The survey, conducted by SpectremGroup, also found that less than 10% of surveyed retirees said they will change advisers in the future.
Nearly 90% are comfortable their retirement savings will be adequate for their retirement years, according to the study. Those who are older show a higher level of confidence. (It should be noted that the survey was conducted in August.)
HNW Retiree Spending
High-net-worth retirees actually spend more on income taxes than on health care, according to a release of survey results.
The survey found that income tax is the highest average annual expense by a large margin for the respondents—an average of $25,226. Once real estate, capital gains, and personal property tax are added in, the total average annual tax expense was $40,578, or about 4% of the respondents’ net worth, according to the release.
Securian said the survey also found that the respondents’ concerns about health care issues outstripped their actual health-care outlays. Nearly one-third of respondents said before they retired that health care would be their largest expenditure. However, in retirement, health care was actually only 12% of their expenses with an annual average of $6,681.
More money was spent on travel, cars, charity, real estate taxes, food, gifts, and mortgages, the survey found.
The poll found the bulk of current retirees’ income comes from Social Security (96%) and pension plan distributions (60%).
Spectrem surveyed 225 retirees between the ages of 70 세 and 75. The respondents had a net worth of at least $1 million.
More survey results are available here.