For "complete" retirement planning, there is more required than the usual "meat and potatoes" approach of financial preparation. Recent research shows that the retirement planning needs are changing.
Pre-retirees report that they are more anxious about the emotional adjustment to retirement than they are about financial security. Once over that barrier, the retirees worry about health and long-term care, and not so much about having income to sustain their lifestyle.
Our findings confirm that the wealthy investors are focused on:1) Liquidity: Wealthy pre-retirees want to reach a certain asset or dollar level before they retire. In contrast, age is the retirement trigger for pre-retirees with fewer assets.
2) Longevity: More than half of wealthy retirees feel unprepared for health issues and long-term care. This is an opportunity for Financial Advisors to add far more value to their clients.
3) Legacy: 51% of retirees plan to leave assets to heirs and charity. As a result, many maintain and even increase equity holdings after retirement. Retirees in their eighties, for example, have equity levels similar to investors in their fifties.
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