More than half of affluent people have not established a guaranteed income stream for retirement, according to Spectrem Group, a Chicago research firm.
About 52% of people with more than $500,000 of assets have not established such an income stream, Spectrem said in a study released Tuesday.
Of those who say they have such an income stream, 43% could not identify the type of investment producing the income. The lack of preparation was surprising, the study said, given that 68% of nonretired affluent households characterized establishing a guaranteed future income stream as an important goal.
The Spectrem report, "Growing Needs for Income Producing Investments: Facing Retirement Pro-actively," is based on 500 telephone interviews with affluent households early this year, a mailed survey of more than 400 such households in mid-2004, and monthly research among 401(k) plan participants from January to May this year. The margin of error for data in the report was plus or minus 4.4 percentage points.
