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The Resilient Rich
- 2. Methodology Online survey across 20 Inspire brands resulted in over 1400 responses Fieldwork conducted during May/June โ09 Promoted via email, banners & buttons and e-newsletters Sample size of 517 adults who regularly interact with either Country Life and/or CountryLife.co.uk
- 3. Who are the Resilient Rich? 42% Male 56% Female Average Age = 50 Most likely to live in South East, South West or Midlands Married with children Average household income of ยฃ126,500 Social Class AB Working full or part time Just over a quarter privately educate their children
- 4. Most common occupations 42% run, own or are key decision makers in an SME Directors 19% I.T Professionals Consultants Engineers Accountants Lawyers Teachers Farmers/land owners 9% 9% 4% 2% 2% 2% 3%
- 5. Impact of the recession 60% are still spending just as much on areas that are important to me (national average = 23%) 37% still spend money as and when I want to In contrast, 71% of consumers nationally have cut down on their spending as a result of the current situation (BRMB Confidence tracker)
- 6. Optimistic about the future It will get much better 3% It will get slightly better 43% It will stay the same 24% 70% are not worried 44% agree now is a great time to invest
- 7. A Positive Attitude Business continues to be bouyant Able to buy more property at a better price 87% feel very/quite secure in their jobs I am busier than ever and have taken on extra staff to help me If I want something I will still buy it My company is doing well
- 8. Taking advantage of opportunities and deals! 70% agree now is a great time to pick up bargains on expensive items 61% are more attracted to special offers and deals on products than before
- 9. How they manage their finances
- 10. Confident in dealing with their finances Fairly confident: 55% Very confident: 27% Not very confident: 13% Not confident at all: 1% Confident Not confident Men are more confident at dealing with finances than women
- 11. Take finance seriously 60% do not put off sorting out their finances 81% take their financial affairs seriously 55% agree their finances are carefully budgeted 59% spend time making sure their finances are optimised
- 12. โฆ but donโt want to complicate things 60% like to keep their finances uncomplicated 23% prefer to consolidate as much as possible with one company
- 13. A wide portfolio of Investments Precious Metals 5% Property Abroad 8% Fine wines 7% Commodities 4% Property in Britain 57% Savings accounts/ISAs 77% (index 203) Other alternative investments include premium bonds, classic cars and horses Arts & Antiques 18% Stocks/shares 46% Men are more likely to invest across the board, especially in stocks and shares
- 14. Turn to professionals 40% have a financial Advisor (Index 222) 40% have an accountant 20% use a lawyer 14% have access to private banking 12% use a stock broker
- 15. Big purchases planned this year Holiday 60% Car 18% PC/Laptop 19% House 18% TV 14%%
- 16. 3. Changing Spending Habits
- 17. Changes in spend over the last 12 months The main areas they have cut back on are clothes and jewellery/watches Their spend has remained relatively stable for insurance, magazines , grooming/toiletries and food & drink Importantly they are still outspending the average person in all areas
- 18. Holidays - 6 trips per year 3 holidays and 3 short breaks planned in the next year Less likely to take โstaycationsโ than the average adult (Index 58 ) Spend ยฃ1,850 on their main holiday - more than twice as much as the average adult
- 19. Property ownership 57% own 1 property 18% own 2 properties 8% own 3 properties 6% own 4 properties or more Average ownership of 2 properties Men are likely to own more property
- 20. Main reasons for buying Relocating due to job 4% Holiday home 3% Business reasons 3% Relocating for schools 2% Lifestyle choice 35% Investment 36% Downsizing 7% Upsizing 9%
- 21. A big investment 51% own a property worth ยฃ500k or more 24% own a property over ยฃ1m Average value of their property is just over ยฃ1m Each of their properties is worth an average ยฃ537,000 โ 3.5 times higher than the national average
- 22. Land Owned Readers own on average 18 acres of land 66% own up to an acre of land 26% own between 1 and 25 acres 8% own more than 25 acres
- 23. And planning to buy/move 27% are planning to buy in the next 12 months 57% feel itโs a good time to invest in property 49% are cash buyers - older respondents are more likely to pay cash
- 24. Properties planning to buy Main residence 49% Commercial property 11% Investment property/buy to let 36% Second home 14% Main residence 5% Commercial property 3% Investment property/buy to let 7% Second home 13% 80% plan to buy in the UK and 20% plan to buy abroad
