Data & Research February 18, 2009

More Affluent Boomers Revamp Retirement Plans

More than half of affluent 60-year-olds are changing their retirement plans—double the number from the same survey almost a year ago, according to Bell Investment Advisors.
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The survey found that of those who have changed their retirement plans in the last six months, two out of three are delaying their retirement, with 34% of these planning to work an additional five or more years, according to a release of the results from Bell. More than a third (35%) reported they do not have enough saved to retire.

In response, almost 75% have reduced spending, and nearly half have changed their investments, which is an increase from last year (see “Affluent Boomers Adjust Portfolios Because of Economic Worries“). Among respondents who plan to reduce their spending this year, nearly half (46%) are doing so in order to rebuild their retirement savings.

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Of investors surveyed, 54% estimated they will need $1 to $3 million at retirement, but 42% have invested or saved less than $1 million, according to the survey results. More than half of those Boomers who have decided to delay their retirement cite the same reason for adding more working years to their plans (55%).

The respondents also expressed a lack of confidence in the nation’s financial system. They’ve lost the most confidence in government regulators (34%) and banks and financial institutions (30%).

When it comes to investing, the majority of surveyed Boomers (56%) think the stock market is “too risky for people their age,” Bell said. More than half (61%) of those surveyed plan to make a change in their investment strategy this year, with one-third of them planning to invest more in fixed-income investments. Half of those investors who intend to change are taking a “wait and see” attitude about which direction they will go.

Despite the fear for their nest egg, many of the respondents are optimistic about the stock market: Looking forward, 73% said they expect the stock market to finish 2009 higher than it started, and 43% said they think 2009 will be a year where they increase their wealth.

The survey was conducted by Opinion Research Corporation from January 21 to 29 among a random sample of 514 adults who were born in 1949 and have investable assets in the $1 million range.

Data & Research February 18, 2009

Advisers Eat Their Veggies

As a busy adviser, it might be easy to drop by and pick up some fast food, but how many of you actually do?
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According to a recent study, most financial planners eat less than one serving of fast food per day, although almost 12% eat one to three servings. The study of 300 members of the Financial Planning Association by Vestment Advisors examined that and other health habits of advisers.

So how do advisers keep healthy? Many of you seem to eat your veggies. About 71% of surveyed financial planners have one to three servings of veggies per day, and 19% of them manage to eat three to five. More than half of the financial planners pop a multivitamin daily.

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An overwhelming majority of surveyed advisers do cardio workouts (almost 90%). About 23% of advisers spend more than three hours doing cardio per week, and about 22% spend two to three hours. (It doesn’t specify whether that includes running from meeting to meeting.) Furthermore, almost three-fourths of advisers pump iron or some other kind of strength training each week.

Clients Giving You a Headache?

How much medication does your job require? More than half of respondents need pain killers on occasion; about 10% use over-the-counter pain medication (e.g. Advil, Tylenol) daily. It doesn’t specify which kind of prescriptions, but almost half (46%) of respondents said they use prescriptions daily. More than a quarter of respondents (about 27%) never use them.

Sleep might not come as easy these days. About a quarter of advisers said that work affects their sleep. The largest number get about 6 to 7 hours of sleep (60%). One-fifth of advisers get that full 8 hours, but about the same amount of advisers get only four to six hours.

Since the financial crisis, the report found an increase in adviser stress levels (see “Advisers Feel Market Stress’). Has the stress led them to drink? Apparently not yet. The large majority of surveyed advisers (about 73%) consume one or fewer alcoholic beverage per day. The rest reported having one to three drinks daily.

But advisers can’t go without their coffee. Most advisers (about 60%) consume one to three caffeine servings every day. That might be part of the reason why so many of the respondents (87%) say their energy level is enough to get them through the day—and, as you know, this business can be tiring.

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