When it comes to their current financial savings for retirement and expectations about finances in retirement, the affluent are more prepared than those with lower asset levels. In fact, the median amount already saved for retirement by the affluent is $500,000, which far exceeds the median ($60,000) amount that people with less than $250,000 in assets say they have saved for retirement.A quarter (27%) of the affluent cite healthcare costs as their primary day-to-day financial concern as compared with 16% of those with less than $250,000, who instead say “paying the bills” is their primary concern (43%). The affluent estimate out-of-pocket healthcare expenses in retirement at $60,000 and those with less than $250,000 estimate $49,000.
|Investable assets <$250,000||Affluent(investable assets $250,000+)|
|Amount saved for retirement (median)||$60,000||$500,000|
|Amount needed for retirement (median)||$400,000||$750,000|
|Estimated out-of-pocket healthcare expenses in retirement (median)||$49,000||$60,000|
|Number of years in retirement (median)||20 years||25 years|
|Withdrawal rate from savings (median)||10%||7%|
|% of current household income needed in retirement (median)||65%||60%|