- 25. To Summarise โฆ are optimistic despite the recession โฆ are in control of their finances โฆ are still spending on luxury items โฆ have a strong property portfolio that they plan to extend โฆ are always looking for deals and opportunities to exploit
- 26. Any Questions? Gina Lee-Young Head of Insight Tel: 020 314 84621 Email: gina_lee-young@ipcmedia.com Kathy Simonovitch Senior Insight Executive Tel: 020 314 84622 Email: kathy_simonovitch@ipcmedia.com For more information on Resilient Rich please contact:
Editor's Notes
- Hello and welcome. Today I am going to present the results of a financial survey carried out by IPCโs research department, Insight, earlier this year. Part of that survey related to property The objective for the research was to find out more about our affluent audience and their attitides towards spending and investing in the current economic climate - this is the first piece of Inspire wide research ever conducted into our readers finances and it has given us valuable insight into how the affluent have coped throughout the recession. Inspire has unique data for this hard to reach audience.
- The research was carried out with an online survey across 20 Inspire brands which was live throughout May & June this year. Brands included Horse 7 Hound, Decanter, The Field, Shooting Gazette, Yachting World, Motor Boar & Yachting, Golf Monthly, Rugby World and their associated web sites. We achieved a total sample size of 1400 high net worth consumers who regularly interact with an Inspire brand โ so these are users who either regularly read one or more of our magazines or regularly visit one or more of our websites, or both. Importantly they have a strong relationship with the brand. The survey was promoted via a number different methods to promote the survey, via email using names on the IPC database. We also placed banners and buttons on all the relevant Inspire websites and the survey was mentioned on a number of email newsletters. Today we are going to concentrate on those respondents who either regularly read Country Life or regularly visit CountryLife.co.uk, or both
- So looking at the overall picture of the Country Life respondents, we had slightly more female than male respondents. They have an average household income of ยฃ126,500, which is over 4 times higher than the national average of just over ยฃ29,000. They have an average age of 50 and 45% are social class AB, which is 66% higher than the national average. Just over a quarter privately educate their children which is 4 times higher than the national average. The independent sector educates around 6.5% of the total number of schoolchildren in the UK (source: Independent Schools Council) They are most likely to live in the South East, South West or Midlands. They are likely to be married with children and most are either working full or part time, which leads us onto their occupations.
- Unsurprisingly many of them have high profile jobs, earning high incomes. 19 are directors, 4% are company directors and 2% are MDs. (across the whole survey 13% are directors) Respondents were also engineers, lawyers and accountants . 42% run, own or are key decision makers in a small to medium enterprise.
- The recession seems to have had minimal impact on this group- t hey are still spending with 60% still buying the things that are important to them (against a national average of just 23%) , 37% still spend when and where they want to in contrast to 71% of the population having to cut down as a result of the recession.
- And not only are they still spending, but they are optimistic about the future. 70% are not worried about the coming months, this shows their confidence in their current financial state. On top of this, 44% agree that now is a great time to invest.
- They are also positive about their work life with 87% feeling very or quite secure in their jobs. This may be due to the fact that they tend to be in higher positions as we saw earlier or potentially own their own businesses. CLICK 18% of resilient rich are retired
- Even though they are less affected by the credit crunch, they are still on the lookout for good deals and bargains. 70% agree now is one of the best times to buy expensive items and 61% are more attracted to special offers and deals than before. This is supported by recent research which states that 34% of AB consumers are stocking up on products when they are on promotion. Good deals and offers are definitely now influencing the shopping decisions of the wealthy showing that theyโre also becoming savvy shoppers. But what is important to stress is that although they like a good deal, they are not reliant on them and if they want to buy something, they can and will still purchase regardless.
