- A report released by UBS on Monday found that the pandemic has changed wealthy millennials' attitudes toward their money and how they want to invest it.
- Many of the millennial investors surveyed revealed that the pandemic has hit them hard financially.
- But despite the economic impact, millennial respondents were more likely than other generations to increase financial support for friends and family members in need.
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The pandemic has changed the financial habits of wealthy millennials, according to a new UBS Investor Watch report released on Monday.
In May, UBS surveyed over 3,750 investors across 15 countries, including the US, the UK, Germany, and Hong Kong. The respondents comprised three age groups: those between the ages of 25 and 30 with at least $250,000 in investable assets, 31 to 39-year-olds with at least $500,000 in investable assets, and those 40 or older with at least $1 million in investable assets.
Ultimately, UBS found that younger investors (between the ages of 25 and 39, defined by Pew Research Center as millennials ) were hit the hardest financially by the economic downturn caused by COVID-19. Seventy-three percent of millennials said they were financially impacted, compared to 66% of boomers.
In addition, nearly 3 in 4 millennials surveyed revealed that the pandemic has changed the way they think about money, compared to just over half of boomers. The result is that 71% percent of millennials now feel as if they have to work harder to make up for COVID-related financial losses, and 68% are worried they currently do not have enough money saved in case there is another pandemic significantly more than the respective 34% and 38% of boomers who feel this way.
Despite the economic impact COVID-19 has had on young investors, a majority revealed that they still want to use their money to help others
Sixty-nine percent of millennials say they're "highly interested" in sustainable investing (defined by UBS as investment strategies that "aim to incorporate environmental, social, and governance considerations into investment process and portfolio construction") because of the pandemic, while 60% said they now want to get involved in philanthropy.
Over a third of millennials also revealed to UBS that they have increased their financial support of family members and friends, during the pandemic, compared to just 17% of boomers who reported doing the same. Certain non-American millennials were more likely to report this, however: 49% of millennial investors in Latin America and 42% in Europe (excluding Switzerland) said they've increased financial support to family and friends, compared to just 31% of millennial Americans.
Business Insider's Hillary Hoffower previously reported on the way the pandemic has impacted the financial lives of millennials. In June, Hoffower wrote that the pandemic could stunt the generation's quest for homeownership , as the US enters into a recession and over 50 million Americans file for unemployment.
Hoffower also separately checked in with the Henrys those millennials who are "high earners, not rich yet" and how they've dealt with major lifestyle adjustments during the pandemic. With lockdowns taking away many of the Henrys' preferred leisure activities like staying in luxury hotels, taking international vacations, and paying for subscription services like ClassPass financial advisors told Hoffower that some Henrys have begun reassessing their relationship to money and are starting to set up better savings plans in case another unexpected financial scenario occurs, echoing UBS' findings regarding young investors in this more recent report.
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SEE ALSO: Henrys millennials who earn 6 figures but still feel broke were forced into better money habits during lockdown, but they're facing a new challenge as businesses reopen: resisting their old lifestyle