One thing that presents many clients from fully executing a comprehensive estate plan is the fear that they haven’t fully taken care of their own retirement. That must always be their first priority, and rightfully so.
That might be surprising given the demographics of the estate-planning market. It is generally high-net-worth individuals who create estate plans, and these people might also be assumed to be well prepared financially for retirement. But surveys show that they are as nervous as any other American heading into retirement. The concern might not be that they have set aside sufficient assets to cover their retirement, but there are serious fears there nevertheless.
In a study that just came out last week, Legg Mason surveyed 500 affluent investors (defined as those with at least $200,000 in investable assets), and found that 88 percent of them were confident that their money would fund their retirement comfortably, in the manner in which they were hoping. But they still had many lingering fears about retirement. According to Legg Mason, those concerns are, in order:
1. Having a catastrophic event that uses up my retirement funds 2. Living longer than my retirement funds last 3. Government not following up on obligations 4. Not saving enough for my retirement 5. Low interest rate environment
The paramount concern appears to be some sort of devastating illness, which would be the “catastrophic event” alluded to in the first answer above. Another survey of high-net-worth individuals (defined as those with at least $250,000 in household assets), conducted annually by Nationwide Financial, shed some further light on how these people relate to their health care worries.