High net worth individuals (HNWIs) are increasingly worried about the impact of inflation and tax rises, particularly on their children’s wealth, according to Saunderson House’s fourth annual Financial Wellbeing research.
The Financial Wellbeing: Family, Tax and Inflation report showed the top four concerns in 2021 as deterioration in mental and physical wellbeing (47%), a long-term rise in inflation (30%), a change in the amount of tax they pay (23%), and climate change (23%).
Olly Cheng, associate director of Saunderson House, said: “A deterioration in general wellbeing remains the top financial concern among HNWIs for the second year running, demonstrating the continued importance ascribed to mental and physical health.”
Inflation has re-emerged as one of the primary financial wellbeing concerns alongside in taxation in 2021, despite not featuring in the top five since 2018.
Anxiety over the potential economic fallout from Covid-19, however, has dramatically reduced compared to last year, said Cheng.
Macro issues such as damage to the environment have also increased in importance and pertinence among HNWIs, as climate change entered the report’s top four financial wellbeing concerns for the first time.
Cheng said that much attention has been given to the issue this year, from the IPCC’s ‘code red for humanity’ report in the summer, to COP26 last month.
“In one sense, world views have shrunk – there is a clear focus on spending more time with family and focusing on home renovations and UK property investment rather than abroad. On the other hand, the bigger macro issues such as climate change are coming to the fore, and there is a growing feeling amongst older generations that something needs to change,” added Cheng.
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