
Thriving in retirement is a universal goal, but for high-income earners, maintaining a lifestyle of choice—living oceanside, pursuing creative passions, traveling the globe in style, or honing new skills—requires a significantly higher financial threshold.
While Northwestern Mutual’s 2025 study found that the average American now believes they need about $1.26 million to retire comfortably, that figure often falls short for affluent households. A prior study from 2024 reported that high-net-worth individuals (HNWIs) felt $4 million was a more realistic target to sustain upscale living and legacy planning. At this level, advanced income, tax, and investment strategies become essential to providing the financial clarity needed to fulfill that vision. Below is a snapshot of what retirement can look like for HNWIs and the planning tools that support it.
Age, Longevity, and Lifestyle
A successful retirement strategy should align with an individual’s lifestyle aspirations, longevity, expectations, and spending realities. For HNWIs, this can mean supporting a purpose-driven life over a longer-than-average retirement. That additional longevity requires greater capital to maintain quality of life. Understanding shifts in retirement age and typical spending patterns allows for more adaptive planning to preserve wealth across retirement stages.
- Retirement age: Many Americans now expect to retire between 67 and 70, influenced by the full retirement age (FRA) shift and the incentive of higher Social Security benefits. However, many HNWIs, especially business owners and professionals, continue working into their 70s, not out of necessity but for fulfillment and strategic wealth building. With life expectancy stretching into the late 80s or 90s, retirement could span 25 years or more.
- Spending trajectory: Retirement spending typically follows a “bathtub” curve: high in the early years (travel, hobbies, and lifestyle upgrades), stable in mid-retirement, and rising again with increased healthcare and long-term care (LTC) needs. This spending arc requires a sophisticated withdrawal strategy for affluent retirees, prioritizing liquidity, tax efficiency, and readiness to cover premium care without compromising lifestyle or legacy goals.
Location and Housing
HNW retirees frequently maintain multiple residences, such as coastal vacation homes, urban pieds-à-terre, or countryside retreats. Others relocate abroad, balancing cost, climate, and lifestyle with favorable tax or legal jurisdictions. Strategic decisions about where to live or claim residency can impact wealth preservation.
From U.S. state tax rules to foreign residency incentives, geographic flexibility is a lever of financial optimization. Retirees should consider healthcare quality, estate law, exchange rates, and the costs of maintaining multiple properties when selecting where to settle.
Lifestyle and Time Use
Regardless of net worth, retirees should envision how they want to spend their time. But for HNWIs. The focus often shifts from quantity to quality, prioritizing curated experiences such as luxury wellness, first-class travel, and concierge services. A day in the life might involve:
- 2–3 hours attending or hosting social or philanthropic events
- 3–4 hours pursuing cultural or recreational hobbies (art, sailing, wellness, golf)
- 2–3 hours enjoying fine dining or entertaining
Affluent Planning Tools and Strategies
To support a high-end lifestyle and long-term goals, HNW households can integrate the following strategies.
- Withdrawal planning: The traditional 4% withdrawal rule may no longer be sustainable. Many advisors recommend a more conservative 3.5–3.7% annual draw to preserve principal and extend portfolio longevity.
- Inflation resilience: To hedge against inflation, HNW portfolios often include Treasury Inflation-Protected Securities (TIPS), income-producing real estate, dividend-paying equities, and alternative investments.
- Longevity coverage: To fund extended lifespans, HNWIs may incorporate private LTC insurance to manage rising medical costs without disrupting portfolio strategy.
- Guaranteed income: Layering pensions and structured insurance products can provide stable, market-insulated income to meet ongoing lifestyle expenses.
- Philanthropy and liquidity: Many HNWIs engage in strategic giving through donor-advised funds, private foundations, or charitable trusts. Effective planning ensures philanthropic goals are met without jeopardizing personal liquidity.
- Estate and tax planning: Sophisticated strategies, like backdoor Roth IRA conversions, irrevocable trusts, spousal lifetime access trusts (SLATs), and lifetime gifting, can reduce future estate tax burdens and enhance intergenerational wealth transfers.
A Refined Roadmap for a High-End Retirement
- Set an annual “magic number” based on lifestyle needs, legacy goals, and projected longevity.
- Build diversified, inflation-resistant portfolios using a blend of equities, bonds, real estate, TIPS, private credit, and alternative investments.
- Secure guaranteed income and LTC coverage to protect against longevity and healthcare risk.
- Plan tax-efficient withdrawal sequencing using backdoor Roth IRA conversions, charitable trusts, and coordinated Social Security timing.
- Strategically select legal residency or maintain multiple properties in jurisdictions with tax and legal advantages.
- Reserve capital for lifestyle flexibility to fund philanthropic pursuits, travel, or entrepreneurial ventures in retirement.
- Adopt a rolling review process to adjust plans annually in response to market shifts, health, and life transitions.
Targeted and tailored planning and disciplined wealth management allow affluent individuals to fashion their ideal retirement lifestyle. SHP Financial specializes in custom retirement strategies for HNW clients. We’ll help you define your vision, optimize wealth strategies, and preserve your lifestyle and legacy. Book your complimentary portfolio review today.
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