A new international survey has found that the top three financial resolutions for high net-worth individuals in 2014 are to save more for their retirement, include more higher risk investments in their portfolios and to provide greater levels of financial support for their families.
Almost 550 clients of the deVere Group, an independent financial advisory firm, were questioned about their financial resolutions ahead of the new year.
Some 38% of respondents said that they would be focusing on building up their retirement funds. One-fifth stated diversifying their investment portfolios to include riskier opportunities was a priority, whilst 22% said they wanted to be able to offer financial assistance to their families.
Nigel Green, founder and chief executive of the deVere Group, said, “The poll highlights that even society’s wealthier people are concerned about being able to fund the lifestyle they desire throughout retirement. Their worries are fuelled by soaring living costs, low interest rates, and the possibility of high, long-term medical and/or care bills in the future.”
Whilst the economy has improved over the course of 2013, separate research suggests that more than half of UK residents are concerned about their financial situation. These worries were largely fuelled by the rising cost of living.
Planning ahead for retirement and considering the financial impact of living longer is vital. A survey conducted by BlackRock recently found that 65% of financial advisers think some investors are making a mistake by focusing on the short-term returns of their investments.
Longer life expectancy in the UK is likely to place pressure on medical and care facilities, making this area an ideal sustainable investment opportunity. Seb Beloe, head of sustainability research at WHEB Asset Management, has previously described investing in an ageing world as a smart investment trend.
Diversifying investment portfolios to take more risks is one way investors can increase their chances of higher returns. Green added, “High net-worth individuals’ appetite for risk appears to be growing further as we move into the new year.
“The generally more optimistic feeling about the global economy combined with the low interest rate/creeping inflation environment, amongst other issues, is driving an increasing number of people to consider their holdings of higher risk-higher return investments to maximise their wealth in 2014.”