More than half of affluent households have not set up an income stream for retirement…Yet, two-thirds identify this as an important goal…Many who say they have a retirement income stream can’t identify its source…Stocks? Annuities? Real Estate?

CHICAGO, Aug. 23 /PRNewswire/ -- With the long-term decline in traditional pensions, most affluent investors recognize the importance of structuring their portfolios to provide a guaranteed income stream for retirement.

Yet, more than half (52%) have not done so.

A new Spectrem Perspective(TM) report, "Growing Need for Income Producing Investments: Facing Retirement Pro-actively," released today examines the disconnect between the desire to put a retirement income stream in place and the reality that this is not happening. Of those who say they have such an income stream, 43% cannot identify the type of investment at its source. Those who can, respond: stocks (9%), annuities (12%), real estate (3%), and other (33%).

"The well-established decline of traditional pension plans correctly suggests to many affluent individuals a need to structure their portfolios to produce a guaranteed income stream for retirement. This can come from investments, such as stocks, bonds and CDs, annuity products or real estate that produces rental income. However, more than half of this group has not taken action. This is cause for concern. With 39% of the affluent not covered by defined benefit pensions, this will leave many open to the vagaries of the market and an uncertain financial future in their retirement years," said George H. Walper, Jr., President of Spectrem Group.

The lack of income-stream preparation is surprising given that 68% of non-retired affluent households say establishing a guaranteed future income stream is an important goal.

The Spectrem Perspective(TM) report, "Growing Needs for Income Producing Investments: Facing Retirement Pro-actively," is based on three sources: a series of 500 telephone interviews of affluent households in early 2005, a mailed survey of more than 400 affluent households in mid-2004, and monthly research of 401(k) plan participants from January to May of 2005. The margin of error for the data in this report is plus or minus 4.4 percentage points. Affluent households are defined as those with more than $500,000 in investable assets.

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