06 Nov 2020
A 34.7% increase in average self-invested personal pension (Sipp) contributions among 30-39-year olds has been reported in the first 10 months of this year.
According to Interactive Investor data, contributions also increased among other age groups between January and October, with the figure increasing 18.3% among the 40-49 age bracket, and 6.8% among 50 to 55-year olds.
Nevertheless, contributions declined slightly so far this year within the youngest and oldest age groups. For those between the ages of 18 and 29 there was a 0.3% fall, and for people between 56 and 65 years of age the figure dropped 3.6%.
Interactive Investor head of pensions and savings, Becky O’Connor said of the data: “Our Sipp figures show a significant rise in contributions this year. This suggests that people in their thirties and forties were being sensible with the money they were saving during lockdown and squirreling it away for the long term.
“It’s positive to see these younger investors not afraid to up their investments and take advantage of lower stock prices after the initial crash. Whereas older groups, from this data, appear to have been more cautious.”
Interactive Investor added that figures from the Bank of England revealed the savings ratio – the amount saved as a percentage of income – increased to 29.1% in Q2, which is over four times higher than the level seen before the coronavirus pandemic.
Furthermore, according to household spending data from the Office for National Statistics, households in the UK are set to save on average £748.70 over the coming month due to the coronavirus-fuelled lockdown in place and subsequent reductions in holiday, leisure and transport spending.