The rise of young investors has emerged as one of the most exciting developments in UK investing in recent years. In 2024, 38% of 18-25-year-olds reported holding investments, the highest proportion across age groups. Most invest modest amounts (often less than £10,000 in total and sometimes far less than this), but their growing participation marks a promising trend for the future.
Neo-brokers like Trading 212 and Freetrade have combined accessibility with affordability to capture tech-savvy young adults’ attention. Such services are perhaps partially responsible for improving awareness of certain types of investments: younger investors claim they are more familiar than older groups with such investments as ETFs, direct bonds and cryptocurrencies. Over a quarter of 18-45-year-olds claim to be completely familiar with cryptocurrencies (versus just 4% of those aged 46+).
Yet confidence may well exceed expertise – many younger people say they would like guidance on how to invest.
Younger investors present an opportunity to the investment industry, even if they are currently lacking serious investment assets. We shouldn’t forget that many will have squirreled away six-figure sums by their mid-to-late-thirties thanks to workplace pensions and the shift from DB to DC. Even if their portfolios are mostly small for now, their enthusiasm is evident and their potential is vast. Investment product and service providers should consider their brand recognition amongst this age group – it could be of great consequence down the track.
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