New Data Underlines Age Divide In Investment Evaluation Plans

Robbie Lawther

20 June 2017

Half of individual investors have said they have not yet re-evaluated their investment approach in light of a possible shift in the investment market, according to new research by Dreyfus, a BNY Mellon company.

The Helping Meet Investors Challenges study surveyed 1,250 investors with $50,000 or more in investable assets on their approach to investing. Dreyfus surveyed 200 independent and institutionally-based advisors.

Just under half, or 49 per cent, said they have not re-evaluated their wealth investments.

When the results were segregated into generations, there was a clear indication of difference in mentality.

Around 61 per cent of investors aged 55 and above indicated they have not or will re-evaluate their investment approach in today’s investing environment.

In comparison, younger investors, aged 21-34, who experienced the 2008 financial market crash, demonstrated a forward-thinking approach to re-evaluating their portfolios. Around 65 per cent had already evaluated their investment approach, compared to just 51 per cent of those aged 35-54 and 39 per cent of those aged 55 plus.

A greater percentage of younger investors also indicated they had worked with an advisor in re-evaluating their investments, while only around a third of those 55 and over had evaluated their investments with an advisor.

"As long-term risk/return expectations have shifted with an increase in inflation, the rise of U.S. nationalism and record-low volatility, investors would be well-served to re-evaluate their portfolios in light of changed circumstances to determine if they will continue to meet their investment objectives," said Mark Santero, chief executive, The Dreyfus Corporation.