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7% of Baby Boomers shift assets into lower‑risk accounts amid economic and market pressures

23/03/2026
FINANCIAL AND CORPORATE

New findings* from investment, protection and retirement specialist LV= reveals that investors are increasingly moving assets into cash or lower risk accounts in response to ongoing economic uncertainty and market volatility.

According to the findings, 7% of Baby Boomers reallocated funds into cash or low risk accounts over the past 12 months. Similar behaviour was observed among Generation X (6%) and the Silent Generation (4%). This shift toward caution, driven by geopolitical tension, political instability and ongoing market volatility, highlights the importance for advisers to consider diversified investment approaches that accommodate varying risk appetites in uncertain conditions.

Of the older age groups, Generation X remains the most likely group to adjust financial plans in response to external conditions, with 41% reporting taking some kind of action. This compares with 36% of Baby Boomers and 34% of the Silent Generation.

According to LV’s research, certainty is the most valued aspect of retirement planning, cited by 40% of Gen X, 56% of Boomers and 60% of the Silent Generation. Economic uncertainty is shaping behaviour across all groups, influencing 70% of Gen X, 67% of Boomers, and 63% of the Silent Generation. Political instability and global geopolitical events are also affecting financial decision‑making across the board.

Long term financial confidence remains subdued. Half of Generation X do not expect their finances to improve in the next five years, rising to 59% among Boomers and 68% among the Silent Generation. Worryingly, in each of these three groups a sizeable proportion say nothing would increase their financial confidence.

The findings highlight the need for advice led strategies that help clients remain invested while managing their risk appetite. For those seeking lower risk options without exiting the market, smoothed investment solutions can offer a way to mitigate short term volatility while supporting longer term objectives.

To support advisers, LV= provides a range of five Smoothed Managed Funds across pensions, bonds and ISAs. Available on and off platform, the funds are designed to meet a wide range of risk requirements, from very cautious investors who may otherwise default to cash, to those seeking moderate risk exposure. However as with all investments, smoothing does not remove risk or guarantee returns, and the value of investments can go down as well as up.

“Investors continue to navigate a highly uncertain environment, and many are understandably seeking greater stability. 

“When uncertainty rises, confidence falls - and that’s where smoothed solutions, such as LV’s Smoothed Managed Funds, can make a meaningful difference. These solutions help to offer the stability clients value, while helping them stay invested at times when stepping out of the market could be most detrimental.

“We offer a range of risk rated funds through the LV= platform, enabling advisers to blend them with a wide range of other solutions to meet different client needs - from very cautious investors to those seeking medium risk options with growth potential.”

Sarah HillsLV= Wealth Proposition Director

Visit our smoothed investments page find out more about LV’s full range of Smoothed Managed Funds.

 Capital at risk.

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Notes to Editors

  • For more information on the Wealth and Wellbeing Research programme, please visit our Wealth and Wellbeing page on LV.com.
  • *Unless stated otherwise, the data used in this press release comes from a survey of 4,000 nationally representative UK adults conducted for LV= by Opinium in September 2025.
  • For UK financial advisers only. 
  • Smoothed Managed Funds are a stock market related investment that can rise and fall in value. This means your client is not certain to make a profit and could get back less than they invested.
  • Although it’s unlikely, we may, at our discretion, need to suspend the smoothing mechanism to protect our members and our business. 
  • This could be required if the underlying daily fund price was less than 80% of the value of the smoothed price, or in other exceptional circumstances. 
  • In the rare event we do need to take this step, the fund would typically be valued on the underlying price or, at our discretion, on a daily gradual averaged price (except ISA which would be valued on the underlying price) until smoothing is reintroduced.