High net worth people in the UK (HNWI) have a positive view of the economy but are less secure when it comes to their money: nearly two-thirds say they feel “concerned” about their wealth. According to Saltus First Wealth Index.
The Saltus Wealth Index looked at the attitudes of more than 1,000 people in the UK with invested assets of over £250,000 on how they feel about the UK’s economy and their wealth and what is most important to them personally.
The survey showed that the majority of respondents (80%) have great confidence in the future of the British economy, while a third (33%) feel “highly confident”. However, this decreases with age, with only 5% of people over 65 years of age saying they feel “extremely safe” in nearly two-fifths (37%) of people aged 18-54.
Those who live in Greater London are twice as likely to feel ‘extremely safe’ in the UK economy over the next six months than those who live in the West Midlands (41% vs. 18%). HNWI Wales have the least confidence in the UK economy, with only 28% “very confident” in their future.
Confidence remains strong in London’s financial attractiveness, with 68% saying London will be the financial capital of Europe over the next decade. This rises to 75% in London and to 76% in the South East. Feeling is strongest between 18-24 and 45-54 years, both at 72%.
Despite maintaining confidence in the nation’s prospects, with nearly two-thirds of the UK’s wealthy concerned about money, young people are more likely to be concerned than older generations. When asked if I agree with the phrase “my money is bothering me,” one in four (28%) of respondents under the age of 24 said they “completely agree” and 39% said “clearly agree.” Conversely, only 8% of respondents over the age of 65 said they “clearly agree” and none “strongly opposed” the proposal.
The survey also found that the higher their net worth, the more anxious respondents felt. Among those with assets over £3m, more than a third (35%) said they ‘strongly agree’ that their money is bothering them, relatively less than a fifth of those with less than £3m. million yen.
Respondents believe COVID-19 poses the greatest threat to their wealth, with nearly a third (31%) reporting the long-term impact of the pandemic having the greatest impact, followed by inflation (28%).
Michael Stimpson, Partner at Saltus, said: “The UK faces an unprecedented set of challenges, including recovering from the pandemic, decarbonizing the economy, and tackling historical inequality with all of its top priorities. The Saltus Wealth Index seeks the opinions of people who will play They play a vital role in financing these transitions, whether through taxes or the wealth they create or both. So it is reassuring to see that they are optimistic about the UK’s recovery prospects and their finances: nine out of 10 say they are confident over the next six months.
However, the survey also showed that most respondents had some long-term concerns, with the majority saying their money was causing them anxiety. A number of factors contribute to this unease, including the prolonged uncertainty after the pandemic, which further underscores the importance of a strong financial plan for financial and personal well-being.