1) Maintaining Standard of Living in Retirement
With longer life expectancies, financial planning for retirement has never been more important. One of the biggest concerns High-Net-Worth clients have is how to not only maintain their current lifestyle but also pursue their post retirement goals and dreams, when they stop receiving a regular income and start living on their savings.

2) Business Succession
For business owners, planning for their exit from the business and retiring is a big affair. Considerations such as the future successor and ownership – should the business stay within the family or would a sale make more sense – require proper planning and thought leadership. Studies show that the vast majority (70%) [1] of family business transfers fail within a decade, therefore it is important to begin the succession planning process years before the target exit date and to have emergency funds readily available for unexpected or difficult situations.
Source:
[1] Williams, R., & Preisser, V. (2004). Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values. San Francisco: Robert D. Reed.
[1] Leahy, R. (n.d.). 10 High Net Worth Retirement Planning Mistakes...and How to Avoid Them.

3) Financial Environment
Under adverse market conditions, the performance of a portfolio is often directly affected. Factors such as volatility, inflation or deflation can all influence the returns of the portfolio, which is why many clients may hesitate to make long-term financial commitments without flexibility and access to their funds. However, when dealing with a long term retirement on the horizon, a portfolio that keeps pace with inflation and generates an income stream is essential. Most people underestimate the impact of inflation on their retirement plans. Therefore, reviewing the portfolio on a regular basis is essential to fulfilling your retirement plans.

4) Intergenerational Income Transfer
Another concern of High-net worth clients is providing for the next generation. Studies ([1] Leahy, R. (n.d.). 10 High Net Worth Retirement Planning Mistakes... and How to Avoid Them.) indicate that there is a tendency for High-Net-Worth individuals to provide their adult children with financial support as they may not be as financially successful as their parents. Should HNW clients wish to provide such support to their children, it is advisable to be mindful of their financial tolerances, periodically review the set-up, and have open conversations with their children.

How, though, do all of these factors come into play in real life scenarios? The following case studies give a small insight into the advantages of wealth planning:

#1 Aspiration – Business Venture Fund for Children
Mrs A, who has been retired for 8 years, wants to provide financial support to her eldest son so that he can start a mobile app business. She is, however, concerned that this would affect her retirement planning. Her financial advisor reminded her that she had purchased an annuity plan before her retirement, which enabling her to withdraw part of the cash value from the policy, which can be used as the start-up capital for her son, while continuing to enjoy the stable lifetime income stream from the policy, should she choose to exercise the annuity option.

#2 Aspiration – Intergenerational Income Transfer
Mr B wants to utilise a stable financial tool to help him grow his wealth and to facilitate the transfer of income to the next generation. Following the recommendations by his financial advisor, Mr B purchased an annuity policy at the age of 40. Mr B is now 65 years old and wants to set up a philanthropic fund to help children affected by wars. He withdraws a sum from the annuity policy to increase his own contribution to the fund. At the same time, he decides to transfer the annuity policy to his daughter. By doing so, Mr B can rest assured that his daughter is financially supported by the annuity policy and that the policy becomes part of his daughter’s estate to be inherited by his grandchild.

Conclusion
In short, it is never too early to establish a retirement plan, whether you simply want to maintain your own current standard of living or would like to also provide for your children and grandchildren. High-Net-Worth clients should make the time, well in advance of retirement, to discuss their options and financial goals with their financial advisor and set up the plan that is suitable for their needs.