Millennials Feel Pandemic Pain; Wealthy Flee Cities: UBS

The impact of the coronavirus pandemic has sparked uncertainty among the world’s wealthy investors, with a study showing nearly half said they may move away from cities.

UBS surveyed 3,750 wealthy investors across 15 markets globally, and found that up to 46 per cent “may forsake cities for less populated areas”, with 75 per cent of respondents saying they had concluded that “life will never be the same again”.

The Covid-19 pandemic has infected millions, bringing economic activity to a near-halt.

While its economic impact hasn't been uniform, with some—the world’s vulnerable and working classes— hit worse than others, the pandemic represents the largest economic shock experienced since the great depression in the 1930s.

Of the wealthy investors surveyed, UBS found that seven in 10 planned to reduce travel and trips to the office moving forward, and half planned to move closer to family.

While eighty-eight per cent of respondents said staying healthy is now their top priority.

“As investors navigate the Covid-19 crisis, they are seeking the latest insights and more tailored advice on how to achieve their financial goals,” UBS Global Wealth Management co-president Tom Naratil said.

The UBS Investor Watch survey included people from 15 countries with between $250,000 and $1 million in investable assets.

Sixty-seven per cent of investors also said the pandemic has affected how they think about their money, with more than half—56 per cent—worried about not having enough saved if there is another pandemic.

“The pandemic is causing many of them to rethink how they’ll fund their liquidity, longevity, and legacy needs.

“Seventy-five per cent of wealthy investors worldwide have concluded that life will never be the same again,” Naratil said.

Related: Millennials Making Big Move To Regions

The Swiss bank poll also found that generationally, millennials have been most affected by the pandemic, with most concerned about having to work longer as a result of Covid-19.

UBS found that millennials are most concerned about working longer to make up for losses, having enough money saved, and losing their job in the current environment.

“They are also concerned about having their money make a societal impact,” Naratil said.

“Roughly a third increased financial support for family and friends, while 69 per cent are interested in sustainable investing and 60 per cent in philanthropy due to Covid-19.”

In the USA, the study found that 82 per cent of wealthy investors see their old way of life as “changed forever”.

While Latin American investors feel they are the most affected by the pandemic—both financially and in terms of their way of life—but 84 per cent see the market volatility as an investment opportunity, compared with a global average of 79 per cent.

Forty-two per cent of European millennials increased their financial support to family and friends, compared with 34 per cent of millennials globally.

And 71 per cent of investors in the Asia Pacific region expect permanent changes as a result of Covid-19.