Investor sentiment has split by age over the last six months, with young people’s confidence in investment increasing significantly as the older generation remains sceptical.
While the desire to save and invest has jumped by double digits among 18-34 year olds, those aged 35-54 have increased by just a few percent, while for the oldest generations, confidence is disappearing fast.
The shift in generational views was revealed by Abrdn’s bi-annual Saving Ladder Index, which found that overall propensity to save had increased three per cent and propensity to invest had increased eight per cent since May.
Meanwhile, the average UK adult’s economic outlook has increased by 13 per cent and is now above average.
However, the overall average of the three measures still sits at 49/100, though this is a nine per cent increase since May.
Confidence also increased in people’s confidence in their own financial situation (16 per cent), the performance of the UK stock market (27 per cent) and the performance of the UK economy overall (12 per cent).
While the percentage increases showed a big leap, only 19 per cent of all people still saw they are confident about the performance of the UK economy overall.
The news comes ahead of next week’s Autumn Budget, which could see an overhaul in measures that push the British public to save and invest.
Abrdn has made a variety of policy suggestions to the government to increase saving, such as scrapping stamp duty on UK shares, simplifying the ISA system, and pushing financial education in schools.
It’s hugely positive to see growing appetite for saving and investing, particularly amongst younger investors. This is a crucial step in shoring up people’s long-term financial resilience,” said Sarah Moody, chief corporate affairs and sustainability officer at Abrdn.
“But nor should we leave behind those who have carefully saved and invested over many years. We must now cultivate these green shoots of progress into a national culture of saving and investing for the long-term.”
We urge the Government to use the Budget as an opportunity to continue building on this positive trend rather than dampening nascent appetite for saving and investing by eroding the benefits of doing so.”