‘High Net Workers’ Redefine Wealth Accumulation and Retirement Goals

New EverBank research examines spending, investing and real estate trends among mass affluent

JACKSONVILLE, Fla.--()--A subset of Americans is redefining the way families within their income bracket live, work and plan for the future, according to a survey released today by EverBank. The High Net Worker (HNW), named for the group’s earning power, dogged work ethic and aversion to traditional ideas about retirement, has emerged as a key player in the spending and savings landscape in the U.S.

The analysis defined High Net Workers as Americans between 41 and 63 years old with an average household income of $374,000 and median investable assets between $750,000 and $1 million. Their high-paying jobs require more time at the office, with most logging at least 50 hours of work per week. Despite the long hours, HNWs show no interest in cutting back, even as they near retirement age.

“When we discovered the High Net Worker subset in our research, we were attracted to the commitment these individuals have to their careers. High Net Workers are reshaping traditional perceptions of wealth and retirement,” said Frank Trotter, Chairman, EverBank Global Markets. “However, as they push forward in their demanding careers and play catch-up with their busy lifestyles, they may be missing out on key opportunities to expand and grow their success. HNWs are at a critical time in their lives when their finances are more complex and their goals are loftier. With such a focus on career and little time for anything else, we see a red flag regarding holistic financial planning,” Trotter added.

Additional Investing Data:

  • Approximately one in eight say they will never retire
  • Sixty-nine percent of respondents described themselves as conservative investors
  • Nearly a third has never used a financial advisor, yet 91 percent believe an advisor would add value to their investment program

Real Estate in the Minds of the HNW

Historically, adults nearing retirement have downsized their homes. HNWs, however, are doing the opposite. Thirty-three percent plans to make a real estate purchase over the next two years, with many of these expected to be second or third homes and 50 percent have or would consider a home equity line of credit.

“High Net Workers have money to spend, are investing in real estate and tapping into the equity of their existing homes to expand their residential footprint,” said Tom Wind, Home Lending Executive Vice President, EverBank. “While adults in their fifties tend to begin looking to downsize, HNWs are taking the opposite approach. Within our own business, we are seeing HNWs use home equity lines of credit to take advantage of low interest rates and a rising real estate market. Even more interesting than that though, is the trend of these High Net Workers helping their adult children with down payments. It’s helping bolster certain parts of the market.”

Additional real estate data:

  • 74 percent of HNWs say they plan to hold on to their primary residence for at least the next 10 years
  • 40 percent own homes valued at over $750,000
  • 58 percent of HNWs will or have already helped a child with a down payment
  • 48 percent said they are living in their dream home

The EverBank report, “Retrenched & Ready to Spend: Engaging The High Net Worker,” can be downloaded at https://www.everbank.com/~/media/_docs/marketing/_shared/engaging-the-high-net-worker.pdf.

METHODOLOGY

Data for the EverBank High Net Worker Study was gathered through an online survey conducted by ORC International, in combination with psychographic insights from Simmons National Consumer Survey, furnished by Boyce::Mangin. The ORC International online study was conducted among a sample of 500 adults ages 25 and older who have a household income of $200,000 or more, are financial decision makers for their household, and are investors. The survey was fielded from September 25, 2014 – October 1, 2014. Simmons National Consumer Study data referenced herein is from a June 2014 fielding of the Simmons survey, which included 233,235 Americans. High Net Workers were identified in the data as those with $250,000 or more in household income and some investable assets. The average American household depicted by the Simmons dataset reported an average household income of $89,000.

About EverBank Financial Corp

EverBank Financial Corp, through its wholly-owned subsidiary EverBank, provides a diverse range of financial products and services directly to clients nationwide through multiple business channels. Headquartered in Jacksonville, Florida, EverBank has $23.3 billion in assets and $16.1 billion in deposits as of March 31, 2015. With an emphasis on value, innovation and service, EverBank offers a broad selection of banking, lending and investing products to consumers and businesses nationwide. EverBank provides services to clients through the internet, over the phone, through the mail, at its Florida-based financial centers and at other business offices throughout the country. More information on EverBank can be found at www.abouteverbank.com.

Contacts

Media Contacts for EverBank
Tori Pappas, 904-623-8621
Victoria.Pappas@EverBank.com
or
Jill Gordon, 212-279-3115 Ext. 226
jgordon@prosek.com

Contacts

Media Contacts for EverBank
Tori Pappas, 904-623-8621
Victoria.Pappas@EverBank.com
or
Jill Gordon, 212-279-3115 Ext. 226
jgordon@prosek.com