Global cost of luxury eases as health, longevity, and financial planning reshape high-net-worth priorities
In a year marked by global uncertainty, economic headwinds, and shifting consumer preferences, the 2025 Julius Baer Lifestyle Index reveals a subtle but meaningful shift in the world of high-net-worth individuals (HNWIs).
For the first time in several years, the overall cost of maintaining a luxury lifestyle has fallen – down 2% in US dollar terms – largely driven by declining technology prices across all regions.
Despite the changing dynamics, the index’s top three cities remain unchanged, though the rankings have shuffled. Singapore retains its status as the most expensive city for HNWIs, followed by London, which overtook Hong Kong to claim the second spot.
The index, which analyses the cost of 20 high-end goods and services in 25 global cities, serves as a barometer of global affluence and regional economic performance.
While the tech sector saw price drops that eased overall costs, not all categories followed suit. Business class flights and international school fees have seen sharp increases, underlining continued inflationary pressure in premium travel and education – two major spending areas for the global elite.
The Julius Baer Lifestyle Index includes a broad range of items, from luxury watches and fine wines to legal fees, MBAs, and real estate. It assigns more weight to high-cost items like property and vehicles, which heavily influence a city’s ranking.
Beyond material costs, the 2025 Index underscores a growing preoccupation among HNWIs with longevity and wellbeing. The post-pandemic health focus has only deepened, with 87% to 100% of respondents – depending on region – actively taking steps to extend their lifespan.
These range from diet and exercise to more radical approaches such as gene therapy and even cryogenic chambers, especially popular among respondents in Asia-Pacific and Latin America.
With the pursuit of long life comes the challenge of financial sustainability. HNWIs are increasingly reassessing their wealth strategies to ensure their portfolios can support longer lifespans.
According to the survey, the majority reported growth in asset values over the past year, but many acknowledged they would need to adjust investment and succession plans if they were to live 10 years longer than anticipated.
It’s worth noting that this year’s data was collected prior to the U.S. administration’s announcement of new tariffs – meaning the full impact of recent economic disruptions has yet to be reflected. This suggests that further volatility may affect luxury pricing and consumer confidence in months to come.
Still, the 2025 Julius Baer Lifestyle Index offers a snapshot of a world where luxury is no longer just about spending, but about strategic living – with health, wealth, and longevity now the defining pillars of high-net-worth lifestyles.
