Select your location

  • Japan
  • International - other
  • Asia - other

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Who are you ?

Select another location

Who are you ?

中國香港特別行政區

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Who are you ?

RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 754, 1 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

Who are you ?

Select another location

Who are you ?

Select another location

Categories
Demographics & Culture
High net worth boomers: Settling into retirement
Mike Van Wyk
Head of Customer Research and Insights

Your Boomer clients are feeling good about their retirement. But a few worries keep them up at night.


Mike Van Wyk, Capital Group’s vice president of Customer Research & Insights, shared new research on the unique generational needs of high net worth clients. During his presentation, titled "Millennials to Boomers: Better high net worth planning by generation,” Van Wyk revealed data on Boomers and corresponding actions advisors might consider to serve them best.


Snapshot

  • Over nine out of 10 Boomers know they are Boomers
  • Surprisingly, only about a third of Boomers say they are unique as a generation
  • But Boomers do think their generation has uniquely traditional values (59%), respectfulness (53%) and work ethic (72%)

They are…       


Happy with retirement

  • 60% say retirement is better than they expected (30% said it’s the same as expected)
  • Three quarters of Boomers say their financial situation is as good or better than expected

Worried about shocks to their retirement

  • Many fret over shocks in the cost of health and taxes. Higher-than-expected health care costs hit 40% of Boomers.

Boomers: Experienced with change



Boomer persona: Retirement came earlier than expected.


Retired Boomers say retirement is even better than they thought it would be and their financial situation is rosier than they expected. Many Boomers retired earlier than they planned for various reasons. But they’re OK with that.


Boomers, though, do have some sleep loss issues. Many worry about the threat of unexpected costs, especially with health care, long-term care and taxes. Mitigating such risks to a comfortable retirement is a top goal. This generation has lived through several market cycles and understands the power of long-term planning.

Boomer action plan for advisors: Manage the unexpected.


Prep them for surprises. As pointed out above, retirement doesn’t come on time for most Boomers. About a third retire earlier than expected because they are financially ready. For the rest, early retirement came due to health issues, job changes or a family situation.


Help them transition. Earlier-than-expected retirement can be effectively navigated with advice. Boomers are looking for help.


Get up to speed on health care. Evolve your knowledge to include health care issues. Health care costs are higher than expected for 40% of Boomers. Another 40% will be caregivers for family members at some point during retirement.

Gino Perrina
Chief Investment Officer of Laird Norton Wealth Management

Video


Boomers Setting Expectations

Gino Perrina:

So, for us, many of our boomer clients are retired. And mm by and large feel comfortable with where they are. Um, they certainly are concerned about the potential of a downturn, but we explain to them, how, how their portfolios can withstand a downturn. I think the biggest concern for bloomers like it is for any generation is, um, the potential for lower expected returns over the, the next three to five years.

And sometimes you have to have those difficult conversations with clients to set expectations appropriately. Um, that's true of boomers as it is with, with anybody else.

I think boomers, um, probably more so than other generations prefer, uh, frequent in person, uh, communication whether that be via phone or, um, live, in, in our offices or in theirs, um, more so than, than other generations.

 


Gino Perrina, Chief Investment Officer of Laird Norton Wealth Management, discusses his firm’s experiences working with Boomer clients.

More in this series about HNW generations


High net worth Millennials: Savvy with high expectations


High net worth Gen Xers: “Do-it-yourself” generation



HNW generations: By the numbers


An at-a-glance look at data that define your clients’ generations


DOWNLOAD


HNW generations: Action plan


Enhance your effectiveness as an advisor by understanding your clients’ generation


DOWNLOAD

More about high net worth:


3 secrets of high net worth clients revealed


High net worth will soon look very different


Survey: What high net worth clients want



Sources


Capital Group Advisor Generational Attitudes Study, September 2018


Capital Group Investor Generational Attitudes Study, August 2018


Capital Group Wisdom of Experience Survey, December 2017


McKinsey Money in Motion Survey, 2016



Mike Van Wyk is a senior market research manager at Capital Group, home of American Funds. He has 25 years of industry experience and has been with Capital Group for seven years as of December 31, 2022. Prior to joining Capital, Mike was director of global strategy development and advanced research methods at Procter & Gamble. He holds an MBA from the University of Texas at Austin and a bachelor's degree in horticulture from Michigan State University. Mike is based in Los Angeles.


Learn more about
RELATED INSIGHTS

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Use of this website is intended for U.S. residents only.