More than half (57%) of respondents said they feel more financially
stressed than they were six months ago. Three out of four (76%) said they feel
less wealthy and more than a third (35%) say they do not have enough to retire.
Bell Investment Advisors’ fourth annual Affluent Boomers at 60 Survey
of 500 high net-worth 60-year-olds also reveals a loss of confidence in America’s
financial system. These Boomers indicated they’ve lost the most confidence
in government regulators (34%) and banks and financial institutions (30%).
“It is critical for investors to realize there is no bailout
package for retirement,” said Jim Bell, CFP® founder and president
of Bell Investment Advisors. “The current economic situation is a wake-up
call for investors at 60 to have a clear retirement plan that incorporates a
sound investment strategy.”
Of investors surveyed, 54% estimate they will need $1 to $3
million at retirement, but 42% have invested or saved less than $1 million.
Among respondents who plan to reduce their spending this year, nearly half (46%)
are doing so in order to rebuild their retirement savings. More than half of
those boomers who have decided to delay their retirement cite the same reason
for adding more working years to their plans (55%).
When it comes to investing, the majority (56%) think the stock
market is too risky for people their age. Even more (61%) of those surveyed
plan to make a change in their investment strategy this year, with one-third
of them planning to invest more in fixed income investments. Half of those investors
who intend to change are taking a ‘wait and see’ attitude about
which direction they will go.
“Merely increasing savings and working longer will not
fill the gap for most Boomers approaching retirement,” said Bell. “Recent
stock market volatility has many Boomers reconsidering risk, but it’s
critical to keep in mind that when you reduce investment risk you also reduce
the upside potential to rebuild wealth. Boomers who choose to wait for a market
recovery to decide when to reinvest will miss early gains.”
Despite the radical changes this group of boomers is making
to their retirement plans, the market downturn of 2008 has not altered their
core positive feeling about their lives. Almost all (97%) said they feel great
about their life, as they have in the prior four years Bell has sponsored this
survey. Looking forward, 73% said they expect the stock market to finish 2009
higher than it started, and 43% said they feel 2009 will be a year where they
increase their wealth.
Survey Methodology
The fourth annual Affluent Boomers at 60 Survey was conducted by Opinion Research
Corporation from January 21 – 29, 2009 (the first week after President
Obama’s Inauguration), among a random sample of 514 adults comprised of
259 men and 255 women who were born in 1949 and have investable assets in the
$1 million range. The survey is designed to chart a generation of inventors
as they reach this milestone birthday before retirement.
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