Earning less but saving more?
Has the Covid-19 pandemic and its associated economic fallout changed your attitudes towards investing?
According to a new survey, the financial impact of the pandemic has changed attitudes towards savings and investment for more than half of us.
The survey from insurer NFU Mutual found that 52% of its customers said the pandemic has impacted their approach towards investing money.
Many of those who responded said they are attempting to make themselves more financially secure as a result of the events of 2020.
Other respondents to the survey said they are attempting to take advantage of volatile stock markets and having more disposable cash thanks to the lockdown.
21% said they have invested more money in the last three months, with 58% saying this is because they are spending less money elsewhere.
But half of those who are investing more during the pandemic say they have been prompted by the events of this year to make themselves more financially secure.
Women in particular, and those aged under 55, were most likely to invest with the goal of long-term financial security.
Nearly a third of those who are investing more this year say they think it’s a good time to put more money into the stock market, because prices are low.
Of course, not everyone is investing more money and the pandemic is affecting people in different ways.
19% of survey respondents said they are saving and investing less due to the Covid-19 pandemic.
Of those who are investing less money, 68% said it was due to low interest rates, and 54% thought it was too risky to invest in the stock market. The economic impact of the Covid-19 pandemic has reduced incomes for a quarter of survey respondents, and the majority of those hit by lower-income were under age 55.
Richard Needham, Investment & Savings expert at NFU Mutual, said: “These figures prove that, despite the negative financial impact the pandemic has had on the stock market and on incomes, many people are looking at ways to best prepare themselves financially for the future.
“Those who now have more disposable income, usually because they are spending less due to restrictions, are trying to invest that extra money. Even where customers have taken a hit to their incomes, they are still looking at ways to save for the future.”
If you are looking to save or invest and need some financial advice, talk to Kellands.