Gen Z leads UK shift to investments with £25bn in new inflows

Younger generations are driving a shift in the UK from saving to investing, according to Vanguard’s inaugural ‘British Money Mindset’ report.

The study found that more than a third (37%) of Gen Z investors took their first step into investing within the past two years, contributing £25bn in new investor inflows.

A third (33%) of Gen Z investors opted for crypto as their first investment.

Given its popularity, Vanguard has highlighted the importance of clear guidance and support on the principles of long-term, diversified investing.

This contrasts with older generations, where crypto adoption as a first investment represents just 9% of Gen X and 2% of those aged 62 or older.

These investors are more likely to start with established products such as shares (29% and 36%) and investment funds (22% across both cohorts).

The research also points to significant momentum yet to come. More than two-thirds (68%) of savers plan to start investing within the next two years.

Nine in ten (91%) Gen Z and 84% of Millennials intend to start investing by 2028.

21% of UK adults likely to start investing in 2026

Ben Summers, head of Vanguard for the UK, said: “The most striking finding from this research isn’t just that more people are investing, but that millions more are on the cusp of taking their first step.

“That’s incredibly encouraging, particularly among younger generations. But as more people begin their investing journey, it’s vital they build the right foundations.”

Earlier this year, Vanguard received regulatory approval to offer targeted support in the UK, with plans to launch a new service designed to help first-time investors take their initial steps into the market.

Offering simpler guidance, tailored journeys and practical support, the service aims to close the ‘confidence gap’ that can hold people back from getting started.

Summers continued: “There is still a clear gap between intention and action. Too many people still feel under-informed or lack confidence in their investment knowledge, despite recognizing the benefits investing can bring.

“As champions of the long-term interests of investors, we see a significant opportunity to help people build the confidence to get started in the right kind of way, turning curiosity into action that supports better long-term financial outcomes.”