Older generations more hands off with investments | moneyfacts.co.uk
MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


Lieke Braadbaart

Online Writer
Published: 13/12/2017

Given the ongoing economic uncertainty, it's worrying news that only 36% of investors who are over 45 years old have taken steps to protect or safeguard their savings. In contrast, 77% of those aged between 18 and 34 have done so, according to research commissioned by Rathbones.

Protecting your wealth

Due to a combination of rising inflation, historically low interest rates and the wider economic situation, it's likely that people's savings are feeling the pinch. That's why 17% of 18-34 year olds have diversified their portfolio, while 22% have personally reviewed their savings and investments.

Diversifying could mean putting more of your savings in fixed term bonds, or simply changing the funds that for instance your stocks & shares ISA is invested in. This sounds simple, yet only 10% of those over 45 have diversified their portfolio in the last year, while just 9% have reviewed their finances.

Now, you may be thinking that this is simply due to most over-45s having professionals in charge of their finances, whose job it is to keep an eye on the market. However, Robert Szechenyi, Investment director at Rathbones, explains: "Younger generations – particularly millennials – have grown up during times of prolonged economic uncertainty, so it's perhaps unsurprising that they are taking a hands-on approach to their finances. This strongly contrasts with that of older generations, who are by most accounts taking a much more passive approach to the current politically and economically volatile climate."

Investing with a difference

Aside from keeping a closer eye on their money, younger generations are also more likely to think about the impact of their investments. Indeed, 20% of 18-34 year olds believe social impact investing is one of the best ways to use your money for good, compared to just 8% of over-45s.

Robert concluded: "Higher inflation and the current economic uncertainty over Brexit mean that investors should be taking steps to ensure their portfolio can weather any storm as well as possible. A large part of this will be making sure that portfolios are well diversified."

Indeed, it's always a good idea to check in every once in a while, regardless of where your funds are invested – it's your money at stake, after all. So, if you've got a large amount of money at risk on the stock market, consider putting some into a fixed rate bond or ISA instead. Any type of ISA, cash or stocks & shares, may be a good idea given their tax-exempt status.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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