Gen Z and Millennials Boast Strongest Appetite to Invest Compared to Older Generations

Younger generations are demonstrating much greater appetite to invest compared to their parents’ generation as they look to beat inflation and low returns on cash savings, according to research from new personalised wealth management platform, Stratiphy. 

Almost half (47%) of 18-34 year olds have invested in the last 12 months compared to less than a quarter (23%) of over 55s as they look to ride out a challenging economic climate and relatively low returns on cash savings.

Just three in ten (29%) younger people say they have no plans to invest in the next year, compared to two thirds (66%) of those aged over 55.

Younger investors are reluctant to save in cash as they seek higher returns – 56% of 18-34 year olds say they’re more comfortable saving in cash rather than investing due to volatility, compared to seven in ten (68%) over 55s who are closer to retirement.

Over half (55%) of younger people say cash savings are as risky as investments, compared to just 33% of people aged over 55, due to the potential for returns that can’t keep pace with inflation.

However, despite a strong appetite to invest, many younger people are concerned about whether they have the financial knowledge to do so. Nearly six in ten (56%) 18-34 year olds admit they don’t think they have a strong enough financial understanding to manage their own investments, compared to 46% of over 55s. 

Almost six in ten (56%) investors aged 18-34 say they’ve previously actively managed their investment portfolio but lacked the insight to make informed decisions, compared to 27% of investors aged over 55s. 

New wealth management platform, Stratiphy, has launched to empower investors to take control of their investments and to meet their individual goals and risk appetite by providing investors with access to personalised and AI-powered investment strategies.  

Daniel Gold, CEO and Founder of Stratiphy, said: “Millions of young people are shunning poor value cash savings in favour of investing in order to beat inflation and secure higher returns.  

“Whilst their parents may be more risk averse as they approach retirement and favour cash savings over potentially superior yields from investments, Gen Z and millennials have time on their side to ride out market fluctuations and a strong appetite to maximise their future returns.  

“Faced with a growing cost of living crisis and a widening advice gap, it is vital that younger investors have access to simple wealth management tools that offer the personalisation and insights needed to empower them to take control over their portfolios and future wealth.”  

Stratiphy offers everyday investors an AI-powered investing toolkit that offers back-testing and investment automation, replicating the approach taken by investment professionals. This allows users to see a realistic simulation within seconds, demonstrating how their personal portfolio would have evolved over a 10 year period, providing sophisticated insight into long-term historic performance.

This is designed to improve decision-making and reduce barriers to building personal portfolios.  

Stratiphy’s model unlocks wealth management for those typically priced out of these services – its subscription-based model provides cost transparency and certainty for retail investors who otherwise would not be able to access personalised investment strategies to meet their goals.

Stratiphy was granted regulatory approval by the Financial Conduct Authority (FCA) in 2024.