Affluent Still Lack Financial Plans

Affluent individuals are well aware of the need to save for the future, but most have yet to develop a plan for achieving their long-term goals.

Only 65%, for instance, have a comprehensive financial plan that incorporates investment, retirement and estate planning. Even smaller percentages of the affluent have completed an assessment of how long their assets will last during retirement (58%), explored a plan for budgeting and spending (41%) or created an investment plan to build assets for a child’s education (33%).

Spectrem found that 45-to 65-year-olds are the most likely of three age groups to have completed a comprehensive financial plan and explored a plan for budgeting and spending. The oldest group is the most likely to have assessed how long their assets will last, and the youngest group is the most likely to have planned for a child’s college education.

Oftentimes, affluent individuals do not have the time or interest in doing the research necessary to make informed decisions, but they realize that work needs to be done if they are to reach their goals. This, of course, signals opportunity for advisors who initiate planning-related conversations and offer their assistance to clients.

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