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UK High Net Worth confidence at its highest level since 2020

David Barks Senior Director 29/03/2023

UK high-net-worth (HNWs) confidence has continued to see steady growth, reaching its highest level since our audience tracking began in 2020, surpassing its Q2 2021 peak.

The latest data from MillionaireVue, our omnibus of high-net-worth individuals, reveals UK millionaires’ confidence and particularly in their personal savings and investments has continued to steadily increase despite the current climate, reaching its highest level this quarter since 2020.

This audience’s confidence in the global economy has also grown for the fourth consecutive quarter. However, confidence in this particular area remains below the Q2 2021 peak, likely due to reservations surrounding rising interest rates, the war in Ukraine, and uncertainty in the property market.

Younger UK millionaires more confident in savings and investments

Confidence in personal savings and investments remains significantly higher among UK millionaires under 35 compared to older age groups, the younger age group is 36% more confident than their older counterparts. We also see differences in the age groups when it comes to equities and appetite for risk. Almost a third (30%) of millionaires cite market volatility as a risk, but this is significantly higher amongst those over 55 (35%).

Whereas this older age group are most concerned about recent market instability, they are significantly less concerned about sustainability equities in comparison to their younger counterparts. 9% of those over 55 are concerned with sustainability equities, while this figure is 20% among the 35 to 54 age group and 25% for those aged 18 to 34.

Nevertheless, inflation continues to weigh on the minds of UK millionaires, with nearly half (48%) concerned about its effect on investment portfolios. However, this concern has dropped 7% since the previous quarter (in line with inflation figures which have fallen since October).

Differing confidence across the pond

While UK millionaires’ confidence in the global economy and personal savings and investments continue to grow, millionaires in the US remain more pessimistic, particularly when it comes to confidence in the global economy, where the UK index is 15, 20 points above the US which is sitting at -5.

Propensity to spend remains unaffected

The overall propensity to spend on luxury items in the UK also remains stable. However, travel remains the main luxury category people are willing to spend on, driven primarily by the under 55s. Additionally, leather goods and fashion accessories have seen a 5% uptick in the propensity to spend.

Will it remain this way?

Notably, this survey was conducted in February before the collapse and acquisitions of both Silicon Valley Bank and Credit Suisse in March. The results reflect a somewhat stable stock market, which has since recorded significant losses. It will be interesting to see how recent events will impact the attitudes of millionaires across the UK and the US.

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