The financial impact of the coronavirus pandemic has changed attitudes towards saving and investing in more than half of us, according to a survey of its customers by leading rural insurer NFU Mutual.
Fifty-two per-cent of respondents admitted the pandemic had impacted their approach to investing, with many prompted to make themselves more financially secure.
Others are attempting to capitalise on low stock prices and having more money in their pocket thanks to lockdown.
One in five (21%) respondents have invested more money in the last three months, with 58% of those people saying it’s because they are spending less.
However, half of those investing more say they have been prompted by the pandemic to make themselves more financially secure, and this was particularly the case for women and those under 55.
Three in 10 of those who are investing more are doing so because they believe it is a good time to invest with stock prices low.
The survey found 19% are investing less because of the pandemic. Of those, 68% cited poor interest rates while 54% thought it was too risky to play the stock market.
Under-55s still saving
Despite the fact coronavirus has reduced the income of 25% of respondents, with the majority of those affected under 55, that age group has been prompted to seek financial advice and save more as they prepare for a future after the pandemic.
Richard Needham, Investment & Savings expert at NFU Mutual, said: “These figures prove that, despite the negative financial impact the pandemic has had on the stock market and on incomes, many people are looking at ways to best prepare themselves financially for the future.
“Those who now have more disposable income, usually because they are spending less due to restrictions, are trying to invest that extra money.
“Even where customers have taken a hit to their incomes they are still looking at ways to save for the future.
“We see our customers taking a common sense and pragmatic approach to saving and investing in this time of ongoing uncertainty that coronavirus brings to the economic outlook.”
Key findings of survey
- 52% of people said Covid-19 had changed their attitudes to investing and saving
- 53% said their disposable income had stayed the same, while 19% had seen it increase and 25% had witnessed a decrease
- 76% have invested or saved in the last three months, with cash savings and cash ISAs still the most popular route (37% of people), despite poor interest rates
- 21% of people are more likely to invest at the moment, especially those under 55
– Of these, 58% say it’s because they’re spending less now, and 49% would like to feel more financially secure
- 19% say they are less likely to invest at the moment, especially those 55-74
– Of these, 68% cite poor interest rates and 54% feel it is “too risky” to play the stock market.