A new poll reveals that half of Britons are hesitant to invest their money, primarily due to fears of losing it, economic uncertainty, and being overwhelmed by financial jargon. The survey of 2,000 adults found that 30 percent rated their investing knowledge as poor, and 37 percent believe investing is reserved for the super-rich. Additionally, 33 percent think it is mainly for high-net-worth individuals, while 32 percent associate it with city bankers.
Barriers to Investing
As a result, 55 percent feel that the perception of investing as a wealthy person's activity acts as a barrier for others. Despite this, 83 percent of respondents have a pension, but 58 percent are unaware of the investment options available through it. The research, conducted by workplace pension scheme Nest, also found that 74 percent believe it is important for people of all income levels to have access to investment opportunities.
Underrepresented Groups
Among the most underrepresented groups in investing are working-class individuals (47 percent) and women (30 percent). Gavin Perera-Betts, chief customer officer at Nest Pensions, said: “A lot of people think investing is only for those in suits in the city, but that’s simply not true. If you have a workplace pension, and most working people do, you’re already an investor. Every month your pension is being invested in businesses, infrastructure and projects that help power the UK economy.”
Gen Z Leading the Charge
The research also shows that younger generations are more eager to learn about investing, with 85 percent of Gen Z keen to improve their knowledge, compared to just 38 percent of Baby Boomers. Those afraid of investing would be reassured by clearer information (55 percent), simpler platforms (49 percent), and better financial education (49 percent). Moreover, 83 percent of Gen Z and 63 percent of all adults believe that seeing where their money is invested would make them more likely to invest.
Current Investment Trends
Despite 62 percent of Gen Z feeling scared or daunted about investing, 28 percent currently hold cryptocurrency investments. The typical adult invests in stocks and shares (38 percent) and real estate (17 percent). Lauren Thorpe, a 28-year-old charity worker from Sheffield, is an example of a Gen Z investor. Earning £30,000 a year, she started investing three years ago after seeing TikTok and Instagram posts. Initially scared due to a lack of financial education, she began with £20 to £30 per month in a stocks and shares ISA.
Lauren now invests around £200 of her £2,000 monthly take-home pay, with a goal to retire early. She said: “My goal is to make work optional by 45 to 50. I think a lot of people in my generation are scared of investing because we haven't had any education about it. It's fear of the unknown.”
