How much money do people in your age group usually have invested, and which types of assets do they favour? Our exclusive data has the answers.
How much money do people in your age group usually have invested, and which types of assets do they favour? Our exclusive data has the answers.
Investing can help build wealth over the long term, though everyone takes a different approach.
Your circumstances and goals will shape the approach you choose, but research finds clear differences in how people invest at different ages.
As retirement nears, many people shift money into safer assets. They do this to protect their pension wealth before they begin drawing on it.
This isn't a fixed rule; the right choice depends on what matters most to you financially.
"Portfolios usually change slowly," said Kate Marshall, head of fund research at Hargreaves Lansdown. "Growth assets, income-producing investments and lower-risk holdings may each matter more at different stages of life. What counts is keeping the mix aligned with your goals, time horizon and attitude to risk."
How much do people have invested at different ages?
HMRC data obtained by BFIA through a freedom of information request shows that investment portfolios tend to be larger among older people.
As people grow older, their earnings usually rise, leaving more money available for investments.
The longer you keep an investment, the more time it has to grow. If the market rises, those original shares become more valuable - as long as you don't sell in a rush.
Stocks and shares ISAs tend to be worth more as people get older. The under-25s have the lowest average balance, at 18,240, while those over 85 hold the highest, with an average of 227,250.
Swipe to scroll horizontally Source: HMRC, 11 November
How should you invest at different ages?
Your financial priorities usually shift over time, and your choice of investments may shift with them.
Hargreaves Lansdown data shows that investment preferences shift with age: younger investors lean toward exchange-traded funds (ETFs) and tracker funds, while older investors more often choose investment trusts, gilts, or cash ISAs.
Marshall said the figures do not show that one investment is better than another. They point instead to what investors need their money to do at a particular point in time.
On HL's platform, roughly 70% of ETF and tracker fund holders are younger than 55. Just 6% of ETF holders and 7% of tracker fund holders are over 75, which suggests these products appeal much more to younger investors.
Marshall said younger investors often have decades before retirement, giving them time to pursue long-term growth.
Downturns can be painful, but investors usually have time to recover. That long view makes growth-oriented assets such as global equities appealing. For beginners, low-cost options - including ETFs and tracker funds - offer a straightforward way to spread money across a wide range of markets.
At the same time, Hargreaves Lansdown's data indicates that people aged 35 to 54 account for nearly half of overseas-share owners, with investors in their 30s through 50s generally buying more international stocks.
Marshall said the shift may reflect more established portfolios, a stronger appetite for investments outside the UK, or the belief that overseas markets offer better upside. International investing also gives people access to companies and sectors that simply aren't available in the UK market.
Retirement often prompts another change in strategy. As it draws closer, people tend to focus more closely on whether their savings and investments can support them through retirement.
With less time to recover from losses, Marshall said investors may reasonably reduce their exposure to higher-risk assets such as equities. They might instead choose investments offering steadier returns or an income alongside growth.
Hargreaves Lansdown data indicates that gilt and cash ISA holders tend to be older: 42% and 41%, respectively, fall between ages 55 and 74.
Investment trust holders are older still. Some 57% are at least 55, while 19% are 75 or above.
Marshall said the likely reason is that many investment trusts have a long history of paying income and increasing it over time.
Because they have a fixed structure, these investments can give managers more room to plan for the long term. That may appeal to people nearing retirement who want a mix of growth and income without giving up diversification.
Taking more risk when you're young and shifting toward safer assets later isn't a fixed rule. At every age, your choices should reflect your circumstances and priorities.
Portfolios usually change over time. Growth assets, income-producing investments, and safer holdings may each matter more at different stages of life. Marshall said the balance should reflect your goals, time horizon, and comfort with risk.
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