Plan early for retirement. That’s the lesson most commonly cited by retiree respondents to Merrill Lynch’s Affluent Insights Quarterly Survey, which examines the values, financial priorities and concerns of affluent Americans.
Asked what key advice they would pass on to younger generations, 78% of retirees said individuals should begin to plan for the life they want in retirement no later than in their 30s; 57% recommended that people start to plan in their 20s.
Of those surveyed, 48% said having a clear vision of how they wanted to live in retirement was more important than they’d initially anticipated, while 52% cited the importance of understanding how to effectively manage retirement income so it lasts.
Many retired respondents pointed to the importance of a financial advisor in helping develop a clear retirement plan. Among all retired respondents, 31% worked with a financial advisor and 55% indicated they wished they had started doing so sooner.
Non-retired respondents also pointed to the importance of working with a financial advisor, with 67% say the relationship has given them confidence in their ability to meet their long-term financial goals.
Employer has important role
Those respondents still in the workforce also cited their employer as vital to helping them prepare for retirement. Of affluent employees with retirement benefit plans available to them, 62% rely solely or heavily on these vehicles for retirement saving.
Of affluent employee respondents that have access to financial education in the workplace, 70% take advantage of it, and among those that do not have access 49% would take advantage of it if it were made available to them.
When asked what employers could do to help make managing their personal finances easier, affluent employees cited:
- More intuitive online tools to help them manage all their banking and investment needs (30%)
- Financial seminars relevant to their life stage (26%)
- More relevant research or literature to help inform investment decisions (23%)
- Access to a one-on-one relationship with a financial advisor (22%)