A study has found that 45% of high net worth individuals (HNWIs) in the UAE now believe they will live to 100 years of age, considerably above current national life expectancy forecasts in most developed countries.
This has led them to make significant changes in spending, investing and legacy planning, largely due to concerns over the cost of such a long life, particularly when it comes to healthcare expenditures.
The research was done by largest recurring global study of High Net Worth Individuals (HNWIs), UBS Investor Watch, which surveyed 5,500 millionaires with at least $1m investable assets excluding property.
It found that 81% of HNWIs (eight in 10 UAE investors) believe working is good for health, while 91% said health is more important than wealth.
Furthermore, it revealed the wealthiest investors expect to live the longest life, and are most willing to sacrifice wealth for better health, spending more on doctors’ visits, insurance premiums and preventive services.
Investors generally spend significantly on gyms, coaches, supplements and other “lifestyle” expenses, with millennials spending more on services than other generations, the research found.
“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,” said Ali Janoudi, head WM Central & Eastern Europe, Middle East & Africa at UBS.
Nearly 70% of the UAE’s wealthy plan to give away more of their wealth while they are alive, revealing they want to leave their legacy to charities, foundations and good causes.
While 91% consider themselves in good health today, 60% fear their health will deteriorate in the next decade.
