New research conducted by private and commercial bank, Arbuthnot Latham has revealed that 81% of the UK’s most affluent individuals are stressed about their finances, indicating that financial wellbeing is about more than just the totality of your wealth.
But what are the concerns keeping the UK’s wealthiest up at night and how has this impacted their future planning?
Revealed: The Top 5 Financial Concerns of the UK’s Most Affluent
Arbuthnot Latham’s study uncovered that the financial concerns impacting the UK’s wealthiest largely centre on future planning and retirement. The majority of those surveyed are most worried about maintaining their lifestyle later in life, and many are focused on how they will provide for future generations. The value of investments long-term is also a key stressor, coinciding with a 72% month-on-month increase in demand for low-risk investments.
| Financial Wellbeing Concern | Percentage of Respondents |
| Maintaining lifestyle in later life | 51% |
| Value of investments | 39% |
| Providing for future generations | 25% |
| Tax burden | 24% |
| Becoming a victim of fraud | 22% |
The table above shows the top five financial concerns of the UK’s most affluent based on the results of an independent survey of more than 500 UK residents with investible assets of at least £100,000.
However, for nearly a quarter of the UK’s wealthiest residents the most pressing financial concern is the tax burden of living in the UK. This aligns with Arbuthnot Latham’s finding that 59% of the UK’s most affluent are considering re-location.
Relocation Drivers: Understanding Why 59% of Affluent UK Residents Are Considering Moving Abroad
The verbatim responses to Arbuthnot Latham’s survey alongside the data indicate that reduced tax is one of the top three incentives for the UK’s wealthiest to re-locate.
| Reason to Consider Re-location | Percentage of Respondents |
| Improved standard of living | 36% |
| Lower property costs | 28% |
| Benefit from a more favourable tax regime | 21% |
The table above shows the top five financial concerns of the UK’s most affluent based on the results of an independent survey of more than 500 UK residents with investible assets of at least £100,000.
However, the top drivers incentivising high net worth individuals to move abroad focus on an improved standard of living in retirement. Women in particular are most concerned about quality-of-life post-retirement with 50% of those surveyed citing that ‘maintaining their lifestyle later in life’ is their biggest financial stressor overall.
Financial Priorities: Majority of Women Choose Security Over Luxury
Overall, male and female high-net-worth individuals are aligned on the priority lifestyle changes needed to save money for retirement. However, across the board women seem to be more willing to make cutbacks than men.
| Areas Respondents Would Consider Reducing Spending | Overall | Male | Female |
| Luxury items | 48% | 46% | 51% |
| Evenings out | 39% | 34% | 47% |
| Holidays | 32% | 29% | 37% |
| Car purchase/replacement | 30% | 29% | 30% |
| Philanthropic Giving | 24% | 26% | 20% |
The table above shows the top five lifestyle changes overall that the UK’s most affluent are willing to make to save money, including the differing answers between male and female respondents based on the results of an independent survey of more than 500 UK residents with investible assets of at least £100,000.
More than half of women are more prepared to cut back on luxury items. A higher proportion than men are also willing to sacrifice evenings out and holidays. The only area where more men prefer to cut back is on philanthropic giving.
Eren Osman, Managing Director, Wealth Management offers insight on the best ways to achieve financial security so people can look forward to their retirement feeling less financially worried.
“One of the best pieces of advice you could give, or receive, is to start saving for retirement as soon as possible. This is one of the cornerstones of long-term financial wellbeing.
“The effect of compounding – assuming annual growth – means you have a better chance of exponentially growing your retirement pot over time if you start saving at an early age.
“This is even more important because those planning for their retirement in 2024 are reliant on what provisions they can make themselves. The state age of retirement keeps increasing and most people nearing retirement do so without the guaranteed income stream of a final salary pension.
“My message is clear: if you want a comfortable retirement, it is up to you. Do as much as you can, as early as you can.”
Arbuthnot Latham also offer the following tips when considering your retirement:
· Consider what sort of retirement you want. How much will you need for day-to-day living, and for life’s extras?
· How much are you putting aside now? Do the tax advantages available make it more attractive to save more?
· Are you on track? Consider what you need your final pension pot to be and perform regular reviews.
Sources & methodology: Arbuthnot Latham partnered with Atomik Research, an independent market research agency, to survey more than 500 UK residents with investible assets of at least £100,000, which took place between 30 November and 5 December 2023. 60% of respondents have investible assets (excluding property assets) of between £100,000 and £499,000, and 40% have at least £500,000. Investible assets exclude property wealth.
More About Arbuthnot Latham: Arbuthnot Latham & Co., Limited, established in 1833, is a London‐based private and commercial bank, also specialising in wealth management and specialist commercial lending including asset-based lending, asset finance, and leases. With regional offices in Manchester, Bristol and Exeter, Arbuthnot Latham & Co., Limited is owned by Arbuthnot Banking Group PLC.
Arbuthnot Latham aims to provide a comprehensive approach to private banking, commercial banking, and wealth management with its four core services; Private Banking; Commercial Banking; Wealth Planning and Investment Management.
