Luxembourg residents believe an annual gross income of at least €365,000, equivalent to €1,000 per day, is necessary to be considered “wealthy,” according to survey released on 4 July 2024. However, there is a wide gender gap in expectations: men respondents felt the threshold for wealth is even higher, at around €400,000 annually, while women perceive €300,000 as sufficient. Nearly half (48%) of the survey respondents had an annual income between €50,000 and €110,000.
Beyond monetary considerations, Luxembourg residents associate “wealth” more with health and freedom than with income levels. Specifically, 74% of respondents equated “being wealthy” with “having the freedom and flexibility to do as I please,” while 62% linked it to “being in good health and well-being.” Surprisingly, only a quarter of those surveyed directly associated wealth with “having a large amount of money in my bank account.”
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.”
According to the survey, 92% of Swissquote clients identified investing in financial markets as the most effective strategy for wealth accumulation. Meanwhile, two-thirds of all respondents acknowledged property investments as a viable wealth-building option, despite concerns over rising mortgage rates.
When it comes to life priorities, the survey revealed that most Luxembourg residents prioritise quality of life over career success. When asked to choose between a healthy work-life balance and a successful career, 80% of respondents opted for the former. However, respondents were evenly divided when faced with the choice between having more time or having more money.
Looking ahead, respondents identified inflation and international conflicts as the greatest threats to their wealth in the current year. A significant 58% expressed concerns about inflation eroding their personal wealth, while 54% feared that international conflicts could negatively impact their financial stability. Economic recession and higher interest rates also ranked prominently, particularly among respondents under the age of 42.