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March 31, 2015 13:00 ET

What Retirement Looks Like for Wisconsin's Affluent: BMO Private Bank Study

- High-net worth Wisconsin residents plan to retire at an average age of 62 and believe they need $2.3 million for an ideal retirement

- Ninety-five percent want to retire in the U.S.

- Travelling, seeing family and loved ones and focusing on their hobbies are how the affluent in Wisconsin would like to spend their golden years

MILWAUKEE, WISCONSIN--(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 Wisconsin residents (defined as those with investible assets of $1 million or more). The study is part of a series examining trends among America's affluent.

According to the study, Wisconsin's wealthy:

  • Will retire, on average, at the age of 62
  • Believe they will need an average of $2.3 million to live out their ideal retirement lifestyle (the same as the national average)*
  • Plan to stay in the U.S. during their retirement years (95 percent)
  • Want to spend their later years travelling (80 percent), spending time with family (80 percent), focusing on their hobbies (60 percent) and volunteering (53 percent)

"Regardless of your income level, it's critical that you start planning for your retirement as early as possible," said Steve Johnson, Regional President, North Central States, BMO Private Bank. "Everyone's retirement plan will be different. That's why involving a financial professional is so important in putting together an overall financial roadmap - one that helps create the conditions for a stress-free retirement."

Investing Profile of High-Net Worth Wisconsin residents

The study also examined how the affluent in Wisconsin manage their investments, finding that high-net worth Wisconsin residents intend to use the money in their investment portfolios to:

  • Fund their retirement (85 percent)
  • Provide an inheritance for their family (50 percent)
  • Use as income (35 percent)

According to the study, 83 percent of affluent individuals in Wisconsin consider themselves to be balanced investors, 10 percent are conservative and 8 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 reevaluate the need for risk," noted Jack Ablin, Chief Investment Officer, BMO Private Bank. "Affluent Americans 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 investible 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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