A recent study conducted by Arbuthnot Latham, a private and commercial bank, has revealed key insights into the primary financial concerns of the wealthiest individuals in the UK. According to the research, 81% of the country’s most affluent individuals experience significant stress regarding their financial matters.
Of particular concern to these individuals are future planning and retirement. Worries include maintaining their standard of living in later years, providing for future generations, and safeguarding the long-term value of their investments. Significantly, the study shows a 72% month-on-month increase in demand for low-risk investments, indicating a growing unease among the wealthy.
Surprisingly, nearly a quarter of the UK’s wealthiest cited the tax burden as their main financial concern, leading 59% to contemplate relocating to address these issues.
Additionally, the research demonstrates that high net worth individuals are primarily motivated to relocate abroad in order to benefit from reduced taxes and a higher standard of living during retirement. Particularly, women expressed greater concern about their quality of life post-retirement, citing it as their primary financial stressor.
The study also illustrates a discrepancy in the financial priorities of men and women. While both genders prioritize making lifestyle changes to save money for retirement, women are more willing to make cutbacks, including reducing spending on luxury items, evenings out, and holidays in comparison to men.
Eren Osman, Managing Director of Wealth Management, advises individuals to begin saving for retirement as early as possible to achieve long-term financial stability. Emphasizing the importance of compounding, Osman notes that early saving can significantly increase one’s retirement funds over time.
Arbuthnot Latham also offers additional guidance, including considering the desired retirement lifestyle, maximizing tax advantages, and regularly reviewing financial plans.
The research, conducted in partnership with Atomik Research, an independent market research agency, surveyed over 500 UK residents with investible assets of at least £100,000. Respondents were primarily from the age group above 40 years old and had a substantial portion of their assets in investments. Arbuthnot Latham & Co., Limited, based in London, specializes in wealth management and commercial lending with regional offices in Manchester, Bristol, and Exeter.
Although the financial concerns of the UK’s wealthiest individuals may seem daunting, there are measures and considerations that can be taken to address and alleviate these worries. With intentional planning and prudent financial management, both men and women can look forward to a secure and comfortable retirement.