Why Millionaires Are Worried About Their Retirement

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Retirement security is one of the top concerns for many people, including millionaires. Yes, even millionaires aren’t confident about whether or not their retirement will be comfortable financially. By millionaires here, we mean having $1 million or more at the time of retirement in investable assets, excluding assets like a house or fine art collection.

Despite such money, many millionaires are worried about having enough money for retirement. So, let’s take a look at why millionaires are worried about their retirement and how they can overcome it.

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What Do Millionaires Have To Say About Retirement?

According to a recent survey from Natixis Investment Managers, about 35% of millionaires say that it will “take a miracle to achieve a secure retirement.” This percentage is very near to the feeling of overall investors (40%).

Natixis Investment Managers interviewed over 8,550 individuals from 24 countries for the survey, including more than 1,600 people with $1 million or more in investable assets.

As well, talking about why millionaires are worried about their retirement, the survey says that 58% of high-net-worth individuals (HNIs) believe they will have to work longer than what they planned to ensure a comfortable retirement.

Moreover, 36% of the respondents believe retirement may not even be an option for them, while 42% noted that they are so worried about it that they try not to even think about it.

Also, 38% of the respondents said that it will be difficult for them to make ends meet without public benefits. About 75% of the respondents believe that high public debt could lead to reduced payments from public benefits going forward, and this would only exacerbate their worries surrounding retirement.

Why Millionaires Are Worried About Their Retirement

A major reason why millionaires are worried about their retirement is that being a millionaire isn’t uncommon anymore.

A 2022 report from Credit Suisse Research Institute found that there are more millionaires than ever before. Capgemini’s World Wealth Report found that the number of individuals with at least $1 million almost doubled from 10.9 million in 2010 to 20.8 million in 2020.

Moreover, a million dollars may not prove enough for retirement now, depending on where you live. For instance, a report from GOBankingRates found that a million dollars in Hawaii will only last for about 10 years. And, if you live in New York, a million dollars won’t last more than 14 years.

Additionally, a study from Northwestern Mutual found that Americans now believe that they need more money than ever to retire comfortably. According to the report, Americans now expect that they need $1.25 million to retire comfortably, compared to about $1.05 million a year earlier. This jump of about 20% is primarily due to a rise in overall costs (inflation).

The Natixis Investment Managers survey found that seven out of 10 respondents see inflation as a threat. Moreover, 65% worry that rising healthcare costs will have a significant impact on their financial security in retirement.

Another reason why millionaires are worried about their retirement is because of their relatively lower savings rate, especially among high-net-worth individuals.

The Natixis survey found that HNIs have accumulated over four times the median assets of the overall population. However, the median retirement savings among the HNIs is just about 2.5 times the median savings of the overall population.

How Much Is Enough For Retirement?

So, if a million dollars is not enough for retirement, then the million-dollar question is: How much is enough for retirement?

Most will say that the super popular 4% rule should be used to determine the amount of money needed for retirement. This rule says that retirees can safely withdraw 4% from their retirement portfolio each year to ensure a comfortable retirement.


Many financial experts, however, believe that the 4% rule is outdated and is no longer feasible. For example, 4% of $1 million is only $40,000 yearly, and this, in general, is less compared to what many individuals are likely used to living on.

Although the above discussed reasons are valid for why a million dollars (or more) may not be enough, it is also true that financial security in retirement depends a lot on your standard of living. For instance, if you take lavish vacations in retirement, then a million dollars may not be enough.

Thus, to determine how much is enough for your retirement, it is very important to consider your current standard of living and your expected standard of living. Having a clear idea of both will definitely help individuals, including millionaires, to determine their financial requirements for retirement.

Additionally, working on a few common mistakes that most people make with retirement planning will also help in reducing retirement worries. These mistakes include: underestimating the impact of inflation; overestimating the investment income; underestimating how long you could live; not factoring in healthcare costs; expecting unrealistic returns; and not understanding income sources.

Thus, it becomes very important to know and understand your current standing, as well as your expectations. Several calculators are available online that could give you an accurate picture of where you stand. It is, however, recommended that you talk to a financial advisor to get an overall and clearer picture of your retirement planning.