UK platform targets cash-strapped millennials

MillennialsThe fact that many UK millennials are struggling to make ends meet is not deterring a low-cost investment provider from targeting them in an investment marketing campaign.

Rplan, a fund platform launched in 2010, is urging cash-strapped millennials with any funds left over after living expenses to invest in a long-term diversified portfolio.

However, rplan has also produced research that found 31% of the 617 millennials – people aged between 18 and 34 – it surveyed accept an average of £229.50 (€297) each month from their parents to help with the cost of living.

There are 28% of millennials that still live at home with their parents or caregivers, and those who live away from parents have to take on an average of £190 in extra debt to cover monthly expenses.

One in ten millennials expect that they will never own their own home, while 17% expect they will – but not until aged between 35 and 50.

Undeterred, Nick Curry, director at rplan, said: “One advantage that millennials do have is time and those who can save for their future should consider the benefits of investing in a diversified portfolio over the long term rather than saving into cash accounts when interest rates are set to stay low for many years.”

He said also that initiatives in the UK such as help-to-buy Investment Savings Accounts are “great”, but society needs to look at what more can be done.

Rplan charges a flat fee of 0.35% a year on the amount invested. Its website gives comparisons with other providers and says it will save investors £6,487 over ten years, based on an £11,280 Isa investment.

©2016 funds europe