UBS Group AG (NYSE:UBS)
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6 Months : From Feb 2018 to Aug 2018
U.S. investors included as part of the largest recurring global study
of High Net Worth Individuals in the world
Study finds that almost half (49%) of High Net Worth Individuals in
the U.S. want to live to at least 100 but less than a third (30%)
believe they will
Over three quarters (77%) of wealthy U.S. investors say health is more
important than growing wealth
Most (76%) are happy with their health today but over half (57%) worry
their health will deteriorate in the next decade
U.S. investors are the most concerned about rising healthcare costs,
with 69% agreeing that it is their biggest financial concern related
to longevity, compared to 52% globally
Across the globe, 53% of wealthy investors believe they will live to
100, though U.S. investors are the least optimistic. Half of U.S.
investors (49%) want to live to at least 100, but only 30% expect to. In
Asian markets, about half of wealthy investors think they will reach
100, while in continental Europe the percentage is markedly higher.
These are the key findings from UBS Investor Watch, the largest
recurring global study of High Net Worth Individuals (HNWIs)* in the
world, which covers the views of just over 5,000 investors globally in
the most recent report entitled "The century club."
“As much as investors look forward to living 100 years, the prospect is
creating anxiety for them, too,” said Paula
Polito, Global Client Strategy Officer and Group Managing Director,
UBS Global Wealth Management. “Despite being wealthy, they still worry
about difficult choices they may face, such as spending a portion of
their children’s inheritance to pay for healthcare, or working longer to
sustain their lifestyle over time. Already, we are starting to see
longevity change long-practiced financial behaviors.”
Americans see age 100 as unrealistic
There are several reasons why U.S. investors have lower expectations for
reaching 100. The overwhelming majority (93%) simply believe they are
being realistic. Many (77%) believe the average life expectancy is 80,
while others cite family history (66%). More than half (53%) doubt
healthcare will be advanced enough to keep them alive for 100 years.
Believe money will help them live longer
A full 91% of U.S. investors believe their wealth enables them to live a
healthier life, in line with 92% of investors globally. In fact, the
very wealthiest investors expect to live the longest—and they are the
most willing to sacrifice wealth for better health. On average, wealthy
U.S. investors would sacrifice a quarter (27%) of their wealth to
guarantee an extra 10 years of healthy life, compared to 35% for
Wealthy investors spend primarily on doctors’ visits, insurance premiums
and other “direct” healthcare expenses. Globally, investors spend nearly
as much on preventative measures, such as gyms, coaches and
supplements—though American investors spend the least on these services.
Millennials tend to spend more on preventative services than other
Work is a major factor for good health
The study's findings reveal that over half (52%) of U.S. investors
believe working longer is good for their health, though this is
distinctly lower than the global average of 77%. While many other
countries are actively taking steps to balance their work and personal
lives, the U.S. lags behind other nations in this area. Only 39% of U.S.
investors say they have stopped working on weekends compared to 62%
globally. Only 29% are “unplugging” from work phones or e-mail past
working hours, compared to 50% of investors globally.
Strategy and legacy
Despite their wealth, investors around the world worry about affording a
long life. Investors in the U.S. are the most anxious, with 69% citing
the cost of healthcare as their greatest financial concern related to
longevity, compared to 52% of global investors.
Three quarters (75%) of U.S. investors plan on making financial changes
due to increased life expectancy, compared to 91% globally. In addition
to adjusting spending habits and financial plans, investors are
allocating wealth to long-term investments. 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. Living to an advanced age is even impacting the way
wealthy investors plan their legacy, with 46% of U.S. investors planning
to give more wealth away while they’re still alive, compared to 62%
Health trumps wealth
Despite all the financial challenges of living longer, good health still
takes precedence over abundant wealth for both global and U.S.
investors. Over three quarters of Americans (77%) say that health is
more important than growing their wealth. Moreover, 71% would rather
live one year longer and leave a smaller inheritance than live one year
less and leave a larger inheritance.
Though 76% of U.S. investors are happy with their wealth today, over
half (57%) worry their health will deteriorate in the next 10 years.
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. This is markedly higher
than the 29% of investors who would choose to live longer if physically
but not mentally capable.
The key conclusions from all 10 markets can be found on the main UBS
Investor Watch website: ubs.com/investorwatch
About the research
* The cited research was conducted among more than 5,000 millionaires
with at least USD 1 million investable assets (excluding property). The
global sample was split across ten markets: Germany, Hong Kong, Italy,
Mexico, Singapore, Switzerland, Taiwan, the U.S., the UAE and the U.K.
The research was conducted between December 2017 and April 2018.
About UBS Wealth Management
UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. The operational structure of the Group is comprised of our
Corporate Center and five business divisions: Wealth Management, Wealth
Management Americas, Personal & Corporate Banking, Asset Management and
the Investment Bank. UBS’s strategy builds on the strengths of all of
its businesses and focuses its efforts on areas in which it excels,
while seeking to capitalize on the compelling growth prospects in the
businesses and regions in which it operates, in order to generate
attractive and sustainable returns for its shareholders. All of its
businesses are capital-efficient and benefit from a strong competitive
position in their targeted markets.
UBS is present in all major financial centers worldwide. It has offices
in 54 countries, with about 34% of its employees working in the
Americas, 35% in Switzerland, 18% in the rest of Europe, the Middle East
and Africa and 13% in Asia Pacific. UBS Group AG employs approximately
60,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).
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Media:UBS Wealth Management USAMaya Dillon,