SOURCE: BMO Private Bank

February 20, 2014 09:00 ET

BMO Private Bank Study: Affluent Americans Report They Need an Average of $2.3 Million for Retirement

CHICAGO, IL--(Marketwired - Feb 20, 2014) -

  • An overwhelming 94 percent of the country's high-net worth are confident in their ability to achieve their ideal retirement lifestyle
  • Wealth & Generation Next: 85 percent feel their children are prepared to manage their inheritance
  • However, more than one-third feel their kids will be worse off than them

According to a study released today by BMO Private Bank, high-net worth Americans (those with investible assets of $1 million or more) reported that they require, on average, $2.3 million to fund their retirement. The study is the fourth in a series by BMO Private Bank examining trends among the affluent in the U.S.

The study also found that 94 percent of the nation's affluent are feeling confident about their ability to achieve their ideal retirement lifestyle.

"It shouldn't come as too much of a surprise that so many are upbeat about being able to afford the retirement of their dreams, given that our study also found that more than 90 percent of high-net worth Americans are currently feeling good about how their investments are performing," said Terry Jenkins, President & CEO, BMO Private Bank.

"However, it's important to keep in mind that market conditions can change quite quickly and have a negative impact on people of all income levels. It's critical that they protect their retirement savings against market fluctuations as best as possible by ensuring that their portfolios are well diversified." 

Wealth and Generation Next

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

  • Thirty-six percent of their wealth will be left to their kids.
  • Eighty-five percent feel that their children are well prepared to handle their inheritance.
  • Seventy percent spend time talking to their kids about money management.
  • Forty-three percent feel that their offspring will be better off than them.
  • Of the 35 percent who feel that their kids will be worse off than them, 63 percent believe that this will largely be because of the future state of the economy.

"With wealth comes complexity, so it's encouraging to see that so many affluent Americans feel that their kids are prepared to handle their inheritances and are taking the time to teach them about personal finance issues," noted Mr. Jenkins. "Financial literacy starts at home. It's incumbent on all parents to begin teaching kids about money matters early on and to be as transparent as possible about family finances."

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.

Contact Information