A new demographic of young investors now see stocks & shares ISAs as their ticket to millionaires’ row.
A poll of 1,000 ISA holders conducted by Freetrade and InvestingReviews.co.uk revealed that 14% of 18 to 24-year-olds expect to have a £1million fortune by retirement — compared with 4% across all age brackets1.
Many of these young investors first appeared during the pandemic, with the acceleration of digital technologies making it easier than ever to invest.
Although cryptocurrencies have been popular, the poll’s findings indicate stocks & shares ISAs are also seen as an appealing long-term choice for those beginning their investment journey. 46% of people aged between 18-24 said investing in their ISA was a priority, far more than investing in cryptocurrency (32%).
While ISA millionaire numbers — currently 2,000 across the UK — are expected to grow significantly as investor pots compound, most respondents thought the £1million milestone would remain out of reach for them. On average, investors anticipated building a pot of £218,000 by retirement, while 41% didn’t think they would pass the £100,000 mark. Men were more likely than women to think a £1million pot was in their reach (5% v 2%).
The research also looked at the investment goals of ISA holders, with the majority (59%) saying they were investing towards financial freedom or retirement. Just over a third (37%) said their focus was on building an “emergency fund”. Other reasons included creating generational wealth for their family (19%), saving for a home (13%), and saving for a special holiday (12%).
Investment goals differed markedly between the sexes. Female respondents were twice as likely to spend their savings on their childrens’ education, wedding or to help them get a foot on the housing ladder (14% v 7%). And they were also twice as likely as male respondents to be saving towards buying their own home (17% v 9%).