Does How You Invest Reflect Your Generation?

The way we view our savings and investment reflects when we were born, to a remarkable degree.

Those aged 51 to 70 (Baby-Boomers), for instance, are more likely to feel that they have been particularly lucky with their cash. This generation saved hard for the future, and relied less on loans and credit card borrowing. They’ve also lived through periods of very high interest rates – the Bank of England base rate reached 14.875% in October 1989. They understand that economic performance can be cyclical.

They are likely to have a high proportion of their investment money in the stock market, and put their trust in fund management. Not surprisingly, one of their biggest concerns is low interest rates. Overall, they remain relatively optimistic about the economy.

The Fears of the Young

At the other end of the age range, Millennials are more likely to see the UK’s departure from the EU as a major risk to their investment prospects. By contrast, Generation X, who in age fit between Baby-Boomers and Millennials, see low interest rates as a positive force for good, making mortgages and loans more affordable.

Portfolio Management

The under-35s are likely to spend considerable time online researching alternatives and consulting multiple sources before making major investment decisions. They also check up on their portfolio more often. Baby-Boomers tend
to feel more able to dabble in shares in markets at home and abroad, while those aged over 70, the so called ‘silent generation’, are also likely to have 80% of their invested money in the stock market.

Changing Goals

Whatever your current age, it’s highly likely that your investment goals will change over the years as you go through different stages of your life. No matter what age you are it is vitally important to keep a close eye on your investments and review them regularly.

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.