Retirees will need an average of $2.5 million to maintain the same quality of life in retirement, according to a recent Legg Mason survey.
The majority (72%) of the 458 U.S. respondents to the Legg Mason Global Investment Survey — all affluent investors (defined as having at least $200,000 in investable assets not including their home) — said their primary goal of investing was to "maintain my current lifestyle later in life." Asked if they were making progress toward this goal, 38% said they were either not doing well or were only doing "somewhat well" at best. Only 40% said they were "very confident" in their ability to retire when they want to, while 60% were either not confident or "somewhat confident" at best.
Seventy percent of respondents said they have a defined contribution plan; on average, their account balance stands at $385,000. Their average age: 58.
The investors surveyed said they spend, on average, an hour and 20 minutes each day thinking or worrying about money. That amounts to more than nine hours a week, or 485 hours a year. Furthermore, 10% of all investors spend two to three hours a day thinking or worrying about money — or between 730 and 1,095 hours a year.
