Average Net Worth At Retirement
Wealthy investors have worked towards and dream of living a comfortable retirement phase, where they won’t have to worry about running out of savings. However, your post-retirement lifestyle will depend on your average net worth at retirement. Investors that have $5 million to $500 million in liquid investment assets can plan for their dream retirement with our wealth managers’ assistance at Pillar Wealth Management. Our experts can inform you about the minimum net worth you need to achieve a comfortable retirement. You can learn about some useful investment strategies in our special guide for investors with $10 million or more.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
Table of Contents
The Challenges of Retirement
Most people look forward to retiring in the future. This life-stage is typically less hectic than your earlier career life. It also offers you more time to pursue your hobbies and interests. Many wealthy investors alternate between living a quiet and comfortable life in a sunny state and traveling the world after retirement. However, retirement also brings numerous challenges with it. Please schedule an exclusive free appointment with one of our wealth managers to learn about preparing for retirement.
Some common retirement challenges include:
Sustaining Your Savings
Retirement is the life-stage during which you are no longer actively earning income. This means you will need to rely on your savings to maintain your lifestyle. However, this also means your savings will eventually start to deplete.
This can seem unavoidable in many cases, especially if you intend to live the high-spending lifestyle you enjoyed before retirement. In fact, many wealthy investors would consider wealth protection to be their biggest concern during retirement. You can learn more about the importance of wealth protection during retirement by reading our special book The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Paying for Healthcare
Healthcare costs can also be incredibly high for people around retirement age. Old age often brings new health problems with it. Some of these may require long-term treatment, while others could require expensive surgeries. If your health insurance does not cover treatment, you may be hit with an unexpectedly high bill that eats into your retirement savings.
Wealthy investors with millions in savings may never have to worry about going bankrupt due to high hospital bills. However, they may need to downgrade their lifestyle if they wish to stretch out the remainder of their savings for as long as possible.
Funding Your Childrens’ Education
Wealthy investors may also struggle to fund their children’s education after retirement. It’s no secret that the cost of post-secondary education is continuously increasing. In addition to this, advanced education degrees are quickly becoming a requirement in most industries.
Anyone that wishes to pay for their children’s education without digging into their savings will need to plan their retirement strategy well in advance. Please speak with one of our wealth managers to learn about different retirement planning strategies.
Free yourself from worrying about your children’s education by setting up a robust retirement plan that accounts for college costs beforehand.
What Should Your Average Net Worth at Retirement Be?
Everyone wishes to attain a certain net worth by the time they retire. This net worth may be based on your current wealth growth rate or simply your desired net worth for the future. You may be wondering, “what is the average net worth of a retirement age individual.” The answer varies from state to state. However, individuals between the age of 65 and 74 have an average net worth of $266,000.
If you intend to retire by the time you hit 60, you may be wondering, “what is the average net worth of a 60-year old?”. The figure is around $200,000 in most cases.
Wealthy investors should strive to boost their net worth as much as possible before they hit retirement age. One way to do this is to invest in assets with a high growth rate. We discuss such investments in our portfolio expansion guide.
Can You Retire With 1 Million Dollars?
If you and your retirement partner plan on living out a comfortable retirement, you may be wondering, “can a couple retire on 1 million dollars?” We would say 1 million dollars is a suitable amount of savings for retirement. However, this figure may be too small for a wealthy investor with a high spending lifestyle.
A good rule for calculating your minimum retirement savings target is to multiply your salary by ten. So if you were earning $250,000 per year, you should aim to save $2.5 million before you reach your retirement age. By accruing this level of savings, you can live out a comfortable retirement without worrying about downgrading your spending lifestyle.
How to Retire Comfortably With Low Net Worth
If you are approaching retirement age and do not have a high net worth, you may be concerned about whether or not you will be able to live comfortably during your retirement. The great news for wealthy investors is that there are a variety of ways to sustain a luxurious retirement lifestyle, even without having a high net worth.
A robust retirement plan can keep your savings secure during retirement and help you set up different ways to fund your post-retirement lifestyle. Some methods for this include:
Investing in the Right Assets
If you are a wealthy investor, you may already be familiar with the immense wealth-building potential certain assets offer. These assets may provide high profits or rapidly appreciate in value over time.
