Monday, October 18, 2010

Never retiree: Why the wealthy will never retire

Never retiree: Why the wealthy will never retire

High economic growth has thrown up wealth of opportunities for them, finds a Barclays study



Longer life expectancy and growing financial pressure may compel even wealthy individuals around the world to redefine the concept of 'retirement' and work beyond their normal workspan years — even if they can afford a luxurious lifestyle.
That's the finding from a Barclays Wealth survey of wealthy individuals in 20 countries around the world, including India. "Instead of planning a conventional retirement or making plans to retire early, most of our respondents aspire to keep on working in some form — to become a 'Nevertiree' rather than a retiree," says Joanna Chu, managing director and North Asia head at Barclays Wealth.
In addition to wanting to continue working, the wealthy are using the later years to re-examine their options with regard to work by looking for different careers and positions, and often moving from the role of execution and control to that of influence, the report said.
"While previous generations looked to generate wealth early in life with plans to enjoy it at retirement, we find a completely new attitude among the wealthy today," notes Chu. "They are a more active generation who want to challenge themselves well beyond the traditional retirement age. Indeed, many 'Nevertirees' prefer to be engaged and challenged, and dismiss traditional views on age constraints in order to continue a fulfilling work life."
The survey revealed that wealthy individuals in emerging markets expressed the biggest desire to continue working in later life, but the 'Nevertiree' concept is also popular in the UK and US, with respondents showing a desire to continue work.
"This attitude among wealthy individuals in emerging markets is not surprising, considering the wealth of opportunities these economies have thrown up as a result of strong economic growth, particularly in Asia," notes Asia strategist Manpreet Gill. "We believe that this high pace of economic activity will sustain over a long period of time, so we would not be surprised to see this trend of 'nevertirees' continue."
High networth Indians are among the most confident that they have enough money for retirement, the survey showed. About 79.2% of the respondents from India said they had built up a big enough nest-egg, against a global average of 75.4%.
About 58.4% of the respondents in India said they would want to continue working beyond retirement age, marginally less than the global average of 59.8%. About 62.4% in India said they plan to work part-time, against a global average of 68.1%.
About 12.9% of Indian wealthy respondents said they expected their children or other family members to support them financially in their older age, against 11.3% globally.
Optimism that the next generation will be wealthier runs highest in India. As many as 73% of the Indian respondents said they anticipated their children will be wealthier than themselves, against the global average of just 45%.

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