30/09/2011
By Ilonka Oudenampsen
Three in four affluent European investors said they have been negatively impacted by the economic instability of the last few years, with 21% concerned they will have to delay retirement and work longer than planned, according to new research by Schroders.
The Schroders ‘European Wealth Index’ research examined the financial outlook and investment attitudes of affluent investors, those with €100,000 investable assets excluding their home, in 10 European countries.
Most respondents said they had been negatively impacted by economic stability, with people in Italy (93%), France (89%), Spain (88%), and Switzerland (81%) the most likely to claim negative impact. Whilst people in Sweden, the UK and Austria claimed to be the least affected, the figure for negative impact never fell below 69%, according to the survey.
The top concern in Germany (41%), Italy (39%), Spain (38%), Austria (30%), Sweden (29%) and Belgium (26%) was that investments and pensions would no longer provide for the standard of living individuals had hoped for in retirement.
Having to delay retirement and work longer than planned is a concern to 21%, but more so in Spain (38%), France (36%), Italy (33%) and Germany (27%). People in Sweden and the UK were least worried about this (16% and 12% respectively), although they also listed a shrinking pension pot and a lower standard of living in retirement as their biggest worries.
Peter Beckett, head of European marketing at Schroders, said: “It is clear from our research that, across Europe, affluent investors are feeling the impact of economic instability and are waking up to a worrying retirement gap. Nonetheless there is also a positive. The great majority of people we surveyed are aware of a problem, many have quantified its cost and impact and this positions them well to take remedial steps. The market, even for the savviest investor is challenging, but with the right professional advice that is tailored to local market challenges, investors can still hope to realise their retirement dreams and have the quality of life in retirement they originally hoped for.”
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