Investors’ cash waiting on the sidelines

Results from our poll suggests investors are keen to get back in the spending game.

More than half (59%) expect to start spending again, with 44% expecting to spend more naturally as the economy opens up and 15% saying they are actively planning to spend more, according to a poll by interactive investor, the UK’s second-biggest DIY investment platform.

More than a quarter (28%) of investors say they plan to maintain their current saving and investment levels rather than spend more as the current lockdown eases. Only 13% of investors said they don’t expect to have enough spare cash to start spending more again when the economy begins to open up.

However, most are not planning changes to their current investment portfolios as restrictions are lifted. More than half (52%) said they are not making changes to investments in anticipation of lockdown easing. Although a quarter – 26% - said that they are buying stocks and funds they expect to do well. A further 13% said they were keeping money in cash ready to invest.

Becky O’Connor, Head of Pensions and Savings, interactive investor, said: “This poll suggests that while there is a determined set who intend to stick with the healthy saving and investing habits they have cultivated during lockdowns, a larger proportion of investors are looking forward to spending again. Some investors are altering their investment portfolios in anticipation that other people will also start spending again on similar things.

“The poll backs up recent forecasts that a spending-led recovery could be on the cards, after lockdowns caused many households whose incomes were unaffected by the pandemic to inadvertently build up large cash piles. While there’s evidence from our customers’ behaviour that some of this went into long-term investments like pensions, there’s also evidence that there is cash warming up on the sidelines and keen to get back in the game.”

Among those who expect to spend more when restrictions are eased, 34% said booking holidays would be their top spending priority, while 32% said they would spend on going out to restaurants, pubs and bars again.

Investors also expected to increase their leisure spending, such as going to the gym (10%) and spending on clothes and shoes (10%). Other expected spending activities were commuting, home improvements and property.

Notes to editors

• Poll conducted on the interactive investor website between 11th and 14th January 2021, receiving 2,612 responses.