The UK government has changed frequently over the last few years and this is something high net worth individuals would like to see an end to, for the sake of their finances.
Wealth manager Saunderson House surveyed 100 HNW UK residents, who have £800,000 ($1m, €930,000) or more of investable assets (excluding property), for its Passing on Wealth: Motivations, Emotions and Challenges report.
It found 75% think that a new prime minster in 10 Downing Street is the single biggest threat to their finances.
The UK has had three prime ministers since 2016, with David Cameron and Theresa May battling to hold on to the role before incumbent Boris Johnson came into power in July 2019.
Correspondingly, HNW individuals consider a potential change in the amount of tax they will have to pay as the second-biggest threat to their finances, with two-thirds (66%) concerned by this.
The research found that 49% consider a deterioration in their physical and mental health, as well as having clarity and confidence over future plans, as the third-biggest threat to their financial wellbeing and independence.
Some 41% also view a global economic slowdown as a threat.
No surprise
Gareth Parsons, financial planning director at Saunderson House, said: “Our research took place against the backdrop of ongoing political and economic uncertainty, so it’s not particularly surprising that HNW individuals consider a change in government as their biggest financial threat.
“We conducted this research to better understand what concerns HNW individuals have when it comes to passing on wealth.
“At Saunderson House, we recognise the connection between people’s finances and their non-financial wellbeing.
“While there is no single remedy for today’s political and economic uncertainty, professional advice can help people manage those risks effectively.
“As well as good communication, clarifying your risk appetite and diversifying your investments can help protect your money and ensure that you pass on your wealth in the most impactful way possible.”
Methodology
The firm ran the online survey between June-August 2019 and the respondents were an equal mix of working and retired. They also conducted 16 in-depth interviews.
The majority of HNW individuals were from the legal and accountancy profession; the remaining came from the banking, insurance sectors or are classified as entrepreneurs.
