Capital Group research reveals UK investors derailed from financial plans by Covid
Some 1.3 million UK investors believe either that they are not on track with their financial plans or have been completely thrown off course due to the COVID-19 pandemic, suggests a new study by Capital Group, one of the largest and most experienced investment companies in the world, with assets under management of GBP2.6 trillion.
The research indicates that one in five investors knocked off course by the pandemic estimate it will take them at least five years to restore their long-term financial plans back to health.
Designed to gauge the pandemic’s impact on UK investors, the nationally representative survey, among 1,003 retail investors aged over 45 years with GBP50,000 or more in investments, revealed that “Can I still expect the same income and lifestyle in retirement?” is the key question for investors post-pandemic. Looking at the more short-term impact, the survey also highlighted that more than a third (37 per cent) of those without a financial adviser lack confidence in the performance of their investments over the next 12 months, compared to only a fifth of those with an adviser (21 per cent).
Despite this marked difference in confidence against financial goals between those with and without an adviser, about 6 million UK investors (seven in 10) still currently manage their finances independently and don’t seek advice.
Commenting on the research’s findings, Chris Miles, Head of Financial Intermediaries UK, Capital Group, says: “UK investors will have come through moments of severe disruption and turmoil in the past but it’s clear the COVID-19 pandemic has taken its toll on many investors’ financial plans, with recovery for some over five years away. As the research shows, it’s in times like these that the value of advice comes to the fore. We can see it playing a pivotal role in helping clients navigate challenges, seize opportunities, and plan ahead. It really can be the difference between investors questioning ‘Can I still?’ to believing ‘I can’ when it comes to their financial goals.”
This research has been conducted as part of the first sustained brand campaign to promote Capital Group in the UK, unveiled earlier this year. The campaign’s creative strategy, which features the strapline “I can”, has been bringing to life the core elements of the business’ unique approach to investing, The Capital SystemSM.