Retired millionaires worry more about taxes than they do about any other expense, including medical bills.
Securian Financial Group Inc., a unit of Minnesota Mutual Insurance Companies Inc., St. Paul, Minn., has published that finding in a summary of results from a survey of 225 retirees conducted by the Spectrem Group, Chicago. Survey participants were ages 70.5 to 75, with a net worth of at least $1 million.
Personal income tax expense was the participants’ highest average annual expense, according to Spectrem researchers. Survey participants reported paying an average of $25,226 in personal income taxes per year. Income taxes, real estate taxes, capital gains taxes and personal property taxes amounted to a combined average of about $40,600 per year, or 4% of the participants’ net worth, the researchers found. Health-related costs averaged $6,681 per year.
The average survey participant spent more on travel, cars, charity, travel, food, gifts and mortgage payments than on health care. Before retirement, about one-third of the participants had expected their biggest post-retirement expense to be health care. Once the participants retired, however, health care expenses accounted for an average of just 12% of their expenses.
Other survey findings:
–About 88% of the millionaires cite the “security and well-being of our country” as their greatest concern.
–28% of the participants said they switched advisors when they retired.
The GAO has also provided state-by-state numbers for small-group exchange plan enrollment.
Two veteran life settlement bloggers say they must persist because, sadly, ignorance does.
The actuaries say the ratio of actual claims to expected claims has been very low.
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