Bankers appear optimistic that fair job market conditions will continue: nearly a third plan to blow their bonus.
In a survey, 46 out of 100 bankers told Heartwood Wealth Management, a UK private bank, that they plan to spend their bonus in its entirety. A mere 20% revealed any intention of putting money into a pension.
Of those who are revving up to go on a spending spree, 38% said they were prudently putting their hard-earned cash into property. The remainder have their sights set on holidays, cars, socialising and the tantalisingly opaque category of ‘other.’
One headhunter tells us the optimism may be misplaced. “The City is a brutal place to work, and people appear to be forgetting that. They’ve all been whipped into a frenzy over the fact that their bank has had a fantastic year and appear to be ignoring the signs that there may be tough times ahead.”
Bankers investing in property may also be overlooking the issue of French taxation. A separate study, by estate agent Pure International, suggests France is the top destination for bankers who intend to invest in a foreign property. But residents in France are obliged to pay an annual wealth tax. “Asset-rich bankers who retire to France could face a considerable annual tax on their global net assets,” says Nick Bacon, a tax partner at KPMG.