Cost of maintaining ‘premium’ living standards rises by over 10%

The cost of maintaining a ‘premium’ standard of living has increased by 10.2 per cent in US dollar terms over the past 12 months, according to Julius Baer’s Global Wealth and Lifestyle Report 2026.

The report highlighted a complex and rapidly shifting global backdrop, with the past year defined by heightened geopolitical volatility, changing trade patterns, fluctuating exchange rates, and inflation concerns.

Although financial markets had remained ‘resilient’, these factors were having an impact on the cost of living well for high net worth individuals (HNWI) globally.

The data included in the report ended in late February and field work for the survey concluded in early March, therefore the impact of the ongoing situation in the Middle East has not been factored into the findings.

While the cost of ‘premium’ living standards rose by 10.2 per cent, Julius Baer noted that this figure only told part of the story.

Much of the increase was not solely the result of price inflation, but sharp currency movements meant that cities linked to appreciating currencies, especially the Swiss franc and the euro, rose in the rankings, while those aligned more closely with the US dollar fell.

“Currency, once again, is at the forefront – but it is the interaction between currencies, assets, and behaviour that defines the real story,” commented Julius Baer head of research, Christian Gattiker.

Singapore remained the most expensive city for HNWIs for the fourth year in a row, followed by Zurich which rose three places to become the second most expensive country in the index.

Monaco entered the top three for the first time, while Hong Kong fell once place to fourth.

London fell from second in 2025 to fifth in 2026, as the British pound followed a similar trajectory to the US dollar.

This limited the city’s relative increase in premium cost of living compared to mainland European locations, the report noted.

For the first time in three years, no city in the Americas appeared in the global top 10 list.

Geopolitical uncertainty was found to be a near-universal concern, with between 82 per cent and 95 per cent of HNWIs across all regions citing it as a worry.

This was influencing how HNWIs spend, plan and invest, the report noted, with affluent individuals adapting their consumption behaviour in response to tariffs, currency movements, and global uncertainty.

The vast majority of HNWIs had modified their portfolios in response to rising macroeconomic and political risks, Julius Baer found.

Although traditional assets remained the foundation of portfolios, HNWIs were found to be increasingly moving towards defensive strategies, including precious metals, geographic diversification, and higher liquidity.

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