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Should robo-advisors be targeting this demographic shrugging off Brexit?




By Daniel Lanyon on 8th August 2017

https://goo.gl/3Bf6N8

New research commissioned by Investec’s low-cost online platform investment platform Click & Invest, suggests ‘resetting’ could be the next big thing.

 

 

An emerging trend for overhauling careers is prompting major implications for the way people in Britain approach planning their financial futures, according to a new report by Britain Thinks, which dubs the process ‘resetting’.

 

The think tank’s research, which was commissioned by Investec’s new robo-advice platform Click & Invest, reveals large swathes of people are undertaking these big changes in the face of economic uncertainty owing to Brexit among other trends, changing work patterns and reduced job security and as are consequence are becoming more motivated towards long term savings and investment plans.

 

It found over a third of the UK adult population have recently changed their profession, and a further 32 per cent are planning to make major life adjustments in the next five years, such as changing  career, setting up a new business or even turning a hobby into a profit-making venture.

 

The report identifies two distinct types of ‘resetters’.  10 per cent of the population are ‘Recent Career Resetters’, of which 68 per cent have changed their career to something they feel more passionate about in the last year, gone freelance (23 per cent) or set up their own business (26 per cent).

 

Their average age is 35, they are more educated (49 per cent have a degree compared to 29 per cent of the general population), less likely to own property (49 per cent compared to 61 per cent of the general population) and less likely to have children (48 per cent do not have children compared to 39 per cent of the general population).  They are also more likely to have some savings and investments (84 per cent versus 78 per cent for the general population).

 

The second group are the ‘Seasoned Resetters’ (19 per cent of the population) who have seen a career and lifestyle change. They tend to be older with an average of age of 52.  Almost three quarters (70 per cent) are property owners, compared to 61 per cent of the general population and are more likely to have higher value savings and investments.

 

‘Recent Career Resetters’ are more likely to start an investment plan than the general population (55 per cent compared to 27 per cent) and 34 per cent of ‘Seasoned Resetters’ describe themselves as already financially secure compared to 20 per cent of the general population.

 

Viki Cooke, Founding Partner of Britain Thinks, said: “Our research identifies that across the population there is a move towards empowerment as people recognise that in a world of increasing uncertainty, they need to take control of their lives and ‘Reset’.  This has implications for work and careers, lifestyle and financial planning. We see this as a societal trend which is set to continue.”

 

The Report is based on a series of five in-depth ethnographic interviews with people who have already reset and their. A survey of 3,652 people across the UK to explore the nature of a reset, the prevalence of these changes and the steps that people take to achieve a reset. (February 2017) as well as a snap poll survey undertaken amongst 2000 people in the UK (July 2017).

 

Click & Invest, Investec says, is aimed at “opening the door for individuals who wouldn’t usually be able to access traditional wealth management services“. It is an actively managed online investment service for UK residents with £10,000 or more to invest. Fees for Click & Invest are 0.65 per cent on the first £100,000 invested 0.50 per cent on the next £150,000 invested and 0.35 per cent on any amounts invested over £250,000.

 

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