Over half (55%) of investors say they are scaling back investments, according to new research.

Three in four investors(74%) are rethinking their investment plans due to cost-of-living increases, according to the survey by investment provider and wealth manager Charles Schwab.

Two thirds (64%) of UK investors were concerned that the current economic climate will have a negative effect on their investments in the long term.

Younger investors were feeling the impact the most, with almost three quarters (73%) of Generation Z investors and 74% of Millennial investors unsure how to best adapt their investment strategies to protect against losses in the current financial climate, compared to 50% of Boomers.

Richard Flynn, managing director of Charles Schwab UK, said: “The current socioeconomic environment in the UK is having a worrying effect on the behaviours and attitudes of British investors. The majority of UK investors are now looking to scale back their investments, or have already done so.

“It is also worrying to see so many young investors struggling to make investment decisions – almost three quarters of Gen Z and Millennial investors don’t know how to adapt their investment strategies to protect against losses in the current financial climate. It is vital that they have access to educational tools and resources to help them navigate the ongoing market turbulence.” 

Confidence in investing has fallen steadily since December 2021, when the last Charles Schwab survey was conducted.

There was a 6% decline to 36% in the number of investors who are increasing how much they invest, and an 8% decline to 45% in the number of investors who said their investments had increased in value.

• Charles Schwab surveyed 1,000 UK investors with at least one type of investment in February.