Most people with at least $200,000 in assets are confident they have enough for a comfortable retirement, but they fear unanticipated events could distrupt their plans, according to a new survey by Legg Mason.
The survey of 500 U.S. residents in that wealth category found that 88 percent are confident they will have the lifestyles they want in retirement and 86 percent feel confident they will retire at the age they want.
But the respondents also said their two main fears were a catastrophic event that uses up their retirement funds or outliving their savings.
“As a result, we encourage financial advisors and investors to take a realistic approach when planning for retirement,” said Matthew Schiffman managing director and head of global marketing at Legg Mason Global Asset Management. “Have you planned for your long-term living situation? What if you suddenly need assisted living or even greater care? Are you prepared for that event? We all need to be.”
Decisions respondents made that have had a positive impact on their retirement investment success include working with a financial advisor and developing a financial plan, according to the survey.
Seventy percent of the investors surveyed believe the investment environment that future generations face will be more difficult than the environment investors face now. Respondents between the ages of 55 and 64 were most likely to make this prediction, with 82 percent believing it will be more difficult for future generations.
Respondents offered the following advice to younger generations to help secure their retirement goals: start investing early in life; make sure you understand what you invest in; avoid short-term decisions based on emotions; make a plan and stand by it over time; and employ a professional financial advisor.
“Investors over 50 years old today have been through numerous market cycles so their insights and decisions are well tested,” added Schiffman.