- Taiwanese investors included as part of the largest recurring global study of High Net Worth individuals (HNWIs).
- 47% of HNWIs in Taiwan believe they will live to 100, the second highest market in APAC after Hong Kong.
- 86% believe that working longer ensures well-being but 96% say that health is more important to them than wealth.
- Taiwan investors seek to achieve a healthy work/live balance; 71% do not work at the weekend or while on holiday.
- Nine out of 10 Taiwan wealth investors have or will make financial changes to address an expected increase in life expectancy., with financials viewed as the most promising sector for long-term investing.
- 64% of Taiwan investors plan to give more of their wealth away while they are alive, demonstrating a strong sense of duty to use their wealth to improve the health of wider society among Taiwanese millionaires.
Taipei, 20 April 2018 – An increasingly strong belief among HNWIs in Taiwan that they will live to 100 is driving significant changes in their spending, investing and attitudes to legacy, according to UBS Investor Watch, the largest recurring study of HNWIs* globally. The study polled more than 5,000 millionaires around the world.
Expectations for a longer life
Almost half of Taiwan’s wealthy people believe they will live to 100, compared to 46% in Singapore and 59% in Hong Kong. All are markedly above current national life expectancy forecasts in most developed countries.
The wealthiest investors expect to live the longest and are the most willing to sacrifice wealth for better health. They are willing to spend on medical care and insurance, as well as preventative medicine, gym memberships, personal trainers, supplements and other “lifestyle” expenses. Millennials tend to spend more on these services than other generations.
Dennis Chen, Country Head and Head of Wealth Management, UBS Taiwan, noted: "The idea of living for a century is no longer confined to the realm of science fiction but is widely expected. While the prospect of living to 100 creates financial anxiety, investors have responded quickly to adjust financial holdings and inheritance planning to accommodate the expectations."
86% of Taiwanese investors believe working is good for their health but that excessive work can have the reverse effect. Particularly in Asia, investors are making efforts to scale back. In a culture known for its work ethic, more Asian investors are increasingly not working at the weekend, respecting holiday time, and turning off phones and email. Around 71% of millionaires in Taiwan and Hong Kong and 68% in Singapore have stopped working at weekends.
Strategy and legacy
The prospect of living for 100 years is changing investment behavior in Taiwan too, with 58% of millionaires in the country planning to adjust their long-term financial plan, and 39% adjusting their spending patterns.
In excess of 50% of millionaires have or will make more long-term investment decisions, with equities, bonds and real estate are seen as strong places to invest for the long-term. However, a large minority still believe cash represents a good investment over multiple decades as well.
Living to an advanced age is also affecting the way the wealthy plan their legacies. Notably, the process is starting earlier, with 64% of millionaires planning to give more away while they’re still alive.
Health versus wealth
Despite all the financial challenges of living for 100 years, good health continues to take precedence over wealth, for Taiwan’s HNWIs. And while 79% are in good health today, 71% admit fears about their health deteriorating in the next decade. Indeed, the average wealthy Taiwanese citizen would sacrifice a third of their wealth today if that could guarantee another 10 years of healthy life.
Duty to society
As well as recognizing the importance of their own health in relation to their wealth, 87% of Taiwanese millionaires feel a duty to help less fortunate members of society stay healthy, exactly the same number as in Singapore. Around 78% have invested in a health-related area to generate a positive social impact (more than in any other market).
Alongside the findings in Taiwan, the key conclusions from all 10 markets can be found on the main UBS Investor Watch website
Notes to Editors:
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 10 markets: Germany, Hong Kong, Italy, Mexico, Singapore, Switzerland, Taiwan, the USA, the UAE and the UK. In Taiwan over 400 individuals were sampled. The research was conducted between December 2017 and April 2018.
About UBS Global Wealth Management
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