Arbuthnot Latham: Financial wellbeing survey of wealthy individuals reveals North-South divide

Financial wellbeing survey of wealthy individuals reveals North-South divide

• High-net-worth individuals (HNWI) in the North West and North East of England are the least optimistic about their ability to retire on time
• Nearly three-in-ten in the north of England believe they will miss their planned retirement age

Research* carried out for Arbuthnot Latham, the private and commercial bank, has revealed a disparity between the North and South of England regarding wealthy savers’ confidence about their ability to retire at their planned age.
The research – Healthy, wealthy and wise – exploring attitudes towards money and financial wellbeing – found residents in the North East and North West are the most pessimistic in England about their ability to retire at their desired age of 61, with 29% of those in the North East and 28% in the North West believing they will no longer be able to retire at that stage given the current financial outlook.
By contrast, 83% of London and East Midlands residents remain optimistic that they can retire as planned; with only 17% doubtful.
Despite all respondents in the research having at least £100,000 of ‘investible assets’, those in the North are also significantly less confident that their pension pot will enable a comfortable retirement, with only 77% of those in the North West, and 78% in the North East, agreeing – compared to nearly nine-in-ten residents from southern England (with London at 87%, and 93% in the East Midlands confident that their savings will enable a comfortable retirement).
Those in the north are also significantly less aware of how much they have saved in their pension pot, with only 43% of those in the North East, and 53% in the North West aware of the value of their savings – significantly lower than those in London (72%) or the East of England (70%).
Chris Wiltshire, Director and Head of North West Office said: “Many of the clients we serve in the North are entrepreneurs. I think this partially explains the difference in approaches with counterparts around London and the South East, many of whom are executives and professionals whose pensions are managed by their employer.
“Business owners typically take ownership of all aspects of their business – including the financial wellbeing of themselves and their staff. This is where the right advice can alleviate worry and allow the individual to concentrate their energy on the business, safe in the knowledge longer term planning is in place.
“Regardless of your location, the best way to deal with worries about the future is to take action now. Be that an exploratory conversation with your advisers or starting to deploy your strategy now, it’s possible to address your worries and feel confident about your financial future.”

ENDS
FOOTNOTES
• *Arbuthnot Latham partnered with Atomik Research, an independent market research agency, to survey more than 500 UK residents with a net worth of at least £100,000, which took place between 30 November and 5 December 2023. 60% of respondents have a net worth (excluding property assets) of between £100,000 and £499,000, and 40% have at least £500,000.
• Investible assets exclude property wealth.

ABOUT ARBUTHNOT LATHAM

Arbuthnot Latham & Co., Limited, established in 1833, is a London‐based private and commercial bank, also specialising in wealth management and specialist commercial lending including asset-based lending, asset finance, and leases. With regional offices in Manchester, Bristol and Exeter, Arbuthnot Latham & Co., Limited is owned by Arbuthnot Banking Group PLC.

Arbuthnot Latham aims to provide a comprehensive approach to private banking, commercial banking, and wealth management with its four core services; Private Banking; Commercial Banking; Wealth Planning and Investment Management.

Private Banking: A complete suite of Private Banking services created around clients’ lifestyles and circumstances include: deposit facilities, loans, debit cards, money transmission worldwide, money market deposits in major currencies, and a wide range of treasury and foreign exchange services. All handled by a dedicated Private Banker responsible for the relationship of the client with the bank.

Commercial Banking: Full Commercial Banking offering to independent owner-managed businesses. The sector teams – Media, Real Estate and Professionals and Trading Businesses – all have considerable experience in their sectors and deliver a tailored and personal experience to clients. The Commercial Banking team provides a range of bespoke lending facilities, deposit and FX management, a suite of Visa Card products, and money transmission services all supported by online banking and commercial banking experts.

Investment Management: Highly diversified multi-asset portfolios managed predominantly under the Investment Management team’s discretion and designed around clients’ requirements. Free from restriction of affiliated products, Investment Managers strive to deliver risk optimal post-tax returns on clients’ wealth via a wide choice of management styles. Our discretionary service for UK financial advisers provides both bespoke investment management services as well as platform model portfolio services.

Wealth Planning: Based on a clear understanding of a client’s situation and immediate requirements as well as their long-terms goals. A Wealth Planner is assigned to work with clients to develop and execute a bespoke wealth plan, including retirement, estate and succession planning as well as insurance and tax planning issues.