CEOs Focusing on Retirement Funding as Top Goal

June 7, 2001 ( - Almost 60% of CEOs don't use outside help in their personal financial planning efforts, which they aim most often at funding their retirement, a recent survey finds.

The Keep Your Money Yours survey, underwritten by Wilmington Trust for Chief Executive magazine found that:

  • only 41% of CEOs rely strongly on professionals to help them meet their financial goals
  • 38% turn to financial advisors some of the time
  • one in five consult these professionals rarely or not at all.

Top Job, Top Goals

The survey also reveals that:

  • some 64% list funding retirement as their top financial goal
  • followed by family protection, cited by 45%
  • building a sizable portfolio was listed by 32%
  • some 17% mentioned funding their children’s education
  • minimizing taxes was cited by 16%
  • just over 10% listed leaving an estate.

Many executives fail to minimize taxes on savings and investments, with only 28% deferring ordinary income.

Fewer than 50% buy government bonds, maximize their adjusted gross income, use tax-deferred investments or offset capital gains with losses and just over half maximize tax deductions and consult professionals for tax advice. However, more than two-thirds make IRA or 401(k) contributions.

Almost There

Retirement is a primary concern for survey respondents since their golden years are fast approaching:

  • one in five respondents is within three years of retirement
  • two-fifths have three to nine years until retirement
  • about one-third have 10 or more years to go.

Almost half expect their retirement needs to remain in line with their current income levels. However, employer-sponsored retirement plans are no longer expected to fund the bulk of their retirement needs, with more than half saying it will cover less than 40% of required income.