A report by Moneybox has revealed the number of 18-24 year olds investing has grown year-on-year, as more Brits look to grow their money and secure their financial future
The number of Gen Z investors has seen a significant increase, almost doubling year-on-year, as more young adults are turning to investments to grow their wealth and secure their future.
A survey of 2,000 adults revealed a 23% rise in the number of 18-24 year olds investing in 2024 compared to the previous year.
The study conducted by Moneybox found that 41% are aiming for a comfortable retirement, while 37% are investing to achieve long-term financial goals faster.
Millennials are also increasingly turning to investments, with 45% opting for alternatives to cash savings in 2024, marking a 13% increase year-on-year.
Confidence in investing is on the rise across all age groups, with 75% of Gen Z and 87% of Millennials feeling more optimistic about it.
Furthermore, apps and online banking has made investing more accessible and user-friendly for the younger generations.
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Whether it’s through Stocks & Shares ISAs, cryptocurrency, collectibles, or equity crowdfunding, the research indicates that Brits are now allocating an average of 17% of their income towards savings or investments, which increases to 23% for those under 35.
However, affordability remains a barrier for a third of non-investors and others are concerned about risk or lack confidence.
Brian Byrnes, head of personal finance at Moneybox, urges those with a rainy day fund to start investing now, emphasising the long-term benefits of compound returns, even from small contributions.
He shares his top tips for those planning to invest more in 2025:
1. Establish clear investment objectives and automate contributions:
Identify your short, medium, and long-term financial aspirations, such as purchasing a property, early retirement, or wealth accumulation. For each goal, set a target sum and timeframe.
Utilise budgeting tools or apps to monitor your progress and automate your investment contributions. Even automating modest monthly investments can help maintain consistency and benefit from compound growth over time.
2. Boost financial confidence through manageable learning steps:
Allocate at least half an hour each week to financial education. Select a subject like the basics of investing, stock market trends, or tax-efficient investing.
Use resources like podcasts, YouTube channels, or online forums to expand your knowledge in a straightforward, digestible manner. The more you learn, the more confident you’ll become in making investment choices.
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3. Begin with small, low-cost, diversified investments:
If you’re new to investing, consider low-risk options such as index funds, ETFs, or tracker funds that reflect market performance. These offer inherent diversification, minimising risk while providing long-term growth potential.
Consider pound-cost averaging – investing a fixed sum regularly – to even out market volatility and eliminate emotional decision-making.
4. Maximise tax-efficient investment accounts:
Take advantage of ISAs and LISAs to protect your savings and investments from taxes. If you’re aiming for home ownership, consider a Help to Buy ISA or Lifetime ISA to enhance your savings with government bonuses.
For those looking towards retirement, a Lifetime ISA could be just the ticket, offering a 25% government bonus on contributions. If building long-term wealth is your goal, Stocks & Shares ISAs allow your investments to grow tax-free.
Using tax wrappers can significantly accelerate your financial growth.
5. Talk about money and advocate your worth:
Don’t hesitate to discuss money, whether it’s with friends, colleagues, or finance professionals. Many of us are reluctant when it comes to negotiating salaries, but remember, earning more means having more to invest for the future.
Research industry pay rates, prepare your case, and don’t be afraid to ask for a raise or adjust your rates if you’re self-employed. Increasing your income today means you can invest more for tomorrow.