Wealthy individuals may be happy with their money now, but are worried what will happen when they retire, according to new research.
A huge 93 per cent of high net worth individuals (HNWIs), and 82 per cent of High Earners Not Retired Yet (Henrys) and High Earning Millennials (earning between £40,000 and £99,000), feel confident about what the future holds financially.
But the results also show that a large percentage of each group feels they will enjoy a diminished standard of living in retirement. Just 18 per cent of HNWIs thought their pension would provide for them.
“Feelings about pensions amongst HNWIs are interesting – despite the fact that equities have performed well, negative perceptions about pensions still prevail,” said Canaccord's David Goodfellow.
“In my opinion, people do not understand the benefits of tax relief around pensions and are put off by the government's constant tinkering.”
Social care and care homes were named as the biggest factor in wealth erosion, while HNWIs also mentioned tax and millennials gave weight to macroeconomic factors such as Brexit.
Almost a third of HNWIs put their faith in property to contribute most to their long-term wealth, while 27 per cent relied on equities.
Pensions were favoured by 38 per cent of Henrys, with 30 per cent choosing property and 13 per cent plumping for equities.
But for millennials 30 per cent placed property top of the list, followed by 27 per cent with pensions and 11 per cent with – surprisingly – cash accounts.