CHICAGO, IL--(Marketwired - Feb 20, 2014) -
- The state's average is $400k lower than the national average of $2.3 million
- Eighty-four percent of the wealthy in Illinois feel that their children are prepared to manage their inheritance
- Ninety-three percent feel that they are better off than their parents; 43 percent feel that their kids will be more wealthy than them
According to a study released today by BMO Private Bank, high-net worth individuals in Illinois (those with investible assets of $1 million or more) reported that they require, on average, $1.9 million to achieve their ideal retirement lifestyle -- $400,000 less than the national average. The study is the fourth in a series by BMO Private Bank examining trends among the affluent in the United States.
Moreover, the study found that over 90 percent of Illinois-based high-net worth individuals are confident that they can reach their retirement lifestyle aspirations.
"The affluent in Illinois know what they need to reach their retirement lifestyle goals, and they're confident they can get there," said Zach Lazar, President, Illinois & Florida, BMO Private Bank.
Wealth and the Next Generation
The study also examined issues related to the inter-generational transfer of wealth and found that, among the affluent Illinois residents with children:
- Eighty-four percent feel that their children will be prepared to manage their inheritance effectively.
- Ninety-three percent of respondents in Illinois feel that they are financially better off than their parents -- a full 13 percent above the national average.
- Forty-three percent feel that their children will be more successful than them.
- Just 25 percent feel that their children will be worse off financially, 10 points below the national average of 35 percent.
"While the affluent in Illinois have some concerns, they are largely positive about the prospects for the next generation -- including their children's ability to manage their inheritance and succeed financially," added Mr. Lazar. "All in all, the results bode well for the future."
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.