.S. investors on a quarterly basis to keep a pulse on their needs, goals and concerns. After identifying several emerging trends in the survey data, UBS decided in 2012 to create the UBS Investor Watch to track, analyze and report the sentiment of affluent and high net worth investors. For more information on Investor Watch, visit ubs.com/investorwatch.
For this twentieth anniversary edition of UBS Investor Watch, we
revisited the retirement concepts first introduced in the 2013 Investor
Watch report titled “80 is the new 60.” This year, 2,028 affluent and
high net worth investors (with at least
Notes to Editors:
About UBS Wealth Management Americas
Wealth Management Americas is one of the leading wealth managers in the
UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
UBS is present in all major financial centers worldwide. It has offices
in 54 countries, with about 34% of its employees working in the
Source: UBS Wealth Management Americas
For UBS Wealth Management Americas
Maya Dillon, 212-713-3130