How has the pandemic affected people’s investment behaviour?

After a period of immense change, the pandemic has had a drastic impact on different types of investors. But how will expectations change from the short term to the long term?

Note:‘People’ are defined as those who will invest at least €10,000 in the next 12 months and who have made changes to their investments within the last 10 years. Due to this, Schroders acknowledges that this group is not representative of everyone’s experience of the pandemic.

The pandemic has caused people to spend more time focusing on their finances

74%

of people have spent more time thinking about their financial wellbeing and reorganising their personal finances

Expert investors* are more likely to have done so

People who have spent more time focusing on this:

Beginner / Rudimentary

66%

Intermediate

72%

Expert / Advanced

78%

Respondents were asked to identify their level of investment knowledge

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However, people are checking their investments at a similar frequency to 2019

People who check the value of their investments once a week or more

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And their expectations for returns are as optimistic as ever

Average annual total return expectation for the next five years

2017 2021 2018 2019 2020 9 % 12 % 10 % 11 % 10,2 % 9,9 % 10,7 % 10,9 % 11,3 %
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Despite the challenges of 2020, it was a positive year for savings

47%

of people saved as much as they planned

32%

saved more than they planned

21%

did not save as much as they planned

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In the short term, we see a divide in people’s saving and investment behaviour following the lifting of lockdowns around the world

46%

of people have put more money towards their savings generally

46%

have invested more in low-risk asset investments

37%

have invested more in high-risk asset investments

of people have put more money towards their savings generally

have invested more in low-risk asset investments

have invested more in high-risk asset investments

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The impact of the pandemic becomes more evident in people’s retirement plans

67%

of non-retired people would like to save more for their retirement as a result of the pandemic

But this doesn't necessarily translate to expected retirement age

34%

of non-retired people think they will retire later in the wake of COVID-19

33%

think they will still retire at the same age

32%

think they will retire earlier

34%
33%
32%

of non-retired people think they will retire later in the wake of COVID-19

think they will still retire at the same age

think they will retire earlier

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