Wealthy Investors Worried About Life After Pandemic, See Lasting Lifestyle Changes: UBS Survey

Wealthy investors are as concerned as others about life after the coronavirus pandemic and expect permanent shifts in their lifestyle, a survey has found. The findings run contrary to the popular perception that the wealthy are insulated from the pandemic-induced lockdowns and economic devastation.

Other findings of the UBS survey carried out in 15 markets show that most of the wealthy investors plan to travel less, lower the frequency of visits to their offices, and are also contemplating moving out of large cities after the pandemic. A half intend to move closer to their families. The work-from-home model that has been embraced by a number of companies during the lockdown, is expected to encourage this lifestyle change.

Interestingly, two-thirds of the wealthy investors polled for the survey said that "life will never be the same again," and 67% admitted that the pandemic has changed their outlook on money. While 56% were anxious about not having enough savings to ride them through another pandemic, 46% expressed concern about having to work longer hours to make up for retirement losses.

Along similar lines, 60% were apprehensive about being financially dependent on their families during an illness, and 54% were bothered about their ability to leave legacies for the next generation.

The UBS survey polled more than 3,750 investors. Three-quarters of them anticipated "permanent lifestyle shifts," with two-thirds saying "the pandemic has altered how they think about their finances."

A large majority, 83%, of investors were looking for increased guidance on their finances during the pandemic. Tom Naratil, co-president of UBS Global Wealth Management and president of UBS Americas, said, “That means wealth managers have an opportunity to play an even more important role in their clients’ lives and prepare them for the post-pandemic environment.”

However, another UBS survey revealed an upside to this scenario. It was found that "savings acquired during lockdown are treated like windfall gain. Past evidence suggests that this will be spent within six months or so, on consumer durables. There is little evidence that consumers hold onto the money as a precaution."