The very wealthiest investors expect to live the longest, and they are the most willing to sacrifice wealth for better health.
An increasingly strong belief that they will live to 100 is driving significant changes in spending, investing and legacy behaviour in the United Arab Emirates (UAE).
This is the key finding from UBS Investor Watch, conducted among nearly 5,500 millionaires with at least $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 the UAE, over 400 individuals were sampled. The research was conducted between December 2017 and April 2018.
Almost half of the UAE’s wealthy people now believe they will live to 100. 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.
Not only do they spend on doctors’ visits and insurance premiums, but preventive services are also popular. Investors spend significantly on gyms, coaches, supplements and other “lifestyle” expenses. Millennials tend to spend more on these services than other generations.
The study’s findings reveal that work is a major force as well. Eight in 10 UAE investors believe working is good for their health, but too much can have the reverse effect. Asian investors in particular 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.
“There’s no doubt that living extended lives is changing financial and investment behavior. Even among the wealthiest people, the prospect of living as long as 100 years means taking a different approach to financial plans. One of the most challenging things to consider is legacy. In the UAE, nearly 70 per cent of the country’s wealthy have indicated in our survey that they plan to give away more of their wealth while they are alive. Over 70 per cent said that they want to leave more of their legacy to charities, foundations and good causes,” said Ali Janoudi, Head WM Central Eastern Europe, Middle East & Africa at UBS.
The 100-year life is changing investment behaviour in the UAE, too. Nearly half 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.
Living to an advanced age is even impacting the way wealthy investors plan their legacy. This process will also start earlier, with 64 per cent planning to give more away while they’re still alive.
Despite all the financial challenges of living a 100-year life however, good health still takes precedent over abundant wealth, according to the UAE’s HNWIs. And while 91 per cent are in good health today, 60 per cent admit fears about their health deteriorating in the next decade. Indeed, the average wealthy UAE citizen would sacrifice over half of their wealth today if that could guarantee another ten years of healthy life.
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