Interactive Investor

Are Brits really shy about money?

interactive investor data suggests families and friends are talking investments and retirement.

7th November 2023 09:57

by Myron Jobson from interactive investor

Share on

pig piggy pension warning 600
  • More people openly discuss money with friends and family than last year – data from ii’s 2023 Great British Retirement Survey shows
  • The same survey shows that 39% now talk to their partner more than once a week about money
  • This is turning into action – ii reports that 47% of those who gift ii’s Friends & Family subscription, give this to their adult children
  • Kids aren’t shy either – 7% of subscriptions are given to parents

To really see if Brits are discussing their finances, this Talk Money Weekinteractive investor, the second-biggest investment platform for private investors in the UK, dug into its data to see if families in the UK are talking about investments and retirement plans with their children and partners.

ii Friends & Family subscription 

ii’s Friends & Family subscription is a fantastic way for loved ones to kick-start their investment journey, and really hit the ground running. 

Since interactive investor widened its reach as best value provider, customers on ii’s Investor plan can now gift a free subscription to ii to 2 people for free, making it incredible value overall.

There’s also the added benefit of ii’s market-leading flat-fee structure and free regular investing. Charges can really compromise returns over time; but through ii’s subscription-based model, people can start their investing journey with a great value platform that gives access to the whole investment universe, as well as a plethora of tools and educational content that helps customers become better, more confident, investors.

We’re talking more about money

Is the taboo around money beginning to break down? Figures from ii’s recently published Great British Retirement Survey 2023 suggest the nation is becoming more open about its finances. In the report, half (52%) say they openly talk with family about retirement and savings (up from 47% last year). Likewise, 37% of respondents said they openly discuss money with their friends, compared with 34% last year.

The survey also reveals that 39% of respondents talk more than once a week to their partner about money, with a further 47% talking occasionally about money and only 14% talking rarely of never about money with their partner.

Talking turning into action

interactive investor gives customers on its Investor and Super Investor Plans the opportunity to gift a number of ii subscriptions to friends and family for free and the data shows parents, siblings, and partners are particularly prolific at getting their loved ones involved in investing.

Subscriptions tend to be gifted in two ways. Almost half (47%) of ii’s free subscriptions gifted to friends and family by ii customers are parents adding their adult children to the investment platform.  

In addition, 44% of ii’s free subscriptions are being gifted to people of the same generation/age group as the referee. This suggests ii customers are also gifting the investing plan to partners, siblings, and friends.

However, there is a smaller but not insignificant third groupof those who gift subscriptions; and this group shows it’s not just one-way traffic between parents and their offspring. Some 7% of subscriptions have been gifted from children to their parents, which speaks to the openness some families have when it comes to their finances.

Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Our Great British Retirement Survey suggests that the cost-of-living crisis has got us talking more about our finances, with budget squeezes seemingly coming from all areas of expenditure. From the food we put on our table, to the cost to heat our homes, price rises are forcing many people to undertake an honest assessment of their finances.

“Money talks, but as a nation we tend to keep schtum about matters relating to our personal finances - often through embarrassment or shame. However, talking about money helps improve financial literacy, it allows people to better understand how money works, how to manage it, and make informed, and more confident, financial decisions.

“Money discussions are crucial in relationships, too. Financial disputes are a common source of conflict in a relationship, but open and honest communication can help resolve financial disagreements and strengthen relationships. Chatting about investments and savings should be up there with property, sports and entertainment for acceptable conversation topics with friends and family.

“There may be good reasons why you don’t want to talk about what you’ve squirrelled away in savings or the size of your pension pot, but there are ways of discussing money without having to reveal sensitive information. Discussing fund choices, for example, is a good way to talk about investing without using numbers.”

Alice Guy, Head of Pensions and Savings, interactive investor, adds: “It’s encouraging that so many of us now talk regularly with our friends, family and partners about money and pensions. Talking about money used to be a taboo subject, so it’s great that it’s now becoming part of our everyday conversations. It’s often easier to make changes once we’ve talked things through with a loved one or trusted friend, and sharing our knowledge is a fun way to learn more. 

“When it comes to your pension, sitting down and talking about retirement with your partner is hugely important. You can talk together about your retirement goals and check your pensions to see if you’re both on track for the retirement you want.”

Talking to your children about money

Myron Jobson continues: “Parents and carers also have a crucial role to play in helping their children develop a healthy relationship with money. Fostering positive attitudes towards budgeting and saving from an early age will help them make the right financial decisions in later life. 

“A great way to start the discussion is by focusing on basic concepts. For younger children, playing shop is a good way to help them understand how money is used day to day, as well as introducing the concept of budgeting. 

“One of the most practical ways of teaching older children about the benefits of savings and investing is by putting theory into practice. A Junior Isa can be a great way for children to engage in a money pot that will be given to them when they reach adulthood. While they can’t invest for themselves, you could spark their interest by including them in the conversation and investing in things they might be interested in, for example, Sony if they are a fan of PlayStation. And it’s really important to remember that investments can go up as well as down - diversification is key and thinking long term helps engender a good investing mindset.”

ii's full Great British Retirement Survey 2023 can be read here.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Get more news and expert articles direct to your inbox