Investors are failing to look at the long term, a new study has found. Information from the Schroders Global Investment Trends report shows that, despite more than half the survey respondents seeing retirement saving as a key goal, just 5 per cent invest for a timeline of more than 10 years.
A boost in retirement savings is a key goal for 59 per cent of UK investors surveyed, one of the highest proportions globally.
The survey of 15,749 investors across 23 countries, found that on a global average, 46 per cent of investors said retirement saving was a core investment goal.
Among European investors, only the Swiss said retirement saving was more important to them – with 60 per cent saying this was their key investment goal – opposed to alternative retirement income.
The survey showed UK investors are happier with more low-risk assets, with just 13 per cent willing to place their money into higher risk assets such as equities, while 38 per cent would allocate to funds such as bonds with a medium risk, and the majority – 49 per cent – saying they would place their investments in low-risk assets such as cash.
Perhaps surprisingly, 43 per cent of survey respondents said they gain professional advice before making their investment decisions, leaving many without having had any financial advice or planning.
Head of UK intermediary at the asset manager, Robin Stoakley, said that although UK investors are clearly focused on the need for retirement savings, the reality is the additional flexibility announced by chancellor George Osborne in the Budget (see this month’s cover story on page 46) is not enough to guarantee a comfortable retirement.
“Investors should ensure they structure their portfolios to deliver the returns they need over the relevant time horizon and review the assets they invest in to ensure they are achieving an appropriate balance of risk, growth and income to suit their needs.”
charlotte.richards@ft.com
