RALEIGH,
N.C., June 17, 2024 /PRNewswire/ -- First
Citizens Wealth, the wealth management division of First Citizens
Bank (NASDAQ: FCNCA/FCNCB), today published the results of a new
study conducted to uncover insights on the behaviors and attitudes
of affluent Americans toward money management and planning for the
future. Key findings include:
- 66% of affluent Americans believe they manage their money
better than others; only 4% believe they do worse.
- Affluent Americans expect to need $5.5
million to retire and pass down wealth to heirs; only 50%
say they are very prepared to pass down wealth and have a written
plan in place.
- Nine out of 10 affluent Americans credit financial advisors for
growing their wealth; additional benefits of working with a
financial advisor include reducing stress, saving time, enhancing
feelings of preparedness.
The "Beyond Wealth" study surveyed affluent individuals
across the United States with more
than $500,000 in investable
assets.1
"Our inaugural study sheds new light on how affluent Americans
are looking at their money management and their attitudes toward
retirement, estate planning and wealth transfer," said Michael Wilson, executive vice president and
lead executive for First Citizens Wealth. "We are excited to share
these results and use these insights to assist our clients in their
efforts to achieve their wealth planning objectives."
The study found that a solid majority of affluent Americans
(66%) believe they are managing their money better than others.
About half are not stressed about their finances, and three
quarters have a written financial plan that typically has been
updated in the past three years.
Retirement and wealth transfer
When looking at retirement and wealth transfer, however, the
study shows that affluent Americans are less prepared. Most expect
to retire in their 60s, yet nearly 1 in 5 (18%) are unsure of when
they will retire.
The primary concern of affluent Americans preparing for
retirement is maintaining their lifestyle (44%). To retire
comfortably, affluent Americans expect they will need $3 million. To retire and be able to pass down
wealth to heirs, they expect to need $5.5
million.
Nearly all (94%) affluent Americans expect to pass down wealth
to heirs either during or after their lifetime. Yet only 50% say
they are very prepared to do so and have a written plan in place.
Of those who would like to pass along their wealth, about 2 in 5
(44%) say they have thought about doing so but do not have a
written plan in place. Additional gaps exist with only two-thirds
of affluent Americans indicating they have a will and even fewer
having an estate plan (40%).
"Our study finds that affluent Americans feel they are managing
their money well but falling short in readiness to transfer that
wealth to others, despite intending to do so," said Nerre Shuriah,
First Citizens senior director of Wealth Planning. "Estate planning
is best started well in advance of when it is needed. That's why
it's crucial to work with financial professionals to clarify your
estate goals and make plans to navigate a variety of retirement
scenarios. Effectively planning wealth transfers and managing tax
implications are important for successful outcomes when the time
comes."
The value of financial advisors
When reflecting on wealth planning, 89% of affluent Americans
credit their financial advisor for helping them generate more
wealth than they could have on their own. Beyond growing wealth,
affluent Americans say the biggest benefits of working with a
financial advisor are feeling more prepared for the future (66%),
reducing stress (58%), saving time (45%), and allowing for focus on
the important things in life (43%).
Most affluent Americans on average started working with an
advisor in their late thirties. Younger generations are driving
that number lower, with Millennials having started with an advisor
at an average age of 29 compared to Gen X having started at age 36
and Boomers at age 43.
"There is more conversation around wealth planning than
ever, and younger generations are getting more involved through
social media, podcasts and other digital platforms," said Wilson,
who oversees nearly 1,000 associates at First Citizens Wealth. "Our
study shows that wealth planning isn't something you should put off
until you reach a certain age or asset level. The sooner you start,
the sooner you'll see benefits in more ways than just increasing
net worth."
"First Citizens is well-equipped to support the financial
planning needs of individuals with varying preferences, financial
positions and life goals, so clients can choose the level of
advising that best suits them and their aspirations for the
future," he added.
First Citizens Wealth empowers clients with a comprehensive set
of services and solutions to help meet their unique and evolving
needs. The team's holistic approach, goals-based strategy and
personalized service help ensure clients can make smart decisions
at every stage of their financial journey.
About First Citizens Bank
First Citizens Bank helps
personal, business, commercial and wealth clients build financial
strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a
unique legacy of strength, stability and long-term thinking that
has spanned generations. First Citizens offers an array of general
banking services including a network of more than 500 branches and
offices in 30 states; commercial banking expertise delivering
best-in-class lending, leasing and other financial services coast
to coast; innovation banking serving businesses at every stage; and
a nationwide direct bank. Parent company First Citizens BancShares,
Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with
more than $200 billion in assets and
a member of the Fortune 500™. Discover more at
firstcitizens.com.
About the Survey
1 The online survey was
conducted among a sample of 1,000 Americans with greater than
$500,000 in investable assets in
April 2024 by Logica Research.
Disclosures
First Citizens Wealth™ (FCW) is a
marketing brand of First Citizens BancShares, Inc., a bank holding
company. The following affiliates of First Citizens BancShares are
the entities through which FCW products are offered. Brokerage
products and services are offered through First Citizens Investor
Services, Inc. ("FCIS") , a registered broker-dealer, Member
FINRA and SIPC. Advisory services are
offered through FCIS, First Citizens Asset Management, Inc. and SVB
Wealth LLC, all SEC registered investment advisers. Insurance
products and insurance are offered through FCIS, a licensed
insurance agency. Banking, lending, trust products and services,
and certain insurance products and services are offered by
First-Citizens Bank & Trust Company, Member FDIC, and an
Equal Housing Lender and SVB, a division of First-Citizens Bank
& Trust Company.
MEDIA RELATIONS:
Lexa Tutela Losey
212-461-5305
Lexa.tutela@firstcitizens.com
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SOURCE First Citizens Bank