The Investor Index, now in its third year, is an annual survey of investor attitudes and behaviours we conduct alongside research and planning experts (and our good friends) The Nursery. It’s a yearly barometer on the thoughts, actions, feelings, and fears of advisers and a nationally representative sample of c1100 investors (with anything from £10,000 to £1m+ invested), both for the basics of financial confidence as well as reactions to developing market and world events.
This year’s report centres around the idea of “Constant Crisis: The New Stability.” In response to relentless crises, pandemic, war, commodity shortages and inflation, investors have found new ways to cope. A strong theme to emerge this year, is the continued polarisation of investors between the older and more established, and the younger ‘investors of tomorrow’. The gulf is ever-widening and shedding new light on younger investors, for many of whom living and investing through times of crisis is all they have known.
Our data shows that younger investors are showing great confidence despite a comparative lack of financial knowledge or experience. We are continuing to see a pattern of more breadth and variety, not just in asset types, but also income streams, attitudes to ‘retirement’, risk, ethical investment and sources of advice and inspiration.
These are people that don’t see ‘retirement’ or a finite end to work in their future; they see it as diversifying, entrepreneurship, and adjustment.
These are people putting progress over profit and taking a more holistic view of what it means to be an ethical investor; considering everything from investments that support cultural diversity and gender equality to LGBTQ+ causes and veganism.
These are people that reject the value of traditional advice in favour of asking a friend or family member their experience or seeking advice online from ‘finfluencers’ which are only growing in popularity and influence. This can make them vulnerable. Vulnerable to unregulated advice and asset types. Perhaps there is a duty of care, for providers and the industry as a whole, to educate and rein in these young and over-confident investors to some degree. But there is also a need for providers and advisers to make changes; to see the opportunity in the unmet needs of younger investors, to see their potential and meet them somewhere half-way.
These are people investing with more heart than ever before. Taking more risks in pursuit of the ‘better tomorrow’ we all say we want. Tomorrow’s investors are already here, it’s time we took notice.
To learn more, download the full report here!