Gen Y investors are making their first investments much earlier than their parents’ generation did, according to a study released Monday by TD Investor Insights Index.
Millennial investors reported making their first investment at age 20, whereas baby boomers held off until age 27.
The study examined the outlook of 1,002 adult Canadian investors ages 23 to 33 and 53 to 66.
Forty-one percent of Gen Y investors said family encouragement had prompted their first investment. In contrast, 36% of baby boomers said the trigger had been an increase in income.
The report found that in the past 12 months, millennials invested an average of 18% of their income, but ideally would invest 29% of their income and hoped to be investing 30% in 10 years’ time.
Thirty-five percent of millennial investors said they would increase the proportion of their income invested if the stock markets improved, compared with only 15% of baby boomers who would do so.