Affluent households in the UK are buying more luxury items despite the fact that their confidence in the economy is falling, according to a YouGov study.
The Affluent Perspective study, based on the views and behaviours of people in households earning £100,000 or more a year, shows that the number of affluent people buying luxury items has jumped from 56% in 2017 to 69% this year. But only 13% of affluent households in the UK are confident in the global economy.
One reason why affluent households are increasingly buying luxury items is that many find it difficult to stop. The report reveals that 39% of wealthy people in the UK believe that “once you experience luxury, it’s hard to scale back”.
As well as concerns in affluent households about issues such as their children’s futures, education and healthcare, there is a growing concern about the security of their retirement assets. A quarter (26%) of wealthy households are concerned about this – up from 22% a year ago.
Meanwhile, confidence in their ability to handle their personal finances has dropped from 44% in 2017 to 31% this year.
Cara David of YouGov says: “Whether they see the glass half-full or half-empty, luxury continues to hold a committed place in their lives.”