- Lets now look at how they manage their financesโฆ.
- A huge 82% are confident at dealing with financial matters. Origin panel results: 15% very confident 61% fairly confident 18% not very confident 6% not very confident at all Men are also generally more confident at dealing with their finances than women! This is actually supported by a recent IPC Origin Panel study based on women with their figure on womenโs financial confidence being 6% lower.
- Another positive note is that 81% take their finances very seriously and over half agree they carefully budget. They also spend time on their finances, they do not put them off and they make sure they are fully optimised.
- Although they keep good control of their bank balances, they also like to keep things simple and uncomplicated. They lead very busy lives and hence like offers where they can consolidate with one company. They are interested in products that make their lives easier and make the most of their large bank balances.
- They have a wide array of investments, which again proves their high net worth. They are twice as likely to have savings accounts or ISAs, over half have invested in UK property โ i.e. they view their main property or property portfolio as an investment - and just under half in stocks and shares. As might be expected, they also invest in more niche areas such as arts and antiques, fine wine and precious metals, showing that their leisure interests combine with their investments. Other areas of investment includes premium bonds, classic cars and horses.
- It is not surprising that with all this wealth and a multitude of investments, they need professional help to make sure everything is kept in order. 40% have a financial advisor which is double the national average, 40 % have an accountant, 20% regularly use a law firm, 14% use private banking and 12% use a stock broker.
- And they are still looking to buy more and expand on what they already have โ not only do they want to take advantage of special offers, but they are planning some big purchases this year, including travel, technology, cars and property. T
- Their spending habits have changed in the past year.
- Obviously they are not totally immune to the downturn and have made some cutbacks. The two main areas theyโve cut back on are clothing and jewellery/watches. Areas where they haven't changed their spending too much are: insurance, magazines , grooming/toiletries and food & drink. What is important to remember is that they are still outspending the average person in all areas.
- Holidays is one area where they havenโt really made major cutbacks unlike many others in the UK. They are still going on 6 trips a year, 3 of which are longer holidays and 3 of which are short breaks either in the UK or abroad. Nationally there has been a trend to taking more staycations โ ie staying in the UK for holidays to save money but this is less likely to be the case for the resilient rich who are still going abroad as often as before. Theyโre also still spending a lot on their holidays โ an average of ยฃ1,850 on their main holiday which is more than twice as much as the average adult. (average UK spend is ยฃ825)
- Property is another big area of expenditure. 57% of CL readers own a property while 32% own two or more. On average they tend to own two properties and men are likely to own more property. Property is viewed as key part of their investment portfolio.
- The majority are buying property as an investment (as we heard earlier) or as a lifestyle choice. The next two reasons are upsizing and downsizing, depending on what stage of their lives respondents are at. Other reasons include relocation due to a new job, business reasons, buying a holiday home and relocating due to schooling.
- The average value of property the Resilient Rich own is a just over ยฃ1m. Working this out per property, it equates to ยฃ537,000 which is 3 and a half times higher than the average UK property is worth (ยฃ152,000 - source: land registry) Just over half own a property worth half a million or more and 24% own a property worth over a million.
- The average works out at 18 acres per respondent although this has to be taken in context as some respondents are farmers or land owners who own hundreds of acres while the majority will own a lot less.
- Over half feel itโs a good time to invest in property due to low interest rates and the possibility of snapping up bargains for example on reposessions. In fact 27% are planning to buy in the next 12 months which is good news for the property market. Also, nearly half of them are cash buyers.
- 80% plan to buy in the UK and 20% abroad Of those who are planning to buy a property in the UK nearly half plan to buy their main residence and just over a third play to buy an investment/buy to let property. And those who are planning to buy abroad the majority are looking to buy a second home or an investment property/buy to let.
- So that concludes the presentation. Just to summarise then: The resilient rich are: Optimistic despite the recession Theyโre always looking for deals and opportunities to exploit Theyโre in control of their finances Importantly theyโre still spending on luxury items such as holidays and cars They have strong property portfolio that they plane to extend in the coming months