During the pandemic, many people have been able to significantly increase their investment contributions, as spending on travel, leisure and hospitality plummeted.
Now, a poll* has revealed that’s far from reducing their investment contributions as restrictions loosen, 76% of UK investors intend to keep up their lockdown habits, with half planning on reducing everyday spending in order to continue investing the same amount or more.
On average, investors plan to contribute 19% more each month post-lockdown, increasing to 36% for younger generations. By contrast, just 6% plan to reduce their contributions.
The pandemic spawned a new generation of investors, but it was easy to assume it was just a temporary craze spurred on by lockdown boredom. These findings suggest otherwise and show a permanent change in the UK’s attitude towards spending, saving and investing. The rise in investing makes particular sense when set against a backdrop of rock-bottom interest rates.
Get started on your investment journey
While it is never guaranteed, investments have historically delivered better returns than savings over the long term. For assistance in building a diversified portfolio aligned to your risk profile, please do get in touch.
We are experienced and independent financial advisors (IFA) based in Eastbourne, East Sussex. We are often visiting clients in East Sussex and Kent, including Hastings, Bexhill, Uckfield, Brighton, Tunbridge Wells and further afield. We offer advice on Investments and Portfolios – please get in touch for a free initial investment review.
Read more financial advice in our blog.
Please read our VoucherFor reviews here.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
*Barclays Smart Investor, 2021
