The definition of what it means to be wealthy for high-net-worth individuals depends, to a large extent, on how old the person is, according to Boston Private, a private bank and wealth management firm.
For members of younger generations, Gen X and millennials, being wealthy means being successful and happy. For older generations, baby boomers and the silent generation, being wealthy means achieving peace of mind and independence, according to the Boston Private’s “The Why of Wealth Survey.” The survey, which was released today, included 400 individuals with at least $1 million in investable assets.
“There are big differences in emotional wealth, or the emotions, feelings and attitudes created by wealth, between millennials and Generation X, who are still building their wealth, and baby boomers and the silent generation, who are focused on enjoying, managing and sharing their wealth,” the survey concluded. The survey defined millennials as those individuals 25 to 40 years of age, Gen Xers as 41 to 56 years of age and baby boomers and the silent generation as 57 years old and older.
For all respondents, satisfaction, security and responsibility are the three emotions most often associated with their wealth, the survey said. Nearly half of all respondents also said their primary objectives in attaining wealth are to live a life of pleasure with no financial concerns and to improve their personal healthcare.
“These goals speak to the changes brought about this year where having a nest egg of savings to fall back in tough times rose in importance and healthcare became top of mind for everyone around the world,” Boston Private said.
The pandemic, which affected people from all economic levels to a certain extent, made 60% of high-net-worth people re-evaluate their perceptions of wealth, including raising their awareness of the need to give back to the community. More than half increased their donations to charity last year, the survey said.
But the pandemic also raised new areas of concern for wealthy individuals, such as growing worries about such things as increased taxes; large, unexpected expenses; a potential financial crisis; inflation; and market volatility.
The number of financial concerns related to the the Covid-19 crisis “show how the pandemic has permeated investor mindsets and is now a major worry. It is seen both as a potential threat to health and wealth, and is also expected to have a negative economic impact on a wider scale” in the future, the survey said. “Time will tell if this is a long-term change, or a temporary effect.”