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than half of affluent households have not set up an income stream
for retirement…Yet, two-thirds
identify this as an important goal…Many who say they have a
retirement income stream can’t identify its source…Stocks?
Annuities? Real Estate?
CHICAGO, Aug. 23 /PRNewswire/ --
With the long-term decline in traditional pensions, most affluent
investors recognize the importance of structuring their portfolios
to provide a guaranteed income stream for retirement.
Yet, more than half (52%) have not
A new Spectrem Perspective(TM)
report, "Growing Need for Income Producing Investments: Facing
Retirement Pro-actively," released today examines the disconnect
between the desire to put a retirement income stream in place and
the reality that this is not happening. Of those who say they have
such an income stream, 43% cannot identify the type of investment at
its source. Those who can, respond: stocks (9%), annuities (12%),
real estate (3%), and other (33%).
"The well-established decline of
traditional pension plans correctly suggests to many affluent
individuals a need to structure their portfolios to produce a
guaranteed income stream for retirement. This can come from
investments, such as stocks, bonds and CDs, annuity products or real
estate that produces rental income. However, more than half of this
group has not taken action. This is cause for concern. With 39% of
the affluent not covered by defined benefit pensions, this will
leave many open to the vagaries of the market and an uncertain
financial future in their retirement years," said George H. Walper,
Jr., President of Spectrem Group.
The lack of income-stream
preparation is surprising given that 68% of non-retired affluent
households say establishing a guaranteed future income stream is an
The Spectrem Perspective(TM)
report, "Growing Needs for Income Producing Investments: Facing
Retirement Pro-actively," is based on three sources: a series of 500
telephone interviews of affluent households in early 2005, a mailed
survey of more than 400 affluent households in mid-2004, and monthly
research of 401(k) plan participants from January to May of 2005.
The margin of error for the data in this report is plus or minus 4.4
percentage points. Affluent households are defined as those with
more than $500,000 in investable assets.