UBS Q2 Investor Watch Reveals Boomers and Millennials are Redefining Family and Finance

Boomers offer friendship and financial support but one in four
Millennials still dips into retirement accounts

NEW YORK–(BUSINESS WIRE)–#babyboomersUBS
Wealth Management Americas
(WMA) today released its quarterly UBS
Investor Watch
report, “The
ties that bind
,” focused on how wealthy Baby Boomers and their
Millennial children are redefining the traditional parent/child
relationship. The findings reveal the stark contrast between
Millennials’ view of their parents as peers and friends, and Boomers’
more authoritative view of their parents. The strong ties between
Millennials and Boomers last far into adulthood and often include
financial support — nearly three quarters (74%) of Millennials receive
some form of financial assistance from their parents.

“Boomers and Millennials are as much friends as they are parents and
children,” said
Paula
Polito
, Client Strategy Officer of UBS Wealth Management
Americas. “Their unique relationship deepens their bond, and they
maintain both close emotional and financial ties.”

Redefining family

The majority of Millennials view their parents as peers, mentors and
friends, whereas more Boomers saw their parents as authorities. Nearly
three quarters (73%) of Millennials say they connected with their
parents more than once a week during college, compared to 34% of Boomers.

In terms of planning their own families, Millennials are putting off
marriage and children later than Boomers did, opting for adventure and
life experience: 28% say they have traveled the world for six months or
more, compared to 12% of Baby Boomers.

Boomers happily give Millennials financial support

Baby Boomer parents are overwhelmingly positive about their ability to
help their children financially. A majority (80%) said they feel good
about providing financial support, while only 10% say they withhold it
to teach adult children financial responsibility. However, 52% of
Millennials feel shame, frustration or guilt about accepting assistance
from their parents.

The financial support Millennials receive from their parents takes many
forms. Most is for necessities: health insurance (29%), home
buying/renting (28%), auto insurance (26%) and utilities (23%), though
Millennials receive funding for vacations (19%) and spending money (21%)
as well.

Millennials are almost twice as likely to move home after college as
their parents were. The primary motivation for doing so is to save
money; however, 24% of Millennials prefer to live with their parents,
while 22% say their parents wanted them to stay.

Fiscally conservative Millennials are focused on the “now”

Investor Watch found that when it comes to finances, a majority
of Millennials (73%) tend to focus on short-term needs and goals, such
as homes and travel, believing retirement is too far away to worry
about. Over half of Millennials with retirement accounts have or would
consider dipping into them to make a large purchase, with 25% having
already withdrawn funds.

Millennials have a completely different view of the markets than Boomers
and are highly risk averse. On average, Millennials hold twice as much
cash as Boomers (47% of assets vs. 20% for Boomers). However, they do
not appear to feel safer or more content with their finances: only 29%
are happy with their portfolios, compared to 78% of Baby Boomers.

“The ties that bind Boomers and Millennials are deep and long
lasting,” said Sameer Aurora, Head of Client Strategy for UBS Wealth
Management Americas. “The relationship has major financial implications
for both generations, but few Millennials are adopting their parents’
investment behaviors.”

We invite you to read the full report here: www.ubs.com/investorwatch

About UBS Investor Watch

UBS
Wealth Management Americas
surveys U.S. investors on a quarterly
basis to keep a pulse on their needs, goals and concerns. After
identifying several emerging trends in the survey data, UBS decided in
2012 to create the UBS Investor Watch to track, analyze and
report the sentiments of affluent and high net worth investors.

Methodology

For this 15th edition of UBS Investor Watch, 2,971
affluent and high net worth investors responded to our survey from March
10 – 22, 2016. The core sample of 2,050 investors have at least $1
million in investable assets, including 479 with at least $5 million.
With 93 survey respondents, we conducted qualitative follow-up
interviews. This UBS Investor Watch also includes an oversample
pf 1,131 Millennials:

  • Respondents ages 21 – 29 who have at least $100,000 in household
    income or $100,000 in investable assets
  • Respondents ages 30 – 36 who have at least $250,000 in investable
    assets

The sample was weighted by gender within each generation to match the
U.S. population.

Notes to editors

About UBS Wealth Management Americas

Wealth Management Americas is one of the leading wealth managers in the
Americas in terms of financial advisor productivity and invested assets.
It provides advice-based solutions and banking services through
financial advisors who deliver a fully integrated set of products and
services specifically designed to address the needs of ultra-high net
worth and high net worth individuals and families. It includes the
domestic U.S. and Canadian business as well as the international
business booked in the U.S.

About UBS

UBS
is committed to providing private, institutional and corporate clients
worldwide, as well as retail
clients in Switzerland
, with superior financial advice and solutions
while generating attractive and sustainable returns for shareholders.
Its strategy centers on its Wealth Management and Wealth Management
Americas businesses and its leading universal bank in Switzerland,
complemented by its UBS Asset Management business and its Investment
Bank. These businesses share three key characteristics: they benefit
from a strong competitive position in their targeted markets, are
capital-efficient, and offer a superior structural growth and
profitability outlook. UBS’s strategy builds on the strengths of all of
its businesses and focuses its efforts on areas in which it excels,
while seeking to capitalize on the compelling growth prospects in the
businesses and regions in which it operates. Capital strength is the
foundation of its success.

UBS is present in all major financial centers worldwide. It has offices
in more than 50 countries, with about 35% of its employees working in
the Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle
East and Africa and 12% in Asia Pacific. UBS Group AG employs about
60,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).

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Contacts

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UBS
Gregg Rosenberg,
212-713-8842
Follow us on Twitter: @UBSAmericas