Working with Retired Investors

It is the goal of the majority of investors, regardless of wealth level, to someday retire. It is true some Investors make a conscious decision to remain active in the workforce well beyond what is considered a “normal retirement age” as long as they are physically able, but this percentage is small. As investors enter retirement, their needs and priorities shift. While there are some investors that will always be Self-Directed and may never need assistance, the typical retired investor is more heavily dependent upon others for advice; and will eventually reach out to an advisory firm for expertise. Given today’s average life expectancy of 78, retired investors face challenges with their investments and expenses to ensure they can afford a healthy lifestyle, and in some cases create a multi-generational legacy.

For the purposes of this report, Spectrem Group classified investors according to their retirement status. Two categories were provided:

· Not Retired: This includes those investors who are still working and define themselves as Not Retired

· Retired/Semi-Retired: This includes investors who consider themselves to be Retired or Semi-retired.

The data includes respondents who are Millionaires ($1 million to $5 million of Net Worth, not including primary residence [NIPR]), ) and Ultra High Net Worth (UHNW - $5 million to $25 million Net Worth NIPR). Among those who classify themselves as “Retired/ Semi-Retired” for purposes of this report, there are 928 investors, with 582 Millionaires and 346 UHNW. For each wealth group, comparisons are made with those who are not retired within the same wealth segment.