A new generation of Brits are trying their hand at investing as over half of (52%) millennials and Gen-Z (18-34-year-olds) take a stab at getting a return on their cash 鈥� more than any other age group, according to new research from听Forbes Advisor.
The study analysed Brits鈥� investment habits, revealing fewer than four in 10 (38%) of those aged 55-and-over invest despite being the wealthiest age group in the UK, and being nine times better off than the 30-34 age group.
The data reveals a shift away from the archetypal investor, suggesting investing isn鈥檛 the preserve of older, wealthier individuals with many years’ experience of financial markets. While many assume that investing requires large sums of cash, new data reveals that a quarter (25%) of Brits with an annual salary of less than 拢20k hold some type of investment, although this is still a lower rate than the general population (44%).
Looking at the reasons why Brits invest, priorities differ between age groups. For the wider population, future-proofing their finances is a priority, especially amid the cost-of-living crisis. Almost a quarter (23%) of Brits state that they invest to keep up with the exorbitant cost of living.
Additionally, among the top three reasons given, consumers are investing to boost their retirement fund (31%) and generate additional income (30%).
听Reasons Brits Choose to Invest听
|
Rank |
Reason For Investing |
Percentage Of Brits |
|
1 |
To boost my retirement fund |
31% |
|
2 |
To generate additional Income |
30% |
|
=3 |
To keep up with inflation/cost of living |
23% |
|
=3 |
So I can have an emergency pot |
23% |
More than a quarter (27%) of 18鈥�34-year-olds list generating additional income as their top reason, followed by keeping up with the cost of living (21%), and because they enjoy it (20%).
When it comes to how the public are investing, 22% are funnelling cash into stocks and shares ISAs, making it the most popular investment type in the UK.
More from News
- Experts Comment: Is Britain’s Reliance On Foreign Technology Becoming A National Security Risk?
- Full Fibre Adoption Continues To Accelerate Across The UK
- OpenAI, Anthropic And Google Are Discreetly Building Their Own AI Standards Body 鈥� What Would That Actually Decide?
- How Have Digital Nomads Created A New Market For Businesses?
- England鈥檚 New Tourist Tax Has No National Cap 鈥� What Does That Mean For Hospitality Businesses?
- The EU Cyber Resilience Act Starts Today: Can Businesses Really Report A Cyberattack In 24 Hours?
- Can Binge-Watching Be Addictive By Design? Inside The State Lawsuit Against Netflix
- Could Australia鈥檚 Proposed Algorithm Rule Break The Current Echo Chamber That Is Social Media Today?
However, cryptocurrency proved popular with the younger generation, with 17% of 18-34-year-olds holding the virtual currency, almost twice the national average of 9%.
Brits鈥� Top Five Most Popular Types of Investment
|
Rank |
Type Of Investment |
Percentage Of Brits |
|
1 |
Stocks and shares ISAs |
22% |
|
2 |
General investment account |
14% |
|
3 |
Property |
11% |
|
4 |
Cryptocurrency |
9% |
|
5 |
Bonds and fixed-income securities |
8% |
According to the data, many UK residents are also investing with smaller pots of money, rather than tens of thousands, as a quarter (28%) of individuals own a portfolio worth less than 拢2,500.
Andrew Michael, investment expert atForbes Advisor commented: 鈥淣owadays, the technology contained in smartphones and trading apps offers private investors the levels of investment capability that were once the privileged domain of City dealing rooms.
鈥淏eing more tech savvy than any other generation possibly explains why younger investors are to the fore in our data and have turned to investing in greater numbers compared with older age-groups.
鈥淲hether young or old, the need to future-proof one鈥檚 finances by boosting returns from market-based investments has become a priority for many, especially against the backdrop of a drawn-out cost-of-living crisis and stubbornly high inflation.
鈥淚t鈥檚 perhaps unsurprising, therefore, to see that Brits, even with relatively small amounts – as backed up by our findings – are looking to invest in the hope of achieving gains over the longer term.鈥�
Forbes Advisor听hosts useful investment guides on a range of topics, providing ideas and information on how to access the investment market, and which strategies and tactics can be deployed in pursuit of investment returns.
