Not just avocados! Millennials “out-investing” older generations
MILLENNIALS may be lambasted for spending too much of their money on luxuries or avocado toast, but research suggests this may not be the case.
A report by peer-to-peer business lender ArchOver found that millennials – those aged 18-34 – actually out-invest older generations.
The study, titled Next Gen: Investors and Savers, found 35 per cent of millennials are investing or savings more than £250 a month, compared with 26 per cent of generation X – those born in the mid-seventies and eighties – and 25 per cent of baby boomers, typically people born in the years following the Second World War.
Angus Dent, chief executive of ArchOver, suggested familiarity with technology and a desire for higher returns are the factors driving a preference for online investment platforms among younger generations.
The research among 2,000 adults found 59 per cent of millennials trust technology and use automated services to make financial decisions, compared with just 40 per cent of generation X and 24 per cent of baby boomers.
44 per cent of millennials said they were investing using P2P, compared with 16 per cent of generation X and eight per cent of baby boomers.
“Despite claims that millennials are stuck in a financial rut, trapped by high property prices and low-wage growth, this is a generation that has grown up in an era of record-low interest rates and recognise the need to secure better returns on their disposable income,” Dent said.
“On the other hand, those aged over 35 are at risk of missing out on new avenues offering higher returns.
“Generation X and baby boomers could benefit from following in the footsteps of millennials and introducing greater diversity into their investment portfolios to seek out higher returns.”