Britain’s millennial generation, those born since 1981, have suffered a bigger reversal in financial fortunes
than their Baby Boomer counterparts over the past few years than ever before.* In the Baby Boomer heyday, full
employment seemed to put more than enough money in everyone’s pockets, and decades of soaring house
prices, economic growth and final salary pensions means that 20% of over 65s have become millionaires
thanks to their nearly doubling wealth.**
However, younger workers have only seen a modest increase, only becoming 9% better-off.** Naturally because
of these dramatic changes, millennials relationship with money and investing has been fraught, but what is the
difference in attitudes between these generations? Has the recent pandemic made them start to look at investing
It does seem that this tide is slightly turning. In wake of the initial coronavirus market crash in March, it seems that the
younger generations are embracing the idea of investing more than their elder counterparts.***
Cash has been replaced by Stocks & Shares ISAs as saving rates continue to be catastrophic, but it seems that under
25s and 25-34 year olds seem to be subscribing more and more. This compares to 60% of baby boomers who would
feel comfortable to invest.*** However, across all ages, investors seem to be split on whether the coronavirus and
subsequent market crash, offers a good opportunity to invest or not.
Millennials with the gift of time on your side, can see it more as an opportunity to invest in cheaper shares; are
able to ride the market out until it rises again. For baby boomers, this is not always an available option.
Traditional places for saving money may no longer provide a service as effective as they once did. The
historically low interest rates could be forcing young people to look elsewhere and make the most of the time
available to grow any wealth.
The market could be responding to this by becoming more accessible through easy-to-use apps and trading
platform. 19% of millennials believe that these points are part of the reason for increased interest*** as well as
helping to build knowledge around the subject with easy access educational content.
Products such as an ISA from i-stock are following in these footsteps and hoping to bring a new opportunity to
the investment world. It has the flexibility to put aside small amounts of money regularly, or just when you feel
more comfortable to do so. The pandemic has also drawn attention to sustainable investments, something that millennials are keen to get on
board with. 8 in 10 individual investors are interested in sustainable investing among millennials, and from those
figures, 95% were interested and two thirds were actively investing in sustainable products.****
Despite the outbreak forcing a market crash, investments focusing on companies with strong environmental, social,
and corporate governance (ESG) principles, outperformed their conventional counterparts in 2020’s first quarter.
The underlying principles of ESG focused companies, placing customers and workers well-being at the centre
of their decisions could be part of the appeal in these troubling times. This approach makes sense to appeal to
millennials who have already experienced two huge economic downturns.
Changes in the economic climate could have a big effect on millennials and their view to investing, but hopefully
this progression in investment interest will continue as a new generation to get stuck in to saving for tomorrow.