And investment in crypto assets has also increased to 5.8 per cent from 2 per cent in 2020.
When the FCA delved a bit deeper it found just 19 per cent of 18 to 34-year-olds had investments in 2020, and this has now jumped to 29 per cent.
Men made up 70 per cent of the new young investors in May 2022, and a greater proportion of these new young investors had an annual income of less than £50,000 compared to everyone who invested (83 per cent versus 70 per cent).
What is clear is that a whole new cohort of investors are emerging who are being tempted into investing for more ‘emotional’ reasons.
When asked, 40 per cent of new young investors said they had done so for the novelty or to learn something new, and 37 per cent for the challenge, excitement or fun.
Social motivations are obviously playing a big part as well – a quarter said they invested to talk or learn from others.
The FCA’s Financial Lives survey is an important piece of research, packed with many statistics and details of people’s financial lives.
It is worth financial advisers reading through this data alongside their financial services counterparts, and hopefully it can help in gaining a better insight into their customers’ financial needs and desires.
Rachel Vahey is head of policy development at AJ Bell
