Data & Research October 23, 2023

US Workers Expect AI to Extend Human Longevity, Increase Retirement Needs

A Nationwide survey found that Americans are bullish on artificial intelligence but less confident in their ability to pay for health care costs at increasingly older ages.

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As artificial intelligence improves medical capabilities that can allow humans to live longer, Americans could be paying for health care costs for significantly longer than they expect, according to the annual Nationwide Retirement Institute Health Care Cost in Retirement survey.

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Among respondents, 26% said they expect AI advancements in health care to add more than a decade to their lifespan. Of those, Generation Z respondents said they expect AI to add an average of 15 years to their life, Millennials 12 years, Generation Xers 8 years and Baby Boomers 9 years. The head of the Nationwide Retirement Institute agreed with the assessment but noted the continued income needs that will come with longer lifespans.

“While the potential of living longer is good news, dipping into your retirement savings for an extra decade requires planning,” Kristi Rodríguez, senior vice president of the Nationwide Retirement Institute, said in an email response. “Unfortunately, too few Americans are financially planning for the additional health care costs of an extended retirement. Americans who work with financial professionals tell us they have clear expectations that managing health care costs should be a part of their planning discussion.”

To that point, more than half of respondents (59%) said they are not confident in their ability to afford health care costs as they age, and 57% worry about being able to pay for their partner’s caregiving, according to the survey.

To save money, almost one out of every five adults (18%) delayed health care actions such as a medical procedure, physical exam or renewing prescriptions in the past 12 months, Nationwide found. To find additional savings, 10% of Americans considered downgrading their health insurance plan because of high inflation. This decision included 19% of Gen Z, 11% of Millennials and 14% of Gen Xers.

“In a country where 100 million people live with medical debt, it’s no surprise that two-thirds of U.S. adults (66%) are terrified of what health care costs may do to their retirement plans and worry that a single large health care issue could ruin their finances for years to come,” Nationwide noted in a statement. “Even more Americans (72%) say that one of their top fears in retirement is their health care costs becoming out of control.”

According to the same Nationwide dataset, most Americans with chronic conditions (69%) said they do not have a written financial plan for how to, in retirement, pay for the health care costs related to their condition. Additionally, nearly seven in 10 Americans (68%) do not work with a financial professional.

“Our survey shows that Americans need more knowledge, guidance, and ongoing support to make informed decisions about their financial plans,” Rodríguez added in a statement. “By incorporating health care into financial planning conversations, financial professionals can help clients better prepare for the rising costs of health care.”

The Nationwide report was conducted online in the U.S. by the Harris Poll from August 28 to September 11, surveying 1,260 adults aged 18 and older and residing in the U.S., including 301 from Generation Z, 310 Millennials, 307 from Gen X and 342 Baby Boomers.

Deals & People October 23, 2023

Advisory M&A News – 10/23/23

Mercer acquires Kingfisher Capital; Sequoia to add M Capital Advisors; Charles Drew Group joins UBS.

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Sequoia Financial Group to Acquire M Capital Advisors

Sequoia Financial Group LLC, which provides wealth management and retirement planning, announced it has entered into an agreement to acquire M Capital Advisors. The firms expect the transaction to close by Oct. 31.

M Capital, based in Nashville, Tennessee, with an office in San Antonio, has $930 million in assets under management as of September 30. Its clients are high-net-worth individuals, families and institutions.

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“Becoming part of Sequoia Financial will provide M Capital clients with broader and more tailored wealth management solutions, especially in the high- and ultra-high-net-worth areas, supported by Sequoia’s extensive operational, technological, and financial resources,” Frank Mastrapasqua, founder and chairman of M Capital, said in a statement. “Sequoia’s talented national wealth advisor team is second to none.”

Formed in 1993, M Capital employs a team of 13 professionals. Alongside Frank Mastrapasqua, the firm is led by CEO Mauro Mastrapasqua, chief portfolio strategist Edwin Barton, CIO Patrick Snell and principal and portfolio manager Claude Koontz.

Charles Drew Group Joins UBS

UBS, which provides wealth management and retireman plan advisement, announced that a four-person adviser team, the Charles Drew Group, has joined the firm. The team will be based out of UBS’ Washington, D.C. office, part of its Philadelphia D.C. wealth management market.

The team, which manages $460 million in client assets, is led by managing director and financial adviser Charles Drew and includes financial advisers Bennett Kavlick and Matthew Tomczuk and client service associate Justin Hatch.

“Charles is a very talented adviser with decades of experience, and we are proud to welcome him and his team to UBS,” Julie Fox, a Philadelphia D.C. market executive at UBS Private Wealth Management, said in a statement. “Hiring productive advisers like Charles is a key priority for us in the important Washington, D.C. market.”

Previously Drew was a senior financial adviser with Merrill Lynch Wealth Management in Washington, which he joined in 1994. He was named to the Forbes/Shook Research Best-in-State Wealth Advisors list for 2023.

Mercer Advisors Acquires Kingfisher Capital LLC

Wealth management and financial planner Mercer Global Advisors announced the acquisition of Kingfisher Capital LLC, a wealth management firm located in Charlotte, North Carolina.

“KC is an ideal fit for us,” Dave Welling, CEO of Mercer Advisors, said in a statement, “Together with our already strong presence in the South/Southeast, we present a formidable juggernaut. We are thrilled they are joining the Mercer Advisors team and look forward to working together to deliver meaningful results for our shared clients.”

KC was founded by Alexander Miles and H.K. Hallett in 1989. The firm serves approximately 210 clients with assets under management of approximately $630 million.

“After a comprehensive search, we were introduced to David Barton, vice chairman at Mercer Advisors, who leads mergers and acquisitions for Mercer Advisors,” Hallett said in a statement. “After meeting with Dave, we knew we had found the right partner that was not only a national family office RIA with institutional investment capabilities, but also a firm with dozens of estate planning lawyers, a dedicated team of CPAs and other tax professionals, and corporate trustee and other services in-house, and all under one roof.”

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