Britain’s stock market investors are getting younger as the pandemic pushes households into taking control of their own finances, according to Hargreaves Lansdown (HL).
The average age of new customers joining the investment platform has fallen from 45 in 2012 to just 37 at the end of last year.
Britons inadvertently squirreled away a record £151.7billion last year, according to the latest Bank of England data, as Covid-19 paused consumers’ ability to spend on travel, meals out and big events.
The average age of new customers joining investment platform Hargreaves Lansdown has fallen from 45 in 2012 to just 37 at the end of last year
Many of these lockdown savers, faced with rock-bottom interest rates, have turned to the stock market to put their money to work.
HL saw 84,000 customers join in the final six months of 2020, taking its number of active clients to 1.5m.
They brought £3.2billion of new business with them, meaning HL now looks after £120.6billion of savers’ money, and profits at the platform shot up 10 per cent over the six months to £188.4million.
Chief executive Chris Hill said: ‘The reason that’s happening is people need to take control of their finances for the future.’
Part of this has been driven by changes in the pensions market, Hill said. But he added: ‘Then there’s the dynamics of volatile markets, low interest rates and people living longer.
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‘People have got the time and they are saving more, so they’re in a position where they can invest.’
