The inaugural international edition of UBS's «Investor Watch» report reveals changing perceptions toward post work years.
The UBS survey found that High Net Worth Individuals no longer equate retirement with old age. Instead, they view retirement as a chance to begin new ventures, the most popular of which include entrepreneurship, lifelong passions or travel.
Respondents in the US, the U.K., Germany, Singapore and Hong Kong now regard retirement as a new lease on life. As life spans increase, retirement is no longer perceived as a single period but has evolved into three distinct phases: Transition (50-60), My Time (60-80) and Golden Years (80-90+).
«Many of our clients are first or second generation entrepreneurs who are at a stage of life where they need us to help them with wealth preservation and wealth planning. In many cases, they neglect to plan ahead for their retirement, as well as for leaving a family legacy and inheritance,» said August Hatecke (pictured), the newly appointed Head of UBS Wealth Management Southeast Asia.
Entrepreneurs are Different
One key finding of the survey highlights a different mind-set among entrepreneurs. This is interesting for Asia, and especially Singapore, as many of the wealthiest families and individuals are first and second generation business owners.
In Singapore, age is not a barrier to starting a business, as some of our survey respondents have set up new businesses upon retirement. Women start their own businesses for financial stability, while men do it for legacy. Women see starting a business as having a direct relationship with their retirement savings; 48 percent of women start a business to increase their yearly returns and are confident that the proceeds will support them in retirement.
Realistic Perspective
For entrepreneurs, retirement is often viewed with optimism. Entrepreneurs are savvy when it comes to retirement and have a more realistic perspective on what retirement entails when compared with their peers; 24 percent of entrepreneurs plan to focus on their career in retirement, while only 20 percent anticipate focusing on health issues.
Created in 2012, UBS Investor Watch is a quarterly publication analyzing investor sentiment and behavior, designed to provide a window into investors’ current, core, and often shifting priorities. The survey tracks, analyzes and reports the sentiment of affluent and high net worth investors. The 2016 survey is the first to be conducted globally.
