New research has shown that the younger generation is more likely to invest for the future post-Covid.
More than half (56%) of people aged between 18-30, say they are more likely to regularly add to their savings now than they were 12 months ago and feel more financially cautious in the wake of the pandemic, according to the findings from financial services provider OneFamily. Nearly two fifths (38%) said they were more likely to regularly invest money into stocks and shares-based investments.
It comes as young people were shown to be 50% more likely to have been furloughed and twice as likely to have been made redundant or looked for a second job in the past year compared to the general population.
On average, those aged under 30 who were able to save added £1,480 to their pot in the last 12 months. However, 9% have not had any money in savings in the past year, while a further 13% said they have saved less.
Looking ahead, around three in 10 of those planning to save more are doing so to put a deposit down on a home (30%), while one in six (16%) is looking to save for education and one in 10 (11%) want to save for a wedding.
Paul Bridgwater, head of investments, OneFamily, said: “It’s been a tough time for all of us, so it’s understandable that the generation that’s been hit hardest is now more cautious about spending and are determined to build their savings.
“With so much uncertainty, protecting against future risks like recessions, pandemics and employment comes up a lot in the under 30 age-group.
“But even with this pressure, many in this group don’t want their money to go into funds that support companies that damage the environment. The future of the planet is just as much of a priority too.”
Bridgwater added: “For many young people saving for a home, after living with parents or in a rented living space that they weren’t able to make their own in the past year, it’s worth them looking into whether the 25% government bonus on a climate friendly Lifetime ISA might help to boost their savings pot whilst also appealing to their environmental ideals.
“Meanwhile for those not looking to save specifically for property or retirement, a climate friendly stocks and shares ISA could help them to build their savings nest-egg at a time when interest rates are at a historically low level.”
