In a survey of more than 600 young, high-net-worth individuals (HNWIs) across Northern Europe, Luxembourg life assurance specialist, OneLife, has found that 60% of those under the age of 35 are taking shelter from challenging market conditions and turning to asset protection and investment structures like life assurance in order to safeguard their wealth.

Among the participants who responded to the survey, with an average wealth level of €2.2 million, 26% said they were concerned about inflation while 21% said they were concerned about low interest rates affecting their ability to grow their wealth. 

Within such a multi-dimensional market environment, HNW investors are raising their expectations of their wealth managers, say the report’s authors, wanting greater investment returns coupled with active risk management. However, just a third of under-35 investors say that their wealth manager is their primary resource for learning about wealth.

Instead, say the authors, “HNWIs under the age of 35 are looking to their wealth advisors to help them drive forward their wealth creation strategy.”

Commenting on the findings, OneLife’s Chief Executive Officer Marc Stevens stated “Increasingly, the wealth advisor is required to play multiple roles to support a client in their wealth creation. They must plan ahead for this increasingly demanding clientele, taking into consideration their geographical mobility and other multiple personal needs.”

While young investors benefit from a global outlook, home, for Luxembourgers, is still where the heart is, thanks to its optimal tax environment. One in four investors choose to invest in Luxembourg for this reason, a larger proportion than in any other geography.

“Fiscal neutrality is a pillar of the Luxembourg value proposition,” said Stevens. “Clients with a contract in Luxembourg are only subject to tax in their country of residence, which is a benefit in cases where clients relocate to another country. In reality, the benefits of investing in Luxembourg are far broader. This market also delivers asset protection, diversification and flexibility for investors.”