News Releases

CHICAGO, ILLINOIS--(Marketwired - March 31, 2015) - BMO Private Bank today released the results of a study which examines what retirement looks like or will look like for high-net worth Illinois residents (defined as those with investible assets of $1 million or more). The study is part of a series examining trends among America's affluent.

According to the study, Illinois' wealthy:

• Will retire, on average, at the age of 59
• Believe they will need an average of $1.9 million to live out their ideal retirement lifestyle (lower than the national average of $2.3 million)*
• Plan to stay in the U.S. during their retirement years (93 percent)
• Want to spend their retirement years travelling (76 percent), spending time with family (74 percent), and focusing on their hobbies and volunteering (50 percent each)

"Planning for retirement is important, regardless of your income level," said Zach Lazar, President, Illinois and Florida, BMO Private Bank. "When putting the pieces in place for what your retirement will look like, be sure to involve your loved ones in the discussion. As well, speak with a financial professional who can help you create a roadmap that will help pave the way to a stress-free retirement."

Investing Profile of High-Net Worth Illinois Residents

The study also examined how the affluent in Illinois manage their investments, revealing the vast majority (93 percent) of respondents say they have an investment portfolio or share one with their spouse/partner.

Illinois' affluent intend to use the money in their investment portfolios to:

• Fund their retirement (80 percent)
• Provide an inheritance for their family (44 percent)
• Use as income (38 percent)

Further, more than half of high-net worth individuals in Illinois (54 percent) consider themselves to be balanced investors, 34 per cent are conservative and 12 percent are aggressive investors.

"A balanced approach to investing is the safest way to ensure a valuable portfolio come retirement. Having lived and worked through the recession, we're seeing tomorrow's retirees step back and reevaluate the need for risk," noted Jack Ablin, Chief Investment Officer, BMO Private Bank. "Affluent Americans want to retire younger and do more, so they aren't willing to compromise their retirement income on risky investments."

Key National Findings

On a national level, the study found:

• High-net worth Americans plan to retire at an average age of 56 and feel they need $2.3 million to live out their ideal retirement lifestyle.*
• Almost all (96 percent) will retire in the U.S. and would like to spend their golden years travelling (81 percent), with family (70 percent), on hobbies (47 percent) and volunteering (42 percent).
• The average amount of money high-net worth Americans hold in their portfolio is $3.2 million.
• In terms of how they intend to use the money in their investment portfolios, 85 percent plan to use the money to fund their retirement, 45 percent as an inheritance for their family and 24 percent as income.
• Over half of wealthy Americans with an investment portfolio consider themselves to be balanced investors, 42 percent are conservative and 5 percent are aggressive investors.

Survey results cited here are from online interviews with a sample of 493 Americans 18 years of age and older who have at least $1 million in investible assets. Surveys were conducted between October 15 and October 28, 2014.

*This survey result is from an online survey that was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 482 American adults who have $1M+ in investable assets. The margin of error for a probability sample of this size is ± 4.5%, 19 times out of 20.

About BMO Private Bank, a part of BMO Financial Group

BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high-net-worth clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.

BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.

For more information on BMO Private Bank, please visit www.bmoprivatebank.com.