First of all — what is a mass affluent? According to financial experts, a mass affluent is someone with $50,000 to $250,000 in disposable assets. Mass affluents in Los Angeles and San Francisco were surveyed recently by a leading lender in search of attitudinal trends. A significant trend is that 34 percent of mass affluent individuals withdrew money from their long-term assets to meet short-term commitments. Other key findings relate to their thoughts and concerns about the future.
According to the study, 57 percent of the mass affluents are considering postponing their retirement by a few years. An overwhelming majority (89 percent) are concerned about a major long-term care planning issue – health care costs.
The other key long-term issues this group is concerned about are retirement assets that last a lifetime (83 percent) and maintaining their lifestyle (80 percent).
After long-term financial issues the mass affluents concerns are also:
- Healthcare legislation (80 percent)
- Future of Social Security benefits (77 percent)
- Budget deficit (77 percent)
- Presidential election (71 percent)
Most in this group either has paid or expects to pay for their children’s college education.
The data from the mass affluent individuals was also separated by age group. Those who were younger tended to be more concerned about their financial futures on a number of issues. Gen-Y adults are concerned about their ability to retire, about long-term health care needs and are more inclined to work on home-improvement projects rather than buy a new home.
Estate planning considers a number of issues including long-term health care planning and providing for heirs. It is advisable to consult with a professional to put one’s estate in order so that one’s wishes can be honored.
Source: StreetInsider.com “Mass Affluent Americans Push Back Retirement Date and Take Steps to Get on Track in Greater Numbers,” April 25, 2012