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Younger investors came away from last month’s Budget feeling positive, with Gen Zs and millennials noticeably more upbeat than their older counterparts, a survey has found.
The Chancellor, John Healey, said he was providing “breathing space” to households and businesses at a time when the cost of living is rising, announcing measures such as a one-off £100 energy payment.
But he also unveiled tax rises, including on property rental and savings income, in a bid to raise more cash for the Treasury.
The research, by Charles Stanley Direct, covered 1,000 DIY investors in the UK, meaning people who choose their own stocks and shares.
It found that about 78 per cent of Gen Z investors felt positively about the Budget, as did 68 per cent of millennials.
Optimism thinned sharply among older generations, with 37 per cent of Gen X positive about it and 28 per cent of baby boomers saying the same.
Among those who felt negatively, almost half said it was because they would be worse off financially as a result.
About half of Gen Zs said the Budget had inspired them to turn to AI tools to help them work out their next steps.
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Chief investment analyst for Charles Stanley Direct Rob Morgan said many measures in the budget had been targeted towards younger people.
“The handful of rabbits Healey pulled from his hat were predominantly aimed at appealing to younger voters,” he said.
“Between increasing the side-hustle tax-free allowance, an Isa specifically designed for first-time buyers, and the UK’s first ever starter Isa, it’s understandable that Gen Z and younger millennials will feel buoyed by the Budget.
“Meanwhile, the extra tax on property and savings income is going to increase the burden for the wealthy – who are typically older.
“And measures specifically designed to support older populations – the pension allowance, and the U-turn on lower cash Isa allowance – are more marginal.”
Separate research by Barclays found that almost half of Gen Zs said the national minimum wage rise will provide relief with the cost of living.
Mr Healey confirmed that the national minimum wage will rise again, by 3.9 per cent, in April.
However, a third of UK adults said the Budget did not go far enough to support households, and 32 per cent were now less confident about non-essential spending.
Barclays’ chief UK economist Jack Meaning said British households were “telling a more cautious story”.
“Energy support will help at the margin, but many are still feeling the squeeze and holding back on non-essential spending,” he said.
