Cost of living crisis prompts UK retail investors to cash in
The ‘set and forget’ investing of the pandemic has become a thing of the past as retail investors dip into their investment pots to top their income
UK retail investors are liquidating assets to manage the cost-of-living crisis, according to new research from Tink.
Over half (51 per cent) have cashed in some of their investments to reduce the burden of rapidly rising prices in recent years while 42 per cent of those who owned a home have also dipped into their investment pots to reduce mortgage borrowing due to rising interest rates.
Nearly a fifth (19 per cent) plan to divest their investments further in the next six months because they need the cash.
The research, based on investors using DIY platforms, also suggests users are using the digital platforms on a daily basis with (61 per cent) saying investments play a key role in their day-to-day financial management, 70 per viewing them as a way to future-proof their finances.
“During the cost-of-living crisis, armchair investors are leaning on their investment pots as a way to support their day-to-day finances. But with many people today having less available money to invest with, investment apps are competing for a shrinking share of wallet,” Tom Pope, SVP Payments & Platforms at Tink said.
Consumer research was conducted by Censuswide on behalf of Tink in July 2023, amongst 505 national representative active individual investors in the UK.