Most wealthy investors have not yet set up a system for receiving a regular income from their investments following retirement, a study finds.[@@]
Yet 68% agree that it’s important to set up a reliable income stream for their senior years, according to the study by the Sprectrem Group Inc., Chicago, a consulting firm.
Spectrem found 52% of affluent investors have not established the means for producing a regular flow of cash to support their retirement.
Of those who said they have such an income stream, 43% could not identify the type of investment.
Among those who could, 9% responded stocks, 12% annuities, 3% real estate and 33% other sources.
Many affluent individuals need to structure their portfolios to produce a guaranteed income flow for retirement, says George H. Walper Jr., president of Spectrem. He notes 39% of the affluent are not covered by defined benefit pensions.
“This will leave many open to the vagaries of the market and an uncertain financial future in their retirement years,” he says.
Spectrem defined affluent households as having more than $500,000 in investable assets.