Older Investors Hold Their Nerve Ahead of EU Referendum

Tuesday 31 May 2016

• 72% of over 50s investors have not changed their investment strategy. • Half think their portfolio will fall if Britain votes to leave, compared to just over one in 10 if voters decide to remain. • Few have taken advice on their investments since referendum was announced.

Older Investors Hold Their Nerve Ahead of EU Referendum

A Saga Investment Services survey of investors aged over 50 found that almost three quarters (72%) said that their investment strategy had not changed since the announcement of the referendum.

However, one in 20 (6%) said they had been buying more British-based investments; and, one in 25 (4%) said they had sold out of the stock markets to buy other types of investments such as bonds, property and cash.

But while the majority of investors in their 50s and above are content to keep calm and carry on in the face of uncertainty, a significant minority (19%) are holding back from making new investments until they know the result of the vote.

Expectations of investment performance following the referendum paint a mixed picture. Asked what impact the referendum would have on the value of their investments, almost one in five (18%) said they thought their investments would increase if the UK votes to leave the EU; just over a third (35%) believed their portfolio would rise if the UK votes to remain.

Most people (52%) expected their investments to stay the same with a Remain vote, while more than one in 10 (14%) believed they would fall in value. If the UK voted to leave the EU, however, the outlook was a little more pessimistic – a third (32%) believed their investments would stay the same, whereas half thought they would fall in value.

Despite this uncertainty, just one in 20 (5%) have sought professional advice since the referendum was announced back in February 2016.

Commenting on the findings, Nici Audhlam-Gardiner, managing director of Saga Investment Services, said: “With the referendum just a few weeks away, most over 50s appear to be content to keep calm and carry on with their investment strategy. This is a sensible step – the uncertainty that the referendum is stirring is no different to the many other ‘unknowns’ that have hit the markets this year and investors should keep their heads through any potential short-term volatility.

“Sticking to the key principles of investing – a well-diversified portfolio, with a good mix of domestic and international investments, an asset allocation designed to meet your goals, as well as regularly drip-feeding savings - can ensure that over the longer term the over 50s are on the right path to riding through whatever the referendum vote brings.”


Notes to editors
1. Populus, on behalf of Saga, based on a representative sample of 1,006 of whom 253 were investors aged over 50 between 13 and 15 May 2016. Populus is a member of the British Polling Council and abides by its rules.

About Saga Investment Services
Saga Investment Services has been developed to open up the world of investing and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible. Customers can invest from just £100, and have access to investment advice and financial planning services. Saga Investment Services champions a straight forward and transparent approach to investing, and is a proud member of the Plain English Campaign. It is a joint venture between Saga, the leading provider of services to the nation’s over 50s, and Tilney Bestinvest, the expert investment and financial planning group.

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. 
This press release does not constitute personal advice Past performance is not a guide to future performance. Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest.  You should make yourself aware of these specific risks prior to investing.
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