The majority of well-off Australians see luxury as defined by experiences, not owning luxury goods.
The Visa Affluent Study 2013 (the Study) reveals that high net-worth individuals in Australia focus their financial priorities on having more time to do what they want (86 percent) and enjoying once in a lifetime experiences (81 percent), over owning the best brands (51 percent).
The Study, conducted across Asia Pacific and the Middle East, looked at affluent consumers’ spending habits, priorities, optimism about the future and indexed their propensity to spend on discretionary items in the future.
Travel is the most highly ranked (78 percent) interest of affluent Australians and one in three are most likely to increase their spend on family holidays in the next year. Looking ahead, affluent Australians are also interesting in pursuing experiential luxuries such as enjoying gourmet food and fine dining (52 percent), a night out at a concert (51 percent), and a bottle of wine (47 percent). This list also includes donations to charity (37 percent), which falls higher in importance over discretionary spending on personal goods.
Vipin Kalra, Australian Country Manager at Visa, said: “The Visa Affluent Study suggests affluent Australians consider life luxuries to be time spent with their family. Instead of spending large sums on themselves, they spend most of their discretionary budget on family holidays, home entertainment system and furniture and interiors. It would seem they believe sharing a full life with their family is what matters most.”
Additionally, along with staying healthy (94 percent) and spending time with oneself and family (91 percent), providing their children with the best education is also at the top of the financial priority list – ranking as important – for more than half (73 percent) of affluent Australians, and is of greater importance to parents than buying a property.
Well-off Australians are more optimistic about their personal and household incomes in the coming year than they are about economic conditions, inflation and employment conditions. Seventy nine per cent rank growing their personal income as important, yet only a third (32 percent) are likely to increase their discretionary spends next year.
More than 80 percent of high net worth Australians likely to regularly save for their discretionary spends and they perceive affluence to be an insurance against life uncertainties. They spend six dollars of every $10 earned each month.
For more information on the Visa Affluent Study 2013, please visit www.visa.com.au/aboutvisa/research/affluent/affluent.shtml.