- Study finds that 59% of High Net Worth Individuals (HNWIs) in Hong Kong now believe they will live to 100.
- 93% say that health is more important than wealth, at the same time, the same number believe retiring later is good for health.
- HK HNWIs are concerned over the cost of such a long life, particularly healthcare costs, which is impacting their long-term investment choices and legacy plans for coming generations.
- Despite concerns over their own health, Hong Kong millionaires feel a strong sense of duty to use their wealth to improve the health of wider society.
Hong Kong, 19 April 2018 – An increasingly strong belief that they will live to 100 is driving significant changes in investing and legacy behaviors by Hong Kong’s wealthy. This is the key finding from UBS Investor Watch, the largest recurring global study of High Net Worth Individuals (HNWIs)* in the world, which covers the views of over 5,000 people around the world.
Believe they will live to 100
Over half of Hong Kong’s wealthy people now believe they will live to 100, higher than in Singapore (46%) and Taiwan (47%). This is markedly above current national life expectancy forecasts in most developed countries.
In fact, the very wealthiest investors expect to live the longest—and they are the most willing to sacrifice wealth for better health.
Working longer but more sensibly is good for health
The study's findings reveal that over nine in 10 Hong Kong investors believe working is good for their health. Too much work, however, 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 taking weekends off, respecting holiday time, and turning off phones and email with greater frequency.
Adeline Chien, Regional Market Manager, Hong Kong, UBS Global Wealth Management said: As Hong Kong HNWIs expect to live longer lives, they need to adopt the right investment strategies to support these extra years. Maintaining a diversified portfolio and staying invested can help investors hedge against market risks, uncertainty and volatility. In addition, having a holistic wealth plan that encompasses retirement and succession considerations is crucial in ensuring that the wealthy will not have to sacrifice their current lifestyle after retirement, and can leave a legacy to the next generation.
Investment behavior and legacy
The 100-year life is changing investment behaviors in Hong Kong, with 41% planning to adjust their long-term financial plan, and 37% adjusting their spending patterns.
In addition, 53% have or will make more long-term investment decisions, with equities, bonds and real estate seen as strong places to invest long-term. However, a large minority still believe cash represents a good investment over multiple decades as well. In terms of long term investment themes, Hong Kong HNWIs see the most opportunities in healthcare.
Longevity is also impacting the way wealthy investors plan their legacy. This process will also start earlier, with seven in 10 planning to give more away while they’re still alive.
Health trumps wealth
Despite all the financial challenges of living a 100-year life, good health still takes precedent over abundant wealth, according to Hong Kong HNWIs. And while 83% are in good health today, 86% admit fears about their health deteriorating in the next decade. Indeed, the average wealthy Hong Kong resident would sacrifice around a third of their wealth today if that could guarantee another ten years of healthy life.
Duty to society
As well as recognizing the importance of their own health, 84% of Hong Kong millionaires say they feel a sense of duty to help less fortunate members of society stay healthy. They are acting on this, with 71% having invested in an area of health in order to generate a positive social
Alongside the findings in Hong Kong, the key conclusions from all 10 markets can be found on the main UBS Investor Watch website: www.ubs.com/investorwatch
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 ten markets: Germany, Hong
Kong, Italy, Mexico, Singapore, Switzerland, Taiwan, the USA, the UAE and the UK. In Hong Kong, over 400 individuals were sampled. The research was conducted between December 2017 and April 2018.
About UBS Global Wealth Management
As the world's largest wealth manager, UBS Global Wealth Management provides comprehensive advice, solutions and services to wealthy families and individuals around the world. Clients who work with UBS benefit from a fully integrated set of wealth management capabilities and expertise, including wealth planning, investment management, capital markets, banking, lending and institutional and corporate financial advice.