However, the cost-of-living crisis is resulting in more uncertainty among investors, research by Fundamental Media finds
UK end investors are becoming increasingly more self-reliant in their investment approach, especially younger people, but the cost-of-living crisis is causing more uncertainty around investing, research by Fundamental Media has found.
Slightly less than half (45%) of respondents is saving the same amount as 12 months ago, while 34% are saving less. However, in response to the current market environment of high inflation, the energy crisis and so on, more than a quarter of respondents are planning to increase their overall amount invested.
The above chart is a snapshot of data available in the UK end investors report. A more detailed breakdown, including by age and wealth bracket, is available in the full report
Another quarter of respondents is planning to make changes in the type of investment products they own to face the challenges of today. When asked what type of products they have changed or are considering changing, crypto, ESG, bonds and shares were most often mentioned.
For our 2022 European end investors report series, we surveyed 1,070 end investors in the UK, 1,089 end investors in Italy, 1163 end investors in Germany and 1068 end investors in France.
Overall confidence in having enough savings when retiring decreased compared to 2018, with having too low an income being the main reason for not saving more. This is a stark difference from 2018, when not wanting to sacrifice current spending was the main reason.
The above ranking is a snapshot of data available in the UK end investors report. A more detailed breakdown, including by age and wealth bracket, is available in the full report
End investors use multiple sources and channels to help them choose and buy their investments with their social network and online tools becoming more popular. The increased self-reliance of investors is particularly clear among younger investors who are more likely to have chosen their existing investments by following advice from a friend, family or colleague, by listening to financial podcasts or through blogs or social media posts. In the UK, the use of online investment platforms is the highest of all markets surveyed, with 88% using them, especially investors younger than 54.
Although professional advisors are still a key source, especially for older and wealthier respondents, their use decreased compared to 2018. Those using advisers value their expertise, while those not using an adviser were mostly put off by their cost. The most important factors when selecting investments were steady returns and security, while ease of use was the most important when investing online.
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