by Hartey Wealth Management, 29th October 2021
Covid has changed our behaviour and ethics in many ways, including the way we invest
Coronavirus prompted a desire to move into ethical and sustainable investing for more than half of advised UK adults, according to a new report. Whilst the trend is common across generations, millennials are leading this charge.
The report looks at inter-generational planning and wealth transfer between advised families amid the financial volatility and insecurity, and found 61% care more about the environment and the planet now than did pre-Covid-19.
Financial returns with a positive contribution
Investing sustainably means putting money to work on issues ranging from adapting to, and mitigating climate change, improving working conditions, diversity and tackling inequality. Investors want to combine investing for financial returns with a positive contribution to the environment, to society, or both. More than a quarter (26%) of respondents are more concerned than ever. One in five (21%) are more worried now they have children and grandchildren.
The pandemic fuelled demand for sustainable investing and this is trickling down through the generations.
Sixty percent of millennials, 44% of gen-X and 35% of baby boomers confirmed, the pandemic increased their appetite for sustainable investments. Whilst 45% only want to invest in sustainable companies and funds, more than a third of UK adults don’t know what their current investments, including workplace and private pensions, are invested in.
Beginning the investment journey
More than one in five (21%) sought advice to begin their ‘investment journey’, potentially fuelled by individuals with savings not having traditional outlets for spending their income.
With £5.5 trillion to be passed to the next generation by 2047, the role inter-generational planning advice played pre-pandemic was significant.
The crisis shifted financial priorities, not just for those in later life with inheritance tax liabilities, but for all generations, prompting more to seek professional financial advice.
The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP. Tel: 0808 168 5866. www.harteywm.co.uk Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority