SOURCE: BMO Private Bank

BMO Private Bank

February 20, 2014 09:00 ET

Affluent Washingtonians Report They Need an Average of $2.2 Million for Retirement: BMO Private Bank Study

SEATTLE, WA--(Marketwired - Feb 20, 2014) -

  • Ninety-seven percent of Washington's affluent are confident in their ability to achieve their ideal retirement lifestyle
  • Wealth & the Next Generation: 86 percent feel their children are prepared to manage their inheritance
  • Only nine percent believe their children will be better off than they are financially

According to a study released today by BMO Private Bank, affluent Washington State residents (those with investible assets of $1 million or more) reported that they require, on average, $2.2 million to fund their retirement. The study is the fourth in a series by BMO Private Bank examining trends among the affluent in the United States.

The study also found that an overwhelming 97 percent of Washington's affluent are feeling confident about their ability to achieve their ideal retirement lifestyle. That compares to a 94 percent confidence rate nationally.

"This confidence reflects the important steps people from our state have taken to prepare for their retirement," said Dan Sudit, Market Manager, Washington, BMO Private Bank. "We all want our golden years to be free from financial worry, so it's important for people of all income levels to protect their retirement savings against inevitable market fluctuations by getting good advice and having a diversified portfolio."

Wealth and the Next Generation

The study also examined issues related to the inter-generational transfer of wealth. It found that, among the affluent Washington residents with children:

  • Twenty percent of their wealth will be left to their kids.
  • Eighty-six percent feel that their children are well prepared to handle their inheritance.
  • Seventy-eight percent spend "a lot of time" or at least "some time" talking to their kids about money management.
  • More than half (57 percent) feel their children will be worse off financially than they are.
  • Of those who feel that their kids will be worse off than they are, 62 percent believe it is because of the economic situation.

"Obviously there is concern for the financial well-being of the next generation, but the parents surveyed in our study are on the right track," said Mr. Sudit. "While the economy can influence a person's financial situation, there is no substitute for teaching our children about money management from a very young age to give them every advantage for financial health."

Key National Findings

High-net-worth Americans and Retirement:

  • Affluent Americans require, on average, $2.3 million to fund their retirement.
  • Almost all (94 percent) are feeling confident about their ability to achieve their ideal retirement lifestyle.

Wealth and the Next Generation:

  • The vast majority (85 percent) of high-net-worth Americans feel their children are well-prepared to handle their inheritance. 
  • Affluent Americans will leave more than one-third (36 percent) of their wealth to their children.
  • Seventy percent spend time talking to their kids about money management and almost half (43 percent) feel that their offspring will be better off than they are.
  • Of the 35 percent who feel that their kids will be worse off than they are, 63 percent believe that this will largely be because of the future state of the economy.

About BMO Private Bank, a part of BMO Financial Group
BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high net-worth-clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.

BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.

The online survey was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 482 American adults who have $1M+ in investable assets. The margin of error for a probability sample of this size is ± 4.5%, 19 times out of 20.

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