Affluent investors are recapturing confidence in the economy, but less wealthy households, more cautious to participate with the market, have not profited as much from the recovery. Therefore, these Mass Affluent investors’ personal concerns are more strongly felt than those in wealthier households, according to a Spectrem’s Millionaire Corner Affluent Market Insights study.
Seventy percent of Mass Affluent investors with a net worth between $100,000 and $1 million (not including primary residence) mention maintaining their current financial position as their primary personal concern, followed by 62 percent of Millionaire households and 55 percent of Ultra High Net Worth investors with a net worth between $5 million and $24.9 million.
Likewise, they are much more concerned about their retirement. Over sixty percent (61 percent) are concerned with being able to retire when they wish, compared with 44 percent of Millionaires and just 30 percent of UHNW respondents. More than two-thirds (67 percent) are concerned that their savings will not sustain them through their retirement (a concern of 48 percent of Millionaires and 32 percent of the UHNW).
Across all Affluent wealth levels, the concern of their children or grandchildren’s financial situation has decreased. Fifty-eight percent of Mass Affluent investors cite this as a concern, while 61 percent of Millionaire households feel this way and only 57 percent of UHNW investors.
The Affluent Market Insights study is based on Spectrem Group’s monthly online research with investors across all wealth segments.
Mass Affluent investors are significantly less likely than their wealthier associates to say they enjoy investing. Just over one-third (35 percent) said investing is something they do not wish to give up, compared to 53 percent of Millionaire households, and 62 percent of the UHNW.
Similarly, Mass Affluent respondents were the least likely to be involved with the day-to-day management of their investments (40 percent, vs. 51 percent Millionaires, and 61 percent of the UHNW).
Not surprisingly, the Affluent Market Insight study found that the level of risk associated with investments is less of a concern as wealth increases, from 88 percent of Mass Affluent to 94 percent of UHNW.
For more information on Spectrem Group's Affluent Market Insights Report, click here