Young investors more ‘astute’

Investors under 35 are much more likely to take a “handson” approach to their wealth compared to older generations, with “striking” differences between generations, a new survey published today has found.

The research, covering more than 1,000 UK savers and 500 high-net-worth individuals, was commissioned by Rathbone Investment Management. It found that 77 per cent of investors aged 18 to 34 have taken steps to protect their savings due to recent economic uncertainty, more than double the rate reported by those aged over 45.

Rathbone said rising inflation, low interest rates, and the ongoing Brexit talks have created increased economic uncertainty in the past year.

The study also said younger generations may be more involved in their own finances because a higher proportion have made their money themselves, rather than having inherited it.

The report said nearly a fifth ofthoseaged18to34hadmade their cash through owning and running – or subsequently selling – a business. This is compared with just 7 per cent among the over-45s.

Robert Szechenyi, investment director at Rathbones, said: “Younger generations – particularly millennials – have grown up during times of prolonged economic uncertainty, so it’s perhaps unsurprising that they are taking a handson approach to their finances.”

He continued: “Typically, it’s assumed that younger generations are less financially astute, but our research suggests the opposite.

“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.”