A survey of affluent U.S. investors finds that 20% have dipped into their savings to meet immediate financial needs in the past year, and that a majority expect to delay retirement.

The findings come from the latest Merrill Lynch survey of affluent Americans. It reports that in last year alone, one in five affluent Americans have tapped into their long-term savings and investments to meet immediate financial needs. Their top three reasons for dipping into their nest egg were to cover regular monthly expenses (35%), pay down excess debt (27%), and compensate for a loss in income within their family (19%).

While 41% of respondents say they are feeling financially better off today than they did one year ago (37% feel roughly the same), more than half, 61%, now expect to retire later than they had originally planned, up from 29% in January 2010.

“The last couple of years have been a rollercoaster for many investors as they navigated through the recession and markets. While they believe the future may be getting brighter, many still struggle with the financial tug of war between near-term demands and future goals,” said Sallie Krawcheck, president of Bank of America Global Wealth and Investment Management.

The latest survey also found affluent Americans divided over their outlook for the U.S. economy, with a quarter optimistic that the economy will improve during 2011, another 25% not optimistic, and the rest landing in the middle.

The survey also found wealthy investors are continuing to take a more conservative approach to managing their investments and their spending. It reports that 39% say they have a low investment risk tolerance, and are gravitating toward more conservative investment vehicles and strategies.

And, it says, the number one lesson the affluent have learned from the recent recession is to spend within their means (38%). This outpaces creating an emergency fund (19%) or diversifying investments more (10%). Additionally, 37% indicate they are spending less today than they were one year ago, with 27% cutting back on luxury items/recreational activities, and 23% spending less and/or more closely managing day-to-day expenses.

Merrill speculates that this focus on reining in spending may be attributed, in part, to ongoing concerns about costs associated with the future. The survey found that the rising cost of health care (60%), ensuring retirement assets will last throughout their retirement (57%), and being able to afford the lifestyle they want in retirement (51%) have remained their top financial concerns throughout the year.

The survey notes that, amid this uncertainty, affluent investors are speaking with their financial advisor more frequently today than at any point during the last year, with 51% indicating they speak with their advisor at least monthly, compared with 39% in October 2009. The survey also found that help from an advisor on cash flow and liquidity is as important to the affluent today as providing proactive investment advice and regular check-ins.

“While investors still rely on their advisor for the things they are traditionally known for — such as proactive advice, diversification and investment performance — today many expect them to also serve as a life coach, taking into account every aspect of their personal ambitions and priorities to help them manage both sides of their balance sheet,” said Lyle LaMothe, head of U.S. Wealth Management for Merrill Lynch Wealth Management.

The latest survey was conducted by Braun Research between September 13 and October 7, based on a nationally representative sample of 1,000 affluent Americans with investable assets in excess of $250,000, and oversampled 300 affluent Americans in each of 14 target markets. The margin of error is +/- 3.1% for the national sample and +/- 5.7% for the oversample markets, at a 95% confidence level.

IE