Generation Z is turning the long-held belief that Britain is a nation of savers on its head, according to a recent survey.
The survey highlights that Gen Z is the most eager to explore investments, with almost 75% of respondents showing interest or already participating in investing activities.
Research conducted by NatWest indicates that individuals over 55 are nearly three times more likely than those under 25 to feel that investing is not suitable for them.
While 73% of Gen Z express openness to investing, only 40% of the ‘Silent Generation’ and 43% of ‘Baby Boomers’ share the same sentiment.
Millennials, on the other hand, often experience regret for not having started their investment journeys earlier.
The ‘Silent Generation’ typically includes those born between 1926 and 1945, who experienced the events of the Second World War firsthand.
Baby Boomers typically refer to the post-war baby boom, starting with those born in 1946 and ending in around 1964.
Generation X are typically defined as those born between 1966 and 1980 while Millennials are born from 1980 to 1995. Generation Z were born around 1997 to 2012.
Britain’s Generation Z are the most investment-curious generation with nearly three quarters of respondents open to or already investing
James Blower, founder of the Savings Guru said: ‘It’s great to see that Gen Z are more confident and open to investing.
‘As a nation, we are generally not as good at investing as other countries and this does hurt us financially as we do not maximise our money.’
While the younger generation is waving the investment flag, those aged 35 to 44 are the most likely to feel overwhelmed by investing.
> Read more: How to overcome overwhelm and start investing
More than a quarter of this age group would feel more comfortable starting a new job than investing.
This age group were the most likely to think they needed at least £10,000 in savings before investing.
They also set the highest salary threshold of any cohort before they would feel comfortable investing, an average of £58,678.
Mr Blower said: ‘It’s important for people to build an emergency fund and we typically suggest three months’ take-home pay is a good barometer of the level of savings that it is good to have available in cash.
‘Beyond that, if saving for a period longer than five years, investing will almost certainly provide a better return and on a ten-year time horizon in almost all time periods in history investing has outperformed cash.
‘It’s great that Gen Z are embracing this and taking the first steps to investing and I’d encourage them to do so.’
Generation X, also reported that they were not confident when it came to investing – despite half saying they wanted to invest for their children.
Aroma Khan, a NatWest investment expert, said: ‘Our research shows that Gen X, the sandwich generation balancing financial pressures for their children and parents alike, are the least confident of any age group when it comes to investing, despite the investment horizon still being significant.
‘And for those in their thirties and forties, that lack of confidence is compounded by a misconception, with many believing they need a high salary or significant savings before they can begin.
‘The reality is simpler. There’s no minimum to open a Stocks and Shares Isa, and building a habit of investing regularly with smaller amounts can be just as powerful as starting with a lump sum.
‘The new tax year is a natural moment to act and this campaign is about making sure those who’ve assumed investing isn’t for them yet realise it still can be.’
The research revealed that while the average person in Britain starts investing at 35, a quarter of people wanted to start before the age of 25.
It also showed that a quarter of British people thought that better understanding of investing would help them start investing.
While no investment is risk-free, it is highly unlikely that you would lose all your money when you invest it – especially if you put your money in a diversified portfolio.
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