World's Wealthy Believe They'll Live to 100


World's Wealthy Believe They'll Live to 100

Richard Branson

Richard Branson

But the increasing longevity is producing financial concerns, as 47 per cent are anxious about how they will pay for healthcare and 41 per cent are concerned they will have to lower their living standards to preserve their wealth.

"If I was going to live to 100 I'd change my asset allocation, take more risks and buy more venture capital trusts", said one 75-year-old man surveyed in the UK.

UBS found that the outlook for longevity varies by country and wealth. Now, it's destined to become commonplace, ' Nick Tucker, Head of UK Domestic at UBS Wealth Management, told Reuters.

The majority of US investors simply believe they are being realistic, with the current life expectancy being 80 on average. Over half plan to give more to their grandchildren than their children, believing that it will be more useful at their stage of life. More than half (53%) doubt healthcare will be advanced enough to keep them alive for 100 years. This is considerably higher than the 80-year life expectancy in most developed countries.

The study's findings reveal that over half (52%) of USA investors believe working longer is good for their health, though this is distinctly lower than the global average of 77%.

The expectation of a long life is creating anxiety, however, as 42 per cent worry that their wealth will not support them till age 100.

In fact, three- quarters (75%) of US investors plan on making financial changes and spending habits due to extended life spans, compared to 91% globally. Globally, investors spend almost as much on preventative measures, such as gyms, coaches and supplements-though American investors spend the least on these services.

Among the biggest concerns high-net-worth individuals share universally is rising healthcare costs, although this issue nags US investors most. Equities and real estate are viewed by most Americans as the strongest options, while globally a significant minority of investors sees cash as a good long-term investment as well.

When it came to handling their wealth, 90 percent of respondents globally said they had made changes to their finances based on the fact that they expected to live longer, while the majority of Americans said they had not.

71 percent would rather live a year longer even if it means passing on significantly less wealth.

Singaporean millionaires believe being healthy is the top priority: 83 per cent worry that their health will deteriorate over the next 10 years and 92 per cent say investing in their health is more important than growing their wealth.

What per cent of your wealth would you sacrifice to guarantee an extra 10 years of healthy life? Generally, Americans consider mental health far more important than physical health-56% are willing to live as long as they are mentally astute even if their physical health declines.