NEW YORK--(UBS Wealth Management Americas today released its second UBS Investor Watch report providing insights on core affluent and high net worth investor sentiment. The survey shows that, despite being increasingly concerned about the political environment in Washington and their personal ability to afford long-term care, investors are feeling better about their own financial situation. UBS Investor Watch indicates that long-term care concerns have surpassed retirement issues as the most critical of investors’ personal finance worries for the future. Still, investor confidence in their personal financial situations was at higher levels in January than before the U.S. elections.)--
“Today, we are seeing long-term care trump retirement as investors' number one personal concern. The need for advice is even more critical in this environment.”
“The continued uncertainty in Washington is having a tremendous effect on investors,” said Paula Polito, Client Strategy Officer of UBS WMA. “Today, we are seeing long-term care trump retirement as investors' number one personal concern. The need for advice is even more critical in this environment.”
Highlights from the January 2013 UBS Investor Watch report include:
- The political environment in Washington caps investors' list of top concerns: Three in four investors (76%) are worried about the political environment in Washington, with 60% stating they are dissatisfied with the recent Congressional agreement to avert the fiscal cliff.
- Government “kicking the can” impacts willingness to invest, return expectations and long-term outlook: 60% of investors are dissatisfied with the fiscal cliff agreement, and 90% feel the deal did not do enough to address the national debt problem. With that in mind, investors indicated a decline in long-term economic optimism, and they are continuing to adopt a wait-and-see mindset toward investing as Washington works through outstanding fiscal cliff issues.
- Long-term care trumps retirement as biggest personal concern: The ability to afford healthcare/support in old age is the top concern among investors, with 26% agreeing it's their main worry versus 14% who said having enough money for retirement was their primary fear. Nearly three in four investors (73%) listed “staying healthy / fit” among their top three objectives, versus one in four (26%) who said the ability to retire when and how they want is a top-three goal.
- However, investors feel more confident about their own financial situation than three months ago: 56% of investors say they feel “very good” or “excellent” about their financial situation, compared with 44% as indicated in the October 2012 Investor Watch report. And investors who consistently follow their own financial plan feel markedly better about their finances, with 73% saying they feel “excellent” and “very good.”
- Finally, investors believe that advice is central to achieving goals in this environment: Overall, 68% say receiving good advice is highly important to achieving their goals. And in particular, relating to recent events – post-election and prior to the fiscal cliff – investors were twice as likely to take action if they spoke with their advisors about these topics. Among investors who sought advice about the election, 76% were highly satisfied with the advice they received.
The UBS Investor Watch survey was conducted among 2,056 investors, including current UBS clients. Investor Watch will continue to track overall investor objectives and concerns toward U.S. economic factors, as well as geopolitical events, each quarter. To download a copy of the January 2013 UBS Investor Watch report, please visit:
Notes to Editors
About UBS Wealth Management Americas
UBS Wealth Management Americas provides advice-based relationships through financial advisors who deliver a fully integrated set of products and services specifically designed to address the needs of ultra-high net worth, high net worth and core affluent individuals and families. It includes the Wealth Management US business, the domestic Canadian business and the international business booked in the United States.
UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its universal bank in Switzerland. Together with a client-focused Investment Bank and a strong, well-diversified Global Asset Management business, UBS will expand its premier wealth management franchise and drive further growth across the Group.
UBS is present in all major financial centers worldwide. It has offices in more than 50 countries, with about 35% of its employees working in the Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle East and Africa and 12% in Asia Pacific. UBS employs about 64,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).