Only 18% of Americans are planning on increasing their investments in the stock market this year, a Bankrate survey finds. As continued inflation and accelerating volatility unnerve many investors, a growing number say they are hesitant to invest more.

A respective 56% and 62% cite market volatility and high inflation have caused them to not make changes to their investments.

The reluctance of investors is striking, especially after a pandemic where millions of retail traders jumped into the market. An estimated 20 million amateur investors began trading during the pandemic, in a period marked by the GameStop short squeeze and the Meta stock crash on Feb. 3, 2022, The New York Times notes.

Younger Americans More Eager

Much of the GameStop short squeeze, as well as the rapid rise of crypto last year, was driven by younger investors. Over 43% of Gen Z traders (ages 18-25) said they plan to add more to their investments this year. In a sign of more youthful enthusiasm, more than seven in 10, 73%, of Gen Z respondents have either bought or sold investments, even with the current conditions roiling the markets.

On the other hand, the survey found reluctance among older generations to invest during this period of heightened market volatility. Just 8% of Baby Boomers (ages 58-76) and 14% of Gen X (ages 42-57) will be contributing more to their investments this year. Over six in 10, nearly 64%, of Boomers, as well as 56% of Gen X investors made no moves in the market due to the volatility, in a sign the current conditions are causing widespread hesitance.

Greg McBride, chief financial analyst for Bankrate, says “Gen Z and millennial investors willing to invest more in stocks this year, despite market volatility and inflation, can see greater long-term reward for the discipline of hanging on and buying more at lower price points. Boomers are nearly three times as likely to invest less in stocks this year, rather than more, as compared to last year—but this is entirely consistent with dialing back portfolio risk as retirement looms, begins, or continues, regardless of the overall market environment.”

Highly Educated Stay the Course

The survey additionally found highly educated investors were more likely to stand firm on their investment moves, with over six in 10, 62% of those with a post-graduate degree, intentionally taking no actions in response to the bumpy conditions. This figure compared to 41% of those with a high school degree.

Investors, particularly those saving for retirement, have been willing to stay the course on saving in their 401(k)s, with long-term savers seeing gains in their accounts and the number of Millennial individual retirement accounts (IRAs) increasing, a recent report from Fidelity showed.

Finally, investors with higher annual incomes were more likely to keep their money invested in stocks, with just 15% of households earning over $100,000 exiting the market due to the volatility. This figure compares to over 23% of households earning less than $50,000, a sign that, perhaps out of necessity, concerned lower-income investors are more inclined to move money out of the market.

The survey was conducted from April 19^th to the 22^nd, 2022, among 3,658 American adults.