People have a short-term approach to saving characterised by a reluctance to invest in the stock market, new research reveals.

Respondents to a survey by YouGov for Royal London’s individually insured investment Riley, said they liked to save for treats such as holidays (55 per cent) and other luxury items (30 per cent).

Some 34 per cent were saving for retirement and 28 per cent said they were saving for their family’s future.

Only six per cent said they invested mostly in a fully diversified portfolio of stocks and shares, property and cash.

Head of marketing development Roger Edwards said that the results suggested that “most people have quite a short-term attitude to saving … supported by the fact that the vast majority prefer to invest in banks and building societies rather than in longer-term investments”.

However ifs school of finance has identified a shift in aspirations of the savers of the future.

The ifs Student Investor Challenge, which sees teenagers hypothetically speculating on the stock market, has attracted more than 30,000 students across the UK.

Find out more about investment advice

© Adfero Ltd