Investors look to the future in 166 per cent ‘Savings Spree’
Pent up savings over the pandemic have led to a surge in top up investments, new analysis shows.
Between February and April this year, there was a 166 per cent increase in the amount of money invested using top up technology, enabling micro payments into pensions and ISAs, compared to the same period in 2020.
True Potential carried out the analysis of its clients’ usage of the firm’s impulseSave app, which makes it possible for clients to top up their investments from GBP1 upwards.
The data shows that in 2020, GBP39.6 million was invested using impulseSave between February and the end of April.
In the same period this year GBP105 million was invested using impulseSave, with the majority of top ups being under GBP50.
Meanwhile, a study of 2,000 investors carried out by True Potential shows that 42 percent have saved more than normal since March 2020, rising to 56 per cent among those ages 18-24.
The poll shows that 36 per cent of people say their savings increase has arisen because they have been eating out and socialising less, followed by a fall in travel and holidays (21 per cent) and reductions in daily commuting (18 per cent).
When asked what they planned to do with their newfound savings, 66 per cent of respondents said they planned to save and invest while 20 percent were planning a spending splurge.
True Potential overseas GBP60 billion of client assets with GBP16 billion on the firm’s own investment platform.
So far this year True Potential has reported GBP2.5 billion of inflows into its investment funds. That compares to GBP1.5 billion in the same period of 2020, increase of 67 per cent.
True Potential’s Chief Executive, Daniel Harrison, says: “We’ve seen a steady increase over the last 14 months of people investing more into their pensions and ISAs. No doubt that is because none of us have been able to go out and spend in the way we normally would’ve done with successive lockdowns.
“We work with around 20 per cent of the UK adviser market and I think a lot of credit for this increase in people saving for their future, must go to financial advisers. Clearly they have used the time to provide advice to their clients to save the money that they haven’t been spending to provide a more secure retirement.”