The 14th annual report on the UK's High Net Worth sector has found the sector is "broadly optimistic" about its short and medium term prospects.
The report by consulting firm MDRC found there are over 500,000 people in the UK with investable assets of more than £500,000. This was two per cent higher than 2012 but still down from 2011.
The average age of a HNW individual was 59 years old, 32 per cent no longer worked and 41 per cent lived in London where they held 70 per cent of the UK's investable assets.
Responses from individuals suggest the sector is set for "two or three years of modest growth" but will not return to pre-2008 growth rates in the near term.
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Regarding wealth management, the HNW individual was described as being "increasingly confident, financially aware but becoming less risk averse than in recent years."
They did not wish to be involved with the management of their assets but did wish to understand the investments that were being managed on their behalf.
However, HNW individuals remained time-constrained and keen to protect their lifestyle. They were prepared to consume assets to ensure a comfortable lifestyle and less concerned about passing wealth onto succeeding generations.
The report also dismissed the service of private client banks and private client wealth managers, saying they "fail to attract the target market".

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