Wealthy investors anticipate lasting lifestyle shifts after coronavirus
Wealthy investors have not been immune to the disruption caused by the coronavirus pandemic, and anticipate long-term lifestyle changes as a result.
Three quarters of wealthy investors in the UK see a permanent shift in the wake of the crisis, according to research by wealth manager UBS.
The survey of 200 UK-based investors, with between $250,000 and $1m in investable assets, shows the adverse impact of the coronavirus on young investors. Three-quarters of millennial investors say they have faced a hit, compared with 60 per cent of baby boomers.
Furthermore, 76 per cent of younger investors said the crisis had had an impact on how they think about money, compared to 38 per cent of baby boomers.
Eight in ten millennials are concerned they do not have enough saved in the event of another pandemic, compared to just 10 per cent of baby boomers. Nearly half of young investors are also concerned about losing their job.
Mark Goddard, head of HNW London at UBS said: “While some high net worth individuals have turned market volatility in recent months to their advantage, they haven’t been immune to the stresses being felt across society as a result of the pandemic.”
“Millennial investors are feeling particularly nervous financially, and we expect to see changes in how they manage their money as a result.”
While some investors have capitalised on the coronavirus-induced volatility, 72 per cent of UK investors are fearful of a further market decline. However, a greater percentage – 78 per cent – consider further instability as an opportunity.
Perhaps unsurprisingly, the UBS survey revealed investment priorities differed drastically between generations. Three quarters of younger investors said they were interested in sustainable investing, compared to just a quarter of older investors.
The UK research falls broadly in line with global findings which show 73 per cent of younger investors across the world faced a hit from the coronavirus pandemic. This compares to two-thirds of older investors.