Gen Z are nearly thrice as prone to make investments as boomers – regardless of having far much less cash

The young may have a fraction of their wealth but are almost three times as likely to invest as baby boomers.

A study claims that 47 per cent of Generation Z adults actively invested outside of their workplace pension over the past twelve months, while 46 per cent of millennials did the same.

That compares to just 17 per cent of the boomer generation, according to data shared with This is Money by investing app Moneybox.

This is despite figures from from the Office for National Statistics indicating that baby boomers are on average 33 times more wealthy than Generation Z.  

Among Generaton X, 27 per cent of people were investors. On average across all ages 32 per cent of the population actively invest, the survey of 2,000 people showed.

But some may argue with the definition of investing as qualifying investments included crypto, which is very higher risk and is criticised in some quarters as being more akin to gambling.

Younger investors are likely to disagree with that view though, as Moneybox said 18 per cent of Gen Z hold cryptocurrency, with many owning other investments alongside it. 

The younger generation has less wealth but is more confident in the idea of investing it 

The report comes as the Government steps up its push to get more people investing. Chancellor Rachel Reeves says she wants to do this to improve returns for savers and provide a boost to the UK stock market.

In her last Budget, the Chancellor cut the cash Isa allowance from £20,000 to £12,000 from April 2027, for savers under the age of 65. The government is also backing a public education campaign to get more people investing, alongside investment firms.

Younger people can benefit the most from investing, as they have longer time horizons available to them.

Historic data demonstrates that investing returns are likely to beat cash saving over the long term, as investment portfolios benefit significantly from long-term growth and the effect of compounding.

Figures running all the way back to 1899 in the UBS Global Investment Returns Yearbook highlight this. Investing in the UK stock market delivered an annual average real return (above inflation) of 5.4 per cent over 125 years compared to an average of 1 per cent for cash.

> Work out compounded returns with our saving and investing calculator

Brian Byrnes, director of personal finance at Moneybox, said: ‘For the second year running, our data shows younger investors are leading the charge when it comes to building investing confidence and long-term wealth. What’s most encouraging is that this confidence is being built through experience.

‘Many people can feel like they need to have everything perfectly in place before they start investing, but our data shows confidence often comes after those first steps are taken.

‘Starting small, learning as you go, and seeing gradual progress can make investing feel more familiar and less intimidating over time.’

People ARE keener to invest

The survey suggests that people are already becoming more likely to invest their money, with 65 per cent saying they felt more confident in doing so in 2025 compared with the year prior.

Strong stock market returns will have helped them along the way. 

The UK’s leading stock market index, the FTSE 100, delivered a total return of almost 25 per cent last year, while the US S&P 500 returned 18 per cent.

Some 83 per cent of Gen Z – rising from 80 per cent a year ago – and 81 per cent of millennials said this was the case.

This confidence stems from investors saying they feel more informed about what options are open to them, with 37 per cent of Gen Z and 54 per cent of millennials saying they understand different investment products.

Young investors felt more confident due to returns on past investments and said they felt on track to meet their long-term goals and see their overall financial situation improve.

As a result, a quarter of Gen Z and almost a third of millennials say they plan to invest more in 2026.

Alongside this, 16 per cent of Gen Z plan to make regular investments, while 22 per cent of millennials said the same.

Byrnes said: ‘The real challenge is ensuring people have the knowledge, tools and support to take those first steps and unlock their financial potential. That’s why it’s so important we continue building on this momentum in 2026 by making investing easier, more accessible, and less intimidating.

‘Crucially, this also means bringing more people along the journey from saving to investing through the right guidance and support that demonstrates the real benefits of investing in their future outcomes.

‘Initiatives like the Government’s upcoming retail investing campaign and rollout of Targeted Support will play an important role in making that happen – ensuring people have the ability to build long-term wealth with greater confidence.’