From MoneyWeek · · 1m 40s
How Age Affects Investment Choices
Investment strategies shift with age: younger investors favor growth, older ones seek stability.
In brief
Investment strategies shift with age: younger investors favor growth, older ones seek stability. People under 25 average £18,240 in ISAs, while over 85s hold £227,250, with strategies adapting to retirement timelines. Originally reported by MoneyWeek.
Investment Approach by Age
People of different ages tend to invest differently based on their financial goals and time horizons.
Retirement-Approaching Investors
Those nearing retirement shift to less risky assets to protect pension wealth as they start drawing from it.
Younger Investors
Younger investors often take on more risk due to longer time horizons for their investments to mature.
Average ISA Values by Age
Under 25: £18,240; 25-34: £41,060; 35-44: £68,500; 45-54: £116,420; 55-64: £150,990; 65-74: £176,600; 75-84: £204,870; 85+: £227,250.
Investment Preferences by Age
Younger investors favor exchange-traded funds and tracker funds, while older investors prefer investment trusts, gilts, and cash ISAs.
Hargreaves Lansdown Data
70% of ETF and tracker fund holders are under 55, while only 6% and 7% are aged over 75.
Global Investing Trends
Investors aged 35 to 54 hold nearly half of their shares overseas, indicating international exposure.
Retirement Strategy Shift
As retirement approaches, investors dial back on higher-risk assets and introduce more stable returns or income-generating investments.
Investment Trusts and Gilts
42% of gilt holders and 41% of cash ISA holders are aged 55-74, while 57% of investment trust holders are 55 or over.
Key Investment Principle
Portfolios evolve gradually with growth assets, income-producing investments, and lower-risk holdings playing different roles at different life stages.
The short version
People under 25 average £18,240 in ISAs, while over 85s hold £227,250, with strategies adapting to retirement timelines.
