Close Close
ThinkAdvisor

Life Health > Life Insurance

Phoenix: The Rich Also Worry About Inflation

X
Your article was successfully shared with the contacts you provided.

Even America’s millionaires are thinking about inflation’s impact on savings.

Researchers at the Phoenix Companies Inc., Hartford, have published figures supporting that conclusion in a summary of results from a survey of about 1,900 U.S. adults who have a net worth of $1 million or more, excluding the value of their primary residences.

Only 54% of the 2008 survey participants said they feel wealthier in 2008, down from 81% in 2007.

The percentage of participants who said they are “very optimistic” about their financial future fell to 25%, from 34%.

In addition, 58% of the 2008 survey participants said that the U.S. economy is in a downturn and that the worst is yet to come.

The Phoenix researchers found that 40% of the high-net-worth individuals surveyed worry that their assets will be exhausted too quickly or that they will not be able to live comfortably on their retirement income, compared with 36% who expressed such concerns in 2007.

The percentage of participants who fear that inflation will erode the value of their retirement income has increased to 50%, from 42%, while the percentage who fear poor investment performance will reduce the value of their assets increased to 39%, from 33%.

Despite the participants’ concerns, 50% rarely seek professional advice when making major financial decisions, up from 45% in 2007, and 41% of the 2007 participants said they do not have a primary financial advisor.