Money may not buy you love, but saving and investing can make you feel happier, according to a new survey.
The research found 81% of investors were less stressed and more satisfied with their lifestyle and wellbeing since they started saving.
Meanwhile, only 62% of people who had no investments reported the same levels of wellbeing, claims the survey from The Share Centre.
The company asked 2,000 over 18s about their plans to invest and how having some money to fall back on made them feel.
Just over a third of people asked had no investments (34%), a figure which rose to 50% for those aged between 18 and 25 year olds.
Retired more likely to invest
When asked why they had no investments, the two most common explanations were worries about risking money (34%) and a lack of understanding about how putting money into shares works (22%).
A third of under 25s argued they did not have the time to investigate the best way to invest.
Older investors were more comfortable with financial products such as ISAs and pensions and were less concerned about the risk attached to staking money against stocks and shares.
The retired were the largest group putting money into stocks and shares, with one in five holding stock market investments.
“The message we are getting is that people feel better off if they have some money invested and generally feel happier than those that don’t,” said Darren Cornish, director of customer experience at The Share Centre.
Drip-feeding cash into investments
“Younger people seem to have concerns about investing and what will happen to their cash, but the UK stock market has delivered a return of more than 600% since 1990.”
Cornish suggests drip-feeding cash into an ISA or pension is the best strategy for younger investors.
“Staking a little money often can have a massive impact on wealth in later years when the power of reinvesting dividends starts to show,” he said.
A recent survey by financial firm Royal London revealed that most 35 year olds have saved £14,000 towards retirement.
However, most pensioners spend £1,183 a month.
The firm calculates that if this spending is adjusted for inflation, when today’s 35 year olds retire in 2030, they will need retirement savings of £660,000 to generate enough cash to cover their spending.
