A recent poll of 2,000 adults has revealed that half of Brits are afraid to invest their money, citing concerns about losing it, economic uncertainty, and being overwhelmed by financial jargon. The survey found that 30% of respondents rated their investment knowledge as 'bad,' while 37% believe investing is still reserved for the 'super rich.' Additionally, 33% think it is primarily for high-net-worth individuals, and 32% associate it with city bankers.
As a result, 55% feel that the perception of investing as a pursuit for the wealthy acts as a barrier for others. Despite this, 83% of those polled have a pension, but 58% are unaware of the investment options available through it. The research comes as the investment landscape changes, with the tax-free cash ISA allowance for under-65s set to drop from £20,000 to £12,000, while the FTSE index reaches record highs.
Access to Investment Opportunities
The study, commissioned by workplace pension scheme Nest, also found that 74% believe it is important for everyone, regardless of income level, to have access to investment opportunities. Among the most underrepresented groups in investing are working-class individuals (47%) and women (30%).
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 highlights that younger generations are more eager to learn about investing, with 85% of Gen Z keen to improve their knowledge, compared to just 38% of Baby Boomers. Those who are hesitant about investing would be reassured by clearer information (55%), simpler platforms (49%), and better financial education (49%).
Furthermore, 83% of Gen Z and 63% of all adults believe that if they could see where their money was being invested, they would be more likely to invest. Despite 62% of Gen Z feeling daunted by investing, 28% currently hold cryptocurrency investments, according to the OnePoll.com data. The average adult has investments in stocks and shares (38%) and real estate (17%).
A Gen Z Investor's Story
Lauren Thorpe, a 28-year-old charity worker from Sheffield, is one Gen Z who has embraced investing. Earning £30,000 a year, she started investing three years ago after seeing TikTok and Instagram posts about peers investing. Initially scared due to a lack of financial education in school, she began by putting £20 to £30 a month into a stocks and shares ISA.
Lauren now invests around £200 of her £2,000 monthly take-home pay and aims to build a £1 million portfolio to make work optional by age 45. She said: 'My goal is to make work optional by 45 to 50, meaning that I don't have to work because of my financial situation. When I reach my investment goal, I want to soft retire, where you stop the hard 9-5 graft and make your job more passion-based.'
She changed her pension to a riskier portfolio, saying: 'I have plenty of time to ride the ups and downs of the market.' Lauren's story is part of Nest's Everyday Investor campaign, which aims to show that investing is not exclusive or intimidating.
