High-fliers get the retirement jitters

A new survey by Citibank indicates that high-income earners are not confident about their ability to fund a comfortable retirement but aren't doing anything to address this fear. They're aware of the concept of wealth creation but are most likely to take their advice from financial media, friends and colleagues.

About 500 30+ year-olds from Victoria and NSW, with full-time job incomes over $50,000 a year and assets worth more than $100,000, were surveyed over a two-month period. Key findings revealed widespread concern about investing:

  • 70% believe they don't have enough to retire on;
  • 84% have no formal plan for future investment;
  • 70% say they need to know more about investing;
  • 60% think that their investments could be better managed and less than half feel they're getting the best from their investments;
  • less than 50% feel confident about making investment decisions;
  • 50% have an “opportunistic” approach to investing and rely on financial media and social circles;
  • decisions are largely driven by fear of losing what has already taken years to achieve, with wealth creation coming a long way behind;
  • 72% think that “wealth management” just means superannuation or retirement planning.

Citibank released the survey as it unveiled its new consumer banking service, CitiGold Wealth Management Banking, which will target the same types of investors who took part in the research. The service will offer a range of investment products, such as cash management and savings accounts, managed funds, and local and foreign currency deposits. Access to Salomon Smith Barney research is also available.