Younger generations have a “much greater appetite” for investing compared to their parents’ generation, research from Stratiphy has revealed.
The research, which surveyed 2,000 UK adults, found that almost half (47 per cent) of 18 to 34 year olds have invested in the past 12 months.
Faced with a growing cost of living crisis and a widening advice gap, it is vital that younger investors have access to simple wealth management tools
This is compared to just 23 per cent of over 55s.
It also pointed out that 29 per cent of younger people said they have no plans to invest in the next year, compared to 66 per cent of those over the age of 55.
Stratiphy CEO and founder, Daniel Gold, said: “Millions of young people are shunning poor value cash savings in favour of investing in order to beat inflation and secure higher returns.
“Whilst their parents may be more risk averse as they approach retirement and favour cash savings over potentially superior yields from investments, Gen Z and millennials have time on their side to ride out market fluctuations and a strong appetite to maximise their future returns.”
Additionally, Stratiphy’s research found that younger investors are more reluctant to save in cash than their more elderly counterparts due to a desire for higher returns.
It found that 56 per cent of 18 to 34 year olds said they’re more comfortable saving in cash rather than investing, compared 68 per cent of over 55s.
Younger people (55 per cent) are also more likely to describe saving in cash as “risky”, compared to just 33 per cent of people aged over 55.
However, despite this strong appetite to invest, the research found that many younger people are concerned about whether they have the financial knowledge to do so.
Stratiphy reported that 56 per cent of 18 to 34 year olds said they don’t think they have a strong enough financial understanding to manage their own investments, compared to 46 per cent of over 55s.
Almost six in 10 (56 per cent) investors aged 18 to 34 said they’ve previously actively managed their investment portfolio but lacked the insight to make informed decisions, compared to 27 per cent of investors aged over 55.
Gold added: “Faced with a growing cost of living crisis and a widening advice gap, it is vital that younger investors have access to simple wealth management tools that offer the personalisation and insights needed to empower them to take control over their portfolios and future wealth.”
tom.dunstan@ft.com
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