SOURCE: BMO Private Bank

BMO Private Bank

February 20, 2014 09:00 ET

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

KANSAS CITY, 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 of state's wealthy feel their kids will be worse off than them

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 wealthy are feeling confident about their ability to achieve their ideal retirement lifestyle, versus 94 percent nationally. 

"The markets have performed quite well over the last few years so I'm not too surprised that high-net worth Missourians are feeling good about being able to afford the type of retirement they want," said Kelli Glynn, Managing Director (Kansas City), BMO Private Bank. "However, market conditions can change quickly. The best approach is to have a financial plan in place, know the amount of risk you are willing to take on and maintain a well-diversified portfolio."

Wealth and the Next Generation

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

  • Thirty-seven percent plan to leave their wealth 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 than them.
  • Of the 38 percent who feel that their kids will be worse off than them, 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 encouraging to see that such a high percentage of affluent parents feel confident in their children's ability to manage their inheritance and that they are taking the time to teach them about money matters," noted Ms. Glynn. "I'm a firm believer that providing children with sound fiscal management skills is an important parental responsibility."

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 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.

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