It’s not uncommon for high net worth or ultra-high net worth individuals to invest in special stable assets that will provide passive income during retirement. This approach leaves you with extra disposable income but without the stress associated with working. We discuss different ways to improve your portfolio performance in our special guide.
Finding the Right Health Insurance Plan
As mentioned earlier, many retirees are forced to pay high hospital bills out-of-pocket because their insurance doesn’t cover specific treatments and procedures. You can avoid such scenarios by choosing the right health insurance plans. However, it can be challenging to find a suitable plan to keep you and your family covered if you are unfamiliar with the various options out there.
A professional insurance planner or a wealth manager can help you find a health insurance plan that offers suitable coverage during retirement. Please set up an exclusive free consultation with our wealth managers to discuss various health insurance options.
Moving to a More Affordable State
If you don’t mind moving following your retirement, you will have many different options available to you. It’s not uncommon for retirees to move to states that are more affordable to live in. This could be states that are more tax-friendly and where the property rent is lower.
You may also be interested in selling your home and moving into an apartment that is easier and more affordable to maintain. This route can minimize the amount you spend on necessities without forcing you to give up on other spending habits.
Why You Should Use a Wealth Manager for Retirement Planning
If you are concerned about having a high enough net worth before retirement, you should seek to create a robust retirement plan. This is made possible by using the expert services of a retirement planner or a wealth manager. However, we would say a wealth manager is better suited to handle wealthy investors’ retirement needs than an ordinary retirement planner is.
Some reasons to use a wealth manager for retirement planning include:
Offering Advice for Wealthy Investors
Wealth managers are distinct from ordinary financial advisors because they offer services specifically for individuals that have a high net worth or even an ultra-high net worth. At Pillar Wealth Management, our wealth managers provide services for wealthy investors with $5 million to $500 million in liquid investment assets.
Wealth managers have plenty of experience planning retirement for high net worth as well as ultra-high net worth individuals. They understand the various challenges they face and can recommend the best wealth protection strategies for wealthy individuals.
More Comprehensive Retirement Planning
Wealth managers also offer a large number of services compared to ordinary retirement planners. This includes asset allocation, portfolio analysis, and tax planning. Each of these services can help you towards creating a more comprehensive retirement plan that utilizes your various assets.
After all, wealth managers excel at managing investments and offer guidance on investment strategies to help you meet your retirement goals. You can learn about how to select a good financial advisor using our special guide.
Simple Fee Structure
Wealth managers also stand apart from ordinary financial advisors and retirement planners due to their fee structure. Retirement planners often charge their clients an hourly rate for their services or a flat fee for retirement plans.
Wealth managers, on the other hand, charge their clients a fixed annual fee based on the value of the assets they are managing. The advantage of this pricing structure is that you can use their services multiple times without incurring extra charges.
Why Choose Pillar Wealth Management?
There are plenty of retirement planners and wealth management firms across the country. However, wealthy investors with $5 million to $500 million in liquid investment assets often choose Pillar Wealth Management to handle their retirement planning needs.
Our clients pick us for retirement planning for various reasons. This includes:
At Pillar Wealth Management, our wealth managers have spent six decades serving wealthy investors. Their expertise grows with each passing year, and they are well equipped to handle all your retirement planning and wealth management needs.
We have assisted numerous clients with retirement planning. This includes young investors that wish to set up their dream retirement using a long-term plan. We have also assisted elderly clients who required last-minute advice before beginning retirement.
Each of our wealth managers possesses extensive knowledge in areas related to retirement planning, asset allocation, portfolio analysis, and tax planning. They can utilize their expertise to guide you during the retirement planning process and recommend special strategies to meet your retirement planning goals. You can read about some of our investment strategies in our special guide for investors with $10 million or more.
Our Personalized Plans
At Pillar Wealth Management, we believe in providing each of our clients with personalized services. This includes customized retirement plans that take your financial background and assets into account. Our goal is to make the retirement planning process as easy and worry-free as possible. You can execute advanced investment strategies using our wealth managers’ assistance every step of the way. Please contact us for an exclusive free consultation and get on track with achieving your dream retirement.
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