Among the richest Italians, the conviction of living to be 100 is increasingly widespread and is leading to new choices in terms of expenses, investments and the approach to bequests. This is what emerges from the UBS Investor Watch, a research that focuses on investors with important assets and has over 5 people interviewed worldwide.
THE MONEY WILL HELP THEM LIVE LONGER
Two-thirds (66%) of Italian investors expect to live to be 100. This figure is significantly higher than current national forecasts of life expectancy in most developed countries.
Driving this expectation is a fundamental connection between health and wealth. In fact, 92% of Italian investors believe that money helps them live a healthier life.
While confidence in a long life remains high, many investors are concerned about the financial implications. Healthcare costs are their main concern, along with having to change spending habits to preserve wealth.
WORK IS ALSO AN IMPORTANT FACTOR
The results of the study reveal that work is also an important factor. In fact, 79% of Italian investors believe that working is good for their health and want to continue to be professionally active for as long as possible. However, many investors recognize that increased life expectancy also means having to work longer to financially support these long lives.
LONGEVITY REDUCES ITALIAN INVESTORS TO ACT DIFFERENTLY
The long life expectancy of up to 100 years is changing investment behavior also in Italy. Almost all Italian respondents stated that they have introduced – or intend to introduce – changes in financial behavior in response to extended life expectancy. While 32% are adjusting their spending habits, the main strategy, on which 39% focus, is to make more use of long-term investments.
Italian investors also show a more cautious long-term approach than other markets. Bonds, in particular, are seen as a strong long-term investment unlike perceived in other parts of the world. Holding liquidity, even for 30 years or more, is still a favorite option for 28% of investors. And while appetite for equity investment is still high, others in Europe are more confident about equity markets.
The prospect of living to an advanced age is also influencing the way investors plan for their inheritance. While children may once have been the main beneficiaries, today 61% of Italian HNWIs say they will skip a generation, leaving a larger share of their assets to their grandchildren. Indeed, 69% expect to anticipate the times and transfer part of the assets while still alive. Associations and charities will also benefit from this trend, given that more than half (56%) declare themselves willing to make donations of this nature as a consequence of a longer life.
HEALTH IS WORTH MORE THAN HERITAGE
Despite the financial challenges associated with living a long life, good health remains the top priority over wealth growth. And, while 85% of Italian investors are in good health today, more than three-quarters (77%) admit they fear their health will deteriorate over the next decade. The average investor declares himself willing to sacrifice more than a third of his assets today (35%) if this could guarantee another ten years of healthy life.
