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The 2016 Schroders Global Investor Study (UK)

The 2016 Schroders Global Investor Study has highlighted that UK millennials (those aged 18-35 years) are engaged with their finances and more confident than the older generation when it comes to their investment knowledge.


UK millennials are engaged with their finances and keen to learn more says Schroders survey


The 2016 Schroders Global Investor Study has highlighted that UK millennials (those aged 18-35 years) are engaged with their finances and more confident than the older generation when it comes to their investment knowledge.

A thirst for knowledge

The study, which surveyed 1,000 UK investors, showed that  68% of millennials believe they have a greater understanding of investments than the average investor. This is compared to 48% of those investors aged over 35. Very few (5%) millennials felt they had less understanding of investments than the average investor, compared to 10% of older investors. A desire to learn more was also highlighted with nearly all (92%) millennials saying they would like to improve their understanding of investments compared to 75% of the older group.

Inflated income expectations

Despite their investment knowledge and desire to learn more the survey did highlight that investors’ desire for income and long-term returns appear to be significantly inflated. In the UK, the average level of desired income was 7.5% but with many countries’ interest rates at or near historic lows, plenty of investors look set to be disappointed. Millennials demands were more unrealistic, with a minimum desired level of income from their investments of 10.2% per year, compared to older investors 6.6%.

Short term investing bias

The study also highlighted millennials’ bias towards short term investing. On average, UK investors tend to hold their investments for just under five (4.7) years; however, the average millennial only looks to hold their investment for just over two-and-a-half years (2.7).   In comparison those investors aged 36 and over look to hold their investments for an average for 5.4 years.

However, when you look at the investment goals of millennials these tie in with their bias towards short-term investing as they are more likely to invest for immediate/short term financialrequirements. Compared to older investors millennials said they were more likely to invest for the following reasons:

  • To provide a deposit for buying their home (24% millennials vs 6% older)
  • To support a career change/pay towards professional qualification (21% millennials vs 6% older)
  • To help meet monthly mortgage/rental payments (21% millennials vs 6% older)
  • To buy something other than their home (21% millennials vs 15% older)
  • To provide an income for their children/other relatives (21% millennials vs 13% older)
  • To provide their only source of income (16% millennials vs 9% older)
  • To pay for healthcare/medical bills for themself or a relative (17% millennials vs 7% older)

On the other hand, they were less likely to invest to supplement their pension (30% millennials vs 60% older) than older investors. 

Seeking investment advice

When it comes to making an investment decision over a third (36%) of millennials would look to consult with friends and family, slightly fewer than those who would consult with a financial adviser (44%). A similar proportion said they would do their own research using independent financial websites (44%), investment management websites (45%) or investment provider websites (47%). Financial advisers remain an important part of the investment decision-making process for those older, with 39% saying they would consult a financial adviser the next time they make an investment decision and only 21% saying they would consult with friends and family.

James Rainbow, Head of UK Financial Institutions and Strategic Accounts at Schroders said:

“It is very encouraging that millennials are so engaged with their finances and that they are keen to learn more about investments.

 “Given their investment goals, it’s not surprising that millennials have a shorter time horizon however it’s important not to sacrifice longer term goals, particularly retirement savings. Different goals, time horizons and attitude to risk will inevitably require a different investment mindset but these should be approached with care and wherever possible, with the help of a professional adviser.”

For more information on the survey results please visit To learn more about your behavioral biases when investing you can visit and complete our income IQ test.

For further information, please contact:

Charlotte Banks          Tel: +44 (0)20 7658 2589/

Estelle Bibby               Tel: +44 (0)20 7658 3431/

Notes to Editors

For trade press only.  To view the latest press releases from Schroders visit:

Schroders plc

Schroders is a global asset management company with £324.9 billion (€409.7 billion/US$466.9 billion) under management as at 31 March 2016.  Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.   

With one of the largest networks of offices of any dedicated asset management company, we operate from 38 offices in 28 countries across Europe, the Americas, Asia, Middle East and Africa.  Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at

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Notes: About the Schroders Global Investor Study 2016

Schroders commissioned Research Plus Ltd to conduct an independent online study, between 30 March and 25 April 2016, of 20,000 investors in 28 countries around the world, including 1,000 in the UK. This research defines ‘investors’ as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last five years. These individuals represent the views of investors in each country included in the study.