Even rich investors ‘doing all the right things’ think they’ll need a ‘miracle’ to retire – Express

Moneybox advises on saving money for retirement

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The 2021 Natixis Global Retirement Index asked Americans what amount of money they would need to retire and enjoy decades of financial security.

The survey gave respondents four options to choose from: a)$300,000, b) $750,000, c) $1,7 million or d) a miracle. The answer, according to the 2021 Natixis Global Retirement Index released is choice d — a miracle.

The company surveyed people with at least $100,000 (£73,135) in investable assets and half of respondents with a net worth of $1million (£731,684) or more said they were resigned to the fact that they would have to work longer than they first thought.

This is despite the fact that the 750 survey respondents had a median net worth of $450,000 (£330,486) and had saved on average more than 16 percent of their salary.

David Goodsell, executive director of the Natixis Center for Investor Insight, said he was shocked by the results.

“What shocks me is that these are the people doing pretty much all the right things and even that isn’t enough to feel secure.”

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Man in suit in city

Even the rich worry about having enough to retire (Image: Getty)

How much do I need to retire?

Reasons for people’s doubts were rising levels of public debt, inflation and interest rates.

Although these are all valid reasons for concern, people might just be overestimating how much they need to retire comfortably.

Independent consumer champion Which? said that many people overestimate how much they’ll need to live on in retirement, thinking that they’ll spend the equivalent of their wages.


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On its website, it stated: “The common perception is that you’ll need between half and two-thirds of the final salary you had when you were working, after tax, to maintain your lifestyle once you retire.

“This is because you might have paid off the mortgage, will no longer be bringing up children and won’t face the cost of commuting once you’ve retired.”

Which? surveyed more than 6,800 retirees in 2021 about their spending habits, to find out what the true cost of retirement was.

It found that households with two people spent around £2,170 a month (£26,000 a year) which, perhaps surprisingly, only dropped by four or five percent during the coronavirus pandemic.

Wealth infographic

Where are the ultra wealthy? (Image: Express)

Which? said: “This covers all the basic areas of expenditure (which had a combined cost of £18,000 per year on average) and some luxuries, such as European holidays, hobbies and eating out.

“Aiming for this level of income will provide a good platform for your retirement. You’d need £41,000 a year if you include luxuries such as long-haul trips and a new car every five years.”

The research found priorities changed as people got older and travel and holidays are a very important part of retirement for older people, who generally spent £4,640 a year on this part of their life.

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“Priorities change slightly as you move through your retirement years.

“Our members tend to spend relatively less on food and drink, housing payments and recreation as they get older, but more on utility bills, health, and insurance premiums.”

The research concluded that to retire comfortably most people would need £19,000 a year and to have a luxurious retirement, they would need to increase this to £31,000.

For couples that would mean £26,000 a year to live on comfortably, or £41,000 for a more luxurious retirement.