Younger Adults Drive Investing Boom as Inflation Makes Cash Less Appealing

Young adults are leading a surge in investing as concerns about inflation and low returns on cash savings push many to shift money into markets, according to exclusive figures from wealth management platform Stratiphy.

Stratiphy's data shows 47% of people aged 18 to 34 made investments in the past 12 months, compared with just 23% of those aged over 55. The platform said younger investors frequently cited a desire to beat inflation and the low returns available on cash-based savings accounts as key motivations for putting money into investments rather than leaving it in cash.

The survey also found differences in short-term intentions. Some 29% of 18-to-34-year-olds said they do not intend to invest in the coming year, while 66% of respondents over 55 said they will not invest during the same period. Stratiphy said the gap in recent investing activity and future intent reflects generational contrasts in attitudes to risk and time horizons.

The platform reported that 56% of younger respondents said they were more comfortable keeping cash because of concerns about market volatility, compared with 68% of those over 55. Stratiphy noted that, despite those concerns, younger investors generally have longer time horizons and can often afford to take more risk than older savers who are closer to retirement.

Industry analysts say the combination of sustained inflation and modest interest rates on deposit accounts has eroded the real value of traditional savings, making investing comparatively more attractive for those seeking higher returns. Stratiphy's data suggests that younger cohorts, facing longer investment horizons, are more willing to accept short-term market swings in pursuit of returns that outpace inflation.

The platform's figures come amid broader debate over how best to protect household wealth in an era of elevated prices and shifting monetary policy. Financial advisers typically stress that investment decisions should consider individual risk tolerance, time horizon and financial goals, and caution that market exposure carries the potential for both gains and losses.

Stratiphy's exclusive snapshot highlights a distinct generational divergence in financial behaviour: a rising share of younger adults engaging with investment products while a substantial portion of older savers remain on the sidelines. The trends documented by the platform point to continued changes in how different age groups balance cash savings and market-based investments as they respond to economic conditions.