A person’s financial well-being isn’t solely determined by the size of their bank balance; instead, it is often influenced by their feelings about money. Despite their wealth, many of the UK’s wealthiest individuals experience stress and anxiety regarding their finances. A recent survey revealed that over 75% of high-net-worth individuals in the UK feel worried about their financial situation. These concerns have notably influenced their approach to managing their wealth.
Conducted by private bank Arbuthnot Latham earlier this year, the survey included 500 UK adults with investable assets of at least £100,000. The results showed that 72% of participants had searched online for low-risk investment options. Interestingly, there was a noticeable gender difference in financial priorities: high-net-worth women tended to prioritise financial security over spending, more so than their male counterparts.
The survey highlighted that a sense of financial control significantly enhances overall well-being. Jonathan Watts-Lay, a director at Wealth at Work, supports the idea that when people feel in control of their finances, it greatly boosts their overall well-being.
The survey found that 60% of respondents had investable assets (excluding property) between £100,000 and £499,000, while 40% held more than £500,000. While these figures suggest a healthy financial status, concerns about financial well-being persist across all levels of wealth.
Financial anxiety is a common issue, though the causes differ depending on wealth levels. While many Britons worry about everyday living costs, wealthier individuals often feel anxious about funding their retirement or passing wealth to the next generation. Half of the survey participants even considered moving abroad to afford retirement, driven by concerns about tax implications and the rising cost of living. Additionally, many expressed fears of falling victim to financial scams.
The survey also revealed the top financial concerns among the UK’s affluent population. Maintaining their lifestyle in later life was the top concern for 51% of respondents, followed by worries about the value of their investments, providing for future generations, the tax burden, and the risk of fraud.
Eren Osman, Managing Director of Wealth Management at Arbuthnot Latham, noted that financial stress is more pronounced among women, with retirement planning being their most significant financial worry. This concern is particularly pressing as those nearing retirement in 2024 must increasingly rely on their own provisions, with the state retirement age rising and fewer people having access to final salary pensions.
Low levels of financial literacy further exacerbate these concerns. Jonathan Watts-Lay emphasises that improving financial literacy is essential for enhancing overall financial well-being.
Financial security and peace of mind are crucial for the UK’s wealthiest, who, despite their substantial assets, face significant stress and anxiety about their financial futures. Addressing these concerns through improved financial literacy and a focus on security could help alleviate these anxieties and boost overall well-being.
Arbuthnot Banking Group PLC (LON:ARBB), trading as Arbuthnot Latham, provides private and commercial banking products and services in the United Kingdom. Founded in 1833, Arbuthnot Banking is based in London, United Kingdom.
