Half of consumers are Investors

02 Feb 2022

50% of consumer own investment products

Consumers split into two even camps: 50% can be defined as Investors (i.e., they own at least one type of investment product), with the other half not owning any form of investment product (i.e. non-Investors). These findings come from the IRN Research report How Consumers Invest 2022, published today.

Investors, as might be assumed, tend to be more affluent, from higher social grades compared with non-Investors. The likelihood of a consumer being an Investor tends to rise with income, social grade and age, with men more likely to be Investors compared with females.

The typical Investors has almost £74,000 invested

The typical Investor holds an investment portfolio valued at £73,657. Older affluent consumers, especially those who are retired and have income from a private or workplace pension, have the highest levels of wealth. In general, like the tendency to be an Investor, the level of wealth among Investors tends to rise with income and social grade and is higher among males rather than females.

Other key facts about Investors

  • Around seven-in-ten Investors hold all or some of their investments inside an ISA.
  • Almost one-third of Investors use a fund/investment platform.
  • Most Investors can be classified as Careful Investors, i.e.,  Investors who both weigh up the features of an individual investment product and compare at least two alternatives before buying. This contrasts with Impulse Investors.
  • Younger Investors are the most likely to invest on impulse.
  • Over one-third of Investors have used a financial advisor over the past three years and almost one-quarter rely heavily on advisors to manage their finances.
  • Very few Investors currently use Robo Advisors but there is widespread interest in these services from both Investors who currently take regulated financial advice and those that do not.
  • Less than one-in-five Investors can be considered asScam Savvy. Scam Savvy Investors seem clued up as to how products are regulated and how to mitigate the risks they face with regards to scams, frauds and mis-selling and how to seek recompense if they do fall victim to one of these.
  • Over one-third of Investors  have been approached by firms whose actions are indicative of fraudulent, mis-selling or scam activity. The most common approach is by firms who tried to sell Investors very high-risk products unsuitable for their needs, from firms who tried to sell Investors products which are not regulated in the UK, and from firms who said they can help Investors get money back from failed investments or a scam.

About the Report

The aim of this report is to study how UK consumers behave when they make financial investment decisions. The report considers what types of products consumers hold, how they purchase and invest and what factors influence their purchases. It also considers how consumer investment behaviour has been influenced by developments like Covid-19 and potential investment frauds.  For this report, IRN Research commissioned Maru/Blue to conduct a survey among its online panel, drawing on a nationally representative sample of 2,148 UK adults aged 18+. This generated a sample of 1,076 individuals who own any type of investment product.

See detailed description

Related recently published IRN Reports

UK Consumers and Savers 2022 (Market Trends Report)

UK Financial Advisors (Market Trends Report)

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IRN Team

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