New research reveals 1 in 5 investors think it will take them five years or more to get their financial plans back on track.
1.3 million UK investors believe either that they are not on track with their financial plans or have been completely thrown off course due to the COVID-19 pandemic, suggests a new study by Capital Group. The research indicates that one in five investors knocked off course by the pandemic estimate it will take them at least five years to restore their long-term financial plans back to health.
Designed to gauge the pandemic’s impact on UK investors, the nationally representative survey, among 1,003 retail investors aged over 45 years with £50,000 or more in investments, revealed that “Can I still expect the same income and lifestyle in retirement?” is the key question for investors post-pandemic. Looking at the more short-term impact, the survey also highlighted that more than a third (37%) of those without a financial adviser lack confidence in the performance of their investments over the next 12 months, compared to only a fifth of those with an adviser (21%).
Despite this marked difference in confidence against financial goals between those with and without an adviser, about 6 million UK investors (7 in 10) still currently manage their finances independently and don’t seek advice.
Commenting on the research’s findings, Chris Miles, Head of Financial Intermediaries UK, Capital Group, (pictured) said: “UK investors will have come through moments of severe disruption and turmoil in the past but it’s clear the COVID-19 pandemic has taken its toll on many investors’ financial plans, with recovery for some over five years away. As the research shows, it’s in times like these that the value of advice comes to the fore. We can see it playing a pivotal role in helping clients navigate challenges, seize opportunities, and plan ahead. It really can be the difference between investors questioning ‘Can I still?’ to believing ‘I can’ when it comes to their financial goals.”
