Ever rising health care costs in the US is not just a concern for those with little money, but the country’s wealthy do not like rising burd...

Ever rising health care costs in the US is not just a concern for those with little money, but the country’s wealthy do not like rising burden either, according to a survey by Northern Trust, the US investment and wealth manager. Northern Trust's new survey of 1,312 millionaire investors, representing more than $7 billion of total investable assets, showed that 92 per cent of non-retirees are very worried or somewhat worried that rapidly rising health care costs will affect their ability to enjoy retirement. Most (88 per cent) retired millionaires, 55 and older, are similarly worried, as are nearly all (96 per cent) baby boomer millionaires (age 54 and under). “It was surprising to learn that regardless of age or level of wealth no one is immune from the devastating affects of spiraling health care costs,” said Thomas Hines, head of the Northern Trust Financial Planning Group. "Affluent individuals and families are feeling the pinch along with everyone else, as rising costs are expected to take a huge bite out of retirement savings.” Close to half (42 per cent) of surveyed millionaires who have yet to retire said they plan to work part or full-time during their retirement years. Of those, 38 per cent of baby boomers plan to work. Nine per cent of retired millionaires reported they are currently working, while 10 per cent of millionaires with more than $10 million of assets to invest said they will never retire, indicating that for a number of affluent individuals work becomes their identity and lives. “The intention to work during retirement is a phenomenon we haven't seen with previous generations,” said Mr Hines. "The baby boom generation is unique in that they are interested in staying active and engaged well into their senior years. The idea of working in retirement could be a reflection of that interest. For those with higher incomes the reason to continue working may be more a function of personal identity than need.” More than half (54 per cent) of younger millionaire investors plan to draw income from a combination of five or more sources of income to fund retirement, including stocks and bonds, IRA accounts (individual retirement accounts), 401(k) plans (US retirement schemes) and Social Security. Of those, 84 per cent plan to use their stock and bond portfolio, while 73 per cent plan to use IRAs. Savings in 401(k) plans will be used by 73 per cent of baby boomers, a reflection of the plans' popularity among younger executives, business owners and professionals covered by these plans. Reflecting the rise of interest in alternative investments among affluent investors, nearly half (43 per cent) of young millionaires, 54 and under, are planning to use real estate investments as a source to fund their retirement, more than double the number of retirees (18 per cent) who are currently drawing on this asset.