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March 31, 2015 08:15 ET

BMO Private Bank Provides a Portrait of Affluent Floridians' Retirement

- Affluent Florida residents expect to retire at an average age of 59

- Nearly all plan to spend their golden years in the U.S.

- Travelling, spending time with family and loved ones and focusing on their hobbies are among the top things they plan to do in retirement

SARASOTA, FLORIDA--(Marketwired - March 31, 2015) - BMO Private Bank today released the results of a study which examines what retirement looks like or will look like for high-net worth Floridians (defined as those with investable assets of $1 million or more). The study is part of a series examining trends among affluent Americans.

According to the study, Florida's affluent:

  • Will retire, on average, at the age of 59. Fifty-two percent have/will retire before age 60.
  • Plan to stay in the U.S. during their golden years (95 percent)
  • Want to spend their time in retirement travelling (90 percent), spending time with family (82 percent), focusing on their hobbies (61 percent) and volunteering (52 percent)

"When planning for your retirement years, it's imperative that you prepare well in advance, and include how you plan to afford that time in your life," stated Gary Heard, Managing Director, BMO Private Bank - Sarasota. "You should meet with a wealth management professional who can oversee your portfolio and help strategize how you spend your assets during your retirement years, including your future goals, leisure time and legacy."

Investing Profile of High-Net Worth Floridians

The study also examined how affluent Floridians manage their finances, revealing that the vast majority of respondents (98 percent) say they have an investment portfolio or share one with their spouse/partner. The average amount in their investment portfolio is $7.9 million, which is almost $6 million above the national average of $2.2 million. Almost one third (28 percent) of the state's wealthy hold more than $2 million.

Affluent Floridians intend to use the money in their investment portfolios to:

  • Fund their retirement (88 percent)
  • Provide an inheritance for their family (43 percent)
  • Use as income (35 percent)

According to the study, 73 percent of the affluent in Florida consider themselves to be balanced investors, 20 percent are conservative and 5 percent are aggressive investors.

"A balanced approach to investing is the safest way to ensure a valuable portfolio come retirement. Having lived and worked through the recession, we're seeing tomorrow's retirees step back and re-evaluate the need for risk," said Jack Ablin, Chief Investment Officer, BMO Private Bank. "They want to retire younger and do more, so they aren't willing to compromise their retirement income on risky investments."

Key National Findings

On a national level, the study found:

  • High-net worth Americans plan to retire at an average age of 56 and feel they need $2.3 million to live out their ideal retirement lifestyle.*
  • Almost all (96 percent) will retire in the U.S. and would like to spend their golden years travelling (81 percent), with family (70 percent), on hobbies (47 percent) and volunteering (42 percent).
  • The average amount of money high-net worth Americans hold in their portfolio is $3.2 million.
  • In terms of how they intend to use the money in their investment portfolios, 85 percent plan to use the money to fund their retirement, 45 percent as an inheritance for their family and 24 percent as income.
  • Over half of wealthy Americans with an investment portfolio consider themselves to be balanced investors, 42 percent are conservative and 5 percent are aggressive investors.

Survey results cited here are from online interviews with a sample of 493 Americans 18 years of age and older who have at least $1 million in investable assets. Surveys were conducted between October 15 and October 28, 2014.

*This survey result is from an online survey that 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.

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.

For more information on BMO Private Bank, please visit: www.bmoprivatebank.com.

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