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Older investors more likely to take investment risk

Over 55s more likely to use stocks and shares Isas

Stock Market chart

The most likely group of people to take a risk and chase higher returns by saving into stocks and shares Isas are older investors, according to new research.

Standard Life found 11% of investors aged 55 and above invest in the stock market via their Isa compared to 7% of 35- to 44-year-olds.

The research also revealed men and women take a very different approach to their investments with 12% men currently saving into a stocks and shares Isa. In comparison half the number of women (6%) chose this option for their investments. 

Stocks and shares Isas vs cash Isas

At the moment cash Isas are the most popular option with 41% of UK adults are currently investing in one, while only 9% invest in stocks and shares Isas.

While the returns can be greater than those achieved through a tax-free interest cash Isa, the money put into different types of investments through a stocks and shares Isa could go down as well as up. 

Standard Life’s study suggested that 6% of people are planning to save more into a stocks and shares Isa in the new tax year than they did last time. Again there was a gender difference with more men (8%) than women (4%) planning to invest more money this way.

Investors can put up to £11,520 in a stocks and shares Isa in the current tax year, of which up to £5,760 is eligible for a cash Isa.

Is a stocks and shares Isa right for me?

Before taking the plunge and placing savings into a stocks and shares Isa, an investor needs to be sure they are financially ready to put money at risk on the stock market. 

Read our beginner’s guide to investment before reading about how to invest in a stocks and shares Isa

Also, have a play with Which?’s unique investment portfolio tool that helps consumers choose how much money to put at risk based on different needs.

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