For more stories like this, sign up for the PLANADVISERdash daily newsletter.
HNW Investors Worry About Health Care Costs Due to Longevity
However, they also say their wealth has helped them live a healthier life, UBS found in a survey
Sixty-nine percent of high-net-worth (HNW) investors in the U.S. worry about how they will cover health care costs in their later years, as longevity continues to expand, UBS found in a survey. This compares to 52% of HNW investors around the world who share the same view.
Nonetheless, globally, 92% of these HNW investors believe that their wealth has helped them live a healthier life. The figure is only just slightly lower, 91%, in the U.S. UBS says that for investors with more than $10 million, their health care costs will be four times higher than those with fewer assets. This is because they spend more on preventive services.
Across the globe, 53% of wealthy investors believe they will live to be 100. In the U.S., 49% of these investors would like to live that long, but only 30% expect to.
Fifty-two percent of wealthy investors in the U.S. believe that working longer is good for their health; around the world, this figure is 77%.
Due to longevity, 75% of U.S. wealthy investors plan to make financial changes. Around the world, this figure is 91%. Seventy-seven percent of U.S. wealthy investors say health is more important than wealth, and 57% are worried their health will deteriorate in the next 10 years.
The average wealthy U.S. investor would sacrifice 27% of their wealth to live an extra 10 years of healthy life. Seventy-one percent of wealthy Americans would rather live one year longer and leave a smaller inheritance. Fifty-six percent would like to live as long as they are mentally capable, even if their physical health deteriorates. By comparison, 29% would like to live longer if physically but not mentally capable.
These findings are based on a survey of nearly 5,500 HNW individuals that UBS conducted in 10 markets around the globe.