SOURCE: BMO Private Bank

BMO Private Bank

February 20, 2014 08:00 ET

BMO Private Bank Study: Affluent Missourians Report They Need an Average of $2.1 Million for Retirement

ST. LOUIS, MO--(Marketwired - Feb 20, 2014) -

  • An overwhelming 90 percent of Missouri's wealthy are confident in their ability to achieve their ideal retirement lifestyle
  • Wealth & the next generation: 84 percent feel their children are prepared to manage their inheritance
  • However, more than one-third feel their kids will be worse off than they are

According to a study released today by BMO Private Bank, high-net-worth Missourians (those with investible assets of $1 million or more) reported that they require, on average, $2.1 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 90 percent of Missouri's affluent are feeling confident about their ability to achieve their ideal retirement lifestyle. That compares to a 94 percent confidence rate nationally.

"Planning for retirement is among the most important financial decisions any of us will make," said Dino Cannella, Managing Director, St. Louis Region, BMO Private Bank. "Planning and preparation give you the confidence to enjoy your golden years as well as have something to pass on to the next generation." 

Wealth and the Next Generation

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

  • Thirty-seven percent of their wealth will be left to their kids.
  • Eighty-four percent feel that their children are well prepared to handle their inheritance.
  • Nearly two-thirds (65 percent) spend time talking to their kids about money management.
  • Twenty-five percent feel that their offspring will be better off financially than they are.
  • Of the 38 percent who feel that their kids will be worse off than they are, 67 percent believe that this will largely be because their children will not be as successful in their professional lives as they were.

"It's never too early to start helping our children learn to manage money," noted Mr. Cannella. "Our study shows that a majority of high-net worth parents in our state understand the importance of helping their children learn about the complexities of managing money."

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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