Plan your retirement early, say millionaires
Millionaire retirees believe it is more important for young people to contribute to a retirement plan than buy a property, according to a survey that we did with clients at deVere Group.
78 per cent of our retired clients who have a net worth of more than £1 million, and who took part in a recent worldwide poll, said it is “important” or “extremely important” to build a retirement income; whilst 62 per cent said it is “important” or “extremely important” to buy a home.
I think these findings reflect the real concerns that people have about getting older.
The survey highlights that even those who have acquired a million pound-plus fortune are concerned that they might not be able to afford to sustain a comparable lifestyle throughout their retirement. In addition, it suggests that many have seen a downturn in their home’s value and that they have a lack of confidence in the property market.
Despite their wealth, the vast number of respondents told us that their money does not go as far as they had expected due to constantly increasing prices; and that it is hard to get used to the fact that they are unlikely to receive income increases in the future.
It appears that retired people, of whatever wealth bracket they may be in, are increasingly realising the level of savings that are necessary to fund a similar lifestyle to what they had enjoyed whilst still actively working.
It’s clear that millionaires’ best advice to young people is to start saving as soon as possible if they want to enjoy a long, active and comfortable retirement.
The survey’s findings underscore our consistent message that the earlier you start financial planning, the easier it is to reach your long-term financial goals.