The Cost of Living Well Rises: Key Insights from Julius Baer’s 2026 Wealth Report

The meaning of wealth is changing. For high-net-worth individuals (HNWIs), maintaining a premium lifestyle in 2026 is becoming increasingly influenced not only by income and assets, but also by currency movements, geopolitical uncertainty, investment diversification, health, mobility and global purchasing power.

The latest Julius Baer Global Wealth and Lifestyle Report 2026 offers a detailed look at these changes, examining the cost of maintaining a premium lifestyle across 25 cities and surveying affluent individuals across major regions including Asia Pacific, Europe, the Middle East, North America and Latin America.

One of the report's most notable findings is that the cost of maintaining a premium standard of living increased by 10.2% on average in US dollar terms over the past year. But there is more behind that number than inflation.

Currency Is Reshaping the Global Cost of Wealth

Currency movements have emerged as one of the defining forces behind this year's results.

The Swiss franc and euro strengthened against the US dollar, pushing several European cities higher in the global ranking. This demonstrates how the cost of living for globally mobile wealthy individuals can change significantly depending on where their wealth is held, where they live and which currencies they use.

For internationally mobile families, currency is therefore becoming more than a financial-market consideration. It directly affects purchasing power, property costs, travel, education, luxury purchases and long-term financial planning. Christian Gattiker, Head of Research at Julius Baer, highlighted the interaction between currencies, assets and behaviour as a central theme of this year's findings.

Singapore Remains the World's Most Expensive City for HNWIs

Singapore continues to hold the number-one position in the Julius Baer Lifestyle Index, making it the world's most expensive city for maintaining a premium lifestyle for the fourth consecutive year. High residential property and automobile costs, combined with the strength of the Singapore dollar, contributed to its position.

The city's broader appeal also remains strong. Political stability, economic resilience and international connectivity continue to make Singapore an important hub for globally mobile wealth. The Asia-Pacific region remains particularly significant, with five cities appearing in the global top ten: Singapore, Hong Kong, Shanghai, Sydney and Bangkok.

Sydney Makes One of the Biggest Moves

Australia's Sydney recorded the largest rise in the global ranking, climbing six places to eighth.

The movement was driven partly by the strength of the Australian dollar and the high cost of imported premium goods. Despite the increase, average lifestyle prices across Asia Pacific rose by 7.4% in US dollar terms, below the global average of 10.2%. The result reinforces an important point for affluent consumers: a city's position in a global cost ranking is influenced not only by local prices, but also by currency performance.

Europe Becomes More Expensive

European cities experienced some of the strongest increases in the 2026 index. Prices across European cities increased by an average of 14.1% in US dollar terms, significantly above the global average.

Zurich climbed three places to become the world's second-most-expensive city, while Monaco entered the top three for the first time. Paris, Milan and Frankfurt also moved higher. London, meanwhile, dropped to fifth place.

The difference highlights how currency appreciation can influence the global perception of affordability even when local price increases are relatively moderate.

Luxury Is Getting More Expensive

The luxury economy is also experiencing significant price pressure.

According to the report, luxury goods prices increased by an average of 12.3%. Jewellery prices rose by 16.4%, while watches increased by 15.5%. One contributing factor is the dramatic increase in the price of gold, which has more than doubled since 2024. Higher raw-material costs, skilled labour expenses and pricing strategies from luxury brands are contributing to the increase. For affluent consumers, this means that luxury spending is becoming increasingly sensitive to both commodity prices and currency movements.

Experiences Continue to Define Modern Luxury

Yet the report suggests that wealth is not simply about buying more expensive products.

Experiences remain central to affluent lifestyles. Luxury hospitality, premium dining and leisure travel continue to attract strong demand across regions. At the same time, spending on health-related services has increased significantly. The combination points toward a broader transformation in how wealthy individuals define luxury.

Wellbeing, longevity, experiences and quality of life are increasingly becoming part of the wealth equation.

In other words, the definition of "living well" is becoming more holistic.

Geopolitical Uncertainty Is Changing Behaviour

The 2026 report also highlights the growing influence of geopolitical uncertainty. Between 82% and 95% of respondents across the regions surveyed said they were concerned or very concerned about geopolitical developments. That uncertainty is influencing both consumption and investment decisions.

At least one-third of respondents have already changed the geographic origin of some luxury purchases, while more than half said they would consider travelling internationally to purchase luxury goods and avoid tariffs. Around one-quarter are already doing so. This illustrates how global wealth is becoming increasingly mobile and adaptive.

HNWIs Are Rethinking Their Investment Strategies

The changes extend beyond lifestyle spending. The vast majority of surveyed HNWIs have modified their portfolios in response to increased macroeconomic and political risks. Traditional assets remain important, but investors are increasingly considering defensive strategies such as precious metals, greater geographic diversification and higher liquidity. The Asia-Pacific region stands out for its adaptive approach.

According to Julius Baer, 73% of APAC respondents increased diversification, while 53% added more precious metals and 46% increased geographic diversification. This suggests that affluent investors in the region are responding to uncertainty not simply by becoming more conservative, but by building portfolios designed to withstand a wider range of global scenarios.

Health Is Becoming Part of Wealth

Another major theme of the report is the increasing importance of health. Health-related spending was one of only two categories to increase across every region surveyed, alongside leisure travel.

This reflects the continuing rise of the "health is wealth" mindset. For affluent individuals, wealth management is increasingly connected to longevity, wellbeing and the ability to maintain a high quality of life over a longer period. The trend also has implications for businesses. Luxury wellness, healthcare, longevity services, premium fitness, medical innovation and personalised wellbeing could all benefit from this evolving definition of wealth.

Asia Pacific Continues to Stand Out

Asia Pacific remains one of the most important regions in the global wealth landscape.

Five APAC cities are now among the ten most expensive cities in the Julius Baer index, while affluent consumers in the region are showing strong spending and investment activity. The report describes a pronounced "two-speed luxury economy," with spending in APAC and the Middle East significantly outperforming Europe, North America and Latin America. Europe recorded the highest levels of spending contraction. For businesses targeting affluent consumers, this creates opportunities in areas ranging from luxury retail and hospitality to investment services, technology, healthcare and premium experiences.

What the 2026 Report Means for the Future of Wealth

Perhaps the most important takeaway from Julius Baer's latest research is that wealth is becoming increasingly multidimensional. Financial assets remain fundamental, but today's affluent individuals are also thinking about where they live, how they spend, how they protect their wealth, how they maintain their health and how they prepare for an uncertain global environment. Currency movements can change the relative cost of a city. Geopolitical events can influence investment allocations. Technology can reshape wealth management. Health and longevity can influence spending priorities. The traditional definition of wealth is therefore expanding.

A New Definition of Living Well

The Julius Baer Global Wealth and Lifestyle Report 2026 provides a snapshot of a world where wealth is increasingly global, mobile and strategic. Singapore's continued position at the top of the lifestyle index, Europe's rising costs, Sydney's rapid climb and the strong adaptive behaviour of APAC investors all point toward the same conclusion: where and how people live matters almost as much as how much wealth they hold. As global uncertainty continues, affluent individuals are becoming more deliberate about protecting purchasing power, diversifying investments and spending on experiences and wellbeing.

For businesses and investors, understanding these behavioural changes could be just as important as understanding traditional economic indicators. Because in 2026, the real measure of wealth may no longer be simply what you own — but how resilient, mobile and future-ready your wealth can be.

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