A majority of affluent Americans (those with investible assets of $1m or more) plan to retire young and stay active in their later years, according to a study by BMO Private Bank.
The study is a part of BMO Private Bank’s Changing Face of Wealth series examining trends among America’s affluent.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the study, wealthy Americans plan to:
Retire young: One-in-five plan to retire before the age of 40; the average age of retirement for high-net worth Americans is 56.
Live in the United States: Ninety-six percent of affluent Americans plan to live in the United States during retirement, with 81% planning to spend their time traveling.
Continue working: Twenty-one percent plan to continue earning an income in retirement through working part time; a similar percentage intend to start a new career (21%) while 11% hope to start their own business.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBMO Private Bank president Darrel Hackett said, "It’s great to see that high-net worth Americans have a positive outlook on retirement and plan to retire young and stay active during their golden years. Regardless of your income level, it’s important to plan for your retirement future and have a wealth plan in place that includes a retirement component tailored to your specific situation and lifestyle."
Hackett also noted that previous BMO Private Bank research has shown that affluent Americans feel that they need, on average, $2.3m to fund their ideal retirement lifestyle.
The study also revealed that nearly all respondents (99%) say they currently have an investment portfolio or share one with their spouse, with an average value of $3.2m. Forty-three percent of wealthy Americans have a portfolio that is worth more than $1.5m.
The study found:
Eighty-five percent of affluent Americans plan to use money in their portfolio for retirement, with 45% planning to use it as an inheritance.
Only 5% consider themselves to be aggressive investors, whereas 42% are conservative and 53% are balanced.
Women have more money in their portfolios than men with women holding, on average, $4m compared to $2.8m for men.
BMO Private Bank chief investment officer Jack Ablin remarked, "A balanced approach to investing is the safest way to ensure a valuable portfolio come retirement. Having lived and worked through the recession, we’re seeing tomorrow’s retirees step back and reevaluate the need for risk. Affluent Americans want to retire younger and do more, so they aren’t willing to compromise their retirement income on riskier investments."
