All respondents had already taken steps to provide for their
pets in the event of their own death (Exhibit 4). About half of all pet owners
had completed formal arrangements, such as writing instructions into a will,
including nearly 60 percent of the pet-focused crowd. About one-quarter of
owners had made informal deals, such as planning with family and friends. A
similar number of people say they have both formal and informal provisions to
secure long-term care for their pets.
Pet owners are increasingly turning to trust vehicles for their
critters (Exhibit 5). Of the 48 percent of respondents who had made formal
post-death arrangements, some 19 percent had already established a trust to care
for their pet. Not surprisingly, about three times as many pet-focused owners
had done so versus animal-focused owners.
Pet owners, however, seemed more concerned with making certain
that the caregivers will have ample means to look after their pets. The
approximately two-thirds who have formal arrangements attached assets to their
pet’s care, with nearly 80 percent of the pet-focused segment and more than half
of the animal-focused group doing so (Exhibit 6).
The amount of money pet owners identified was consistent with
their level of spending, with an average of $410,000 earmarked for pet care in
the event of the owner’s death (Exhibit 7). Pet-focused owners set aside
substantially more—some $526,000 on average.
Given the amount of wealth allocated for pet care and the
relatively short life span of many domesticated animals, it’s clear that many
pets will die before their funds have been used entirely on their care and
safekeeping. Pet owners’ directives for excess money best illustrate the biggest
differences between our two segments (Exhibit 8). Almost all (98 percent)
animal-focused pet owners—those with a broad interest in animal welfare—want
money intended for their pet’s care to go to an animal-related charity upon
their pet’s death. Conversely, most pet-focused owners choose to have the assets
pass to family or friends.
We can’t argue that prosperous pet owners love their animals
any more than individuals with less money, but the intensity of their emotions
appears exaggerated by the way they use their wealth to care for their
animals—and to prepare for their care in the future.
Russ Alan Prince is the president of Prince & Associates, a
market research and consulting firm for the affluent, and the author of more
than 35 books on related topics. Hannah Shaw Grove, an author and columnist, is
an expert on the behavior, concerns and finances of affluent
consumers.
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