Almost half of affluent baby boomers have never discussed their needs for retirement with a financial advisor, according to new research conducted by the Phoenix Affluent Marketing Service (AMS), which conducts the largest continuously fielded syndicated survey of affluent households in the U.S. The estimated 10.5 million baby boomers moving towards retirement comprise 45 percent of all affluent households.
The Phoenix AMS survey found that 36 percent of older baby boomers, age 50-59, with an average net worth (not including primary residence) of $1.7 million plan to retire in the next 6-10 years and 28 percent plan to retire in less than 5 years. Of those planning to retire, 62 percent do not have a written financial plan for retirement and 27 percent have never met with a financial advisor to discuss their needs for retirement.
Furthermore, the vast majority of younger affluent boomers, age 41-49, with an average net worth of over $900,000, who have a longer retirement horizon of between 6-15 years (49 percent), have no written financial plan for retirement (64 percent). In addition, 31 percent of younger affluent boomers have never met with a financial advisor regarding retirement issues.
The Phoenix Affluent Marketing Service (AMS) findings are drawn from its surveys in December, 2005, representing 1,083 interviews. The data is weighted to be representative of affluent households nationally (minimum of $250,000 in investable assets and/or $150,000 household income).
« Affluent baby boomers have unique challenges when it comes to retirement planning and represent one of the largest opportunities for financial services firms, » said David Thompson, vice president, affluent practice at Phoenix Marketing International. « Mass marketing to this group of high net worth individuals simply doesn’t work and requires a more thorough understanding of the affluent lifestyle, attitudes and behaviors. It’s obvious from our research that there’s lots of low hanging fruit yet to be picked. »
Additional findings from the Phoenix AMS survey show:
* Older affluent boomers have $2.3 million in total assets, on average
* Younger affluent boomers have $1.9 in total assets, on average
* Older affluent boomers’ average investable assets are $1.1 million
* Younger affluent boomers’ average investable assets are $905,000
About The Phoenix Affluent Marketing Service (AMS) Program
The Phoenix Affluent Marketing Service (AMS) program is a continuously fielded survey of affluent and high net worth households throughout the U.S., and provides an ongoing summary of affluent and high net worth household investment, financial and affluent lifestyle behaviors and attitudes.
For more information about the AMS program, contact David Thompson at 860.651.8400 or by email at David.Thompson@PhoenixMI.com. Or visit the Phoenix Marketing International web site at www.phoenixmi.com.
About Phoenix Marketing International
Phoenix Marketing International was founded in 1999 by Allen DeCotiis, Ph.D. and Martha Rea, MA. Phoenix is a privately held company. Phoenix has offices in Rhinebeck,(NY), Somerset (NJ), Detroit, Boston, Salisbury (MD), Chicago, Los Angeles, Tampa and Miami. Phoenix was founded to integrate industry expertise, research, direct marketing, modeling, and multicultural expertise to help clients address their marketing needs. Through a combination of industry experience, research, marketing, analytic modeling and multicultural expertise, Phoenix partners with its clients to solve complex business issues and achieve a significant return on marketing investment.
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Source: Phoenix Marketing International
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