Swissquote Survey Reveals How Luxembourg Residents Perceive Wealth

On Thursday 4 July 2024, Swissquote Bank Europe presented the results of the inaugural edition of its Luxembourg Wealth Survey.

Commissioned in partnership with ILRES, this survey provides insights into how residents of Luxembourg define and perceive wealth in today's world.

The survey revealed that residents believe they must earn an annual gross income of at least €365,000 to consider themselves wealthy. For perspective, that is more than four times the median annual salary of an individual living in Niederanven, Luxembourg's richest municipality (according to STATEC). Men believe you need to take home even more money - approximately €400,000 in gross income a year; women put the figure closer to €300,000.

While income matters, a majority of Luxembourg residents believe health and freedom are a better measure of wealth than how much you earn, according to Swissquote. 74% of respondents associated wealth with having the freedom and flexibility to do what they want. A further 62% of people surveyed linked wealth to good health and well-being. Meanwhile, only a quarter of respondents associated wealth with money or financial assets.

Jeremy Lauret, Head of Direct Investing at Swissquote Bank Europe, commented: "Luxembourg is Europe's wealthiest nation measured by GDP per capita, and a significant financial hub. Yet little is known about how everyday Luxembourg residents perceive wealth and make decisions that impact their financial position. For many, discussing wealth remains a taboo subject. Our wealth survey challenges established notions of wealth by gathering insights and opinions directly from Luxembourg residents."

The survey also asked respondents to assess their own financial position. Swissquote clients were almost three times more likely than other respondents to feel wealthier compared to last year.

"Swissquote clients are more likely to invest in financial markets and have therefore benefited from the strong performance of equities - both in capital appreciation and dividends," Mr Lauret said. Indeed, 92% of Swissquote clients surveyed said investing in financial markets was the most effective way to grow their wealth. Two-thirds of all respondents also viewed buying property as effective wealth generator despite rising mortgage rates.

Other key findings from the survey include:

- Quality of life taking priority over career: according to the survey, most Luxembourg residents prioritise their quality of life over their career. Asked to choose between having a healthy work-life balance and having a successful career, 80% of respondents said they prioritise a good work-life balance. However, respondents were evenly split when faced with the choice of having more time or having more money.

- Inflation and international conflict the greatest perceived threats to wealth: when asked to list the biggest threats to their wealth this year, 58% of respondents said they view inflation as a major obstacle to protecting their personal wealth. A further 54% of respondents said they were concerned conflict abroad could negatively affect their finances. Economic recession and higher interest rates also ranked high among responses, particularly among respondents under the age of 42.

The study, conducted in partnership with Luxembourg-based market research firm ILRES, is based on interviews with 1,641 Luxembourg residents between 15 and 30 April 2024. Both ILRES panellists and Swissquote clients participated in the survey.