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 BabyBoomers and Millennials, see low interest rates as a positive force for good, making mortgages and loans more affordable.
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.
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.