A survey of 2,000 adults found worries about losing money, economic uncertainty and confusing jargon are putting people off – even though most already invest through a pension
Half of Brits worry about investing their money, due to concerns about losing it, wider economic uncertainty and being overwhelmed by jargon. A poll of 2,000 adults found 30% describe their knowledge of investing as “bad”, while 37% think it is only for the “super rich”.
Many also feel investing is mainly something high-net-worth individuals and City bankers do. As a result, 55% said that perception acts as a barrier for others getting started. Despite this, 83% of those surveyed said they have a pension – but 58% of them are not aware of the investment options available through it.
The findings come as the FTSE has reached record highs, and amid reports the amount that can be saved tax-free in a cash ISA each year could fall from £20,000 to £12,000 for under-65s.
Commissioned by workplace pension scheme Nest, the research found 74% believe it’s important that people on all income levels have access to investment opportunities. The groups seen as most underrepresented when it comes to investing were people who identify as working class (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. So while you’re saving for your own future, your pension is also helping support jobs and growth across the UK.
He added: “Nest was set up so everyday workers had somewhere good to save for their retirement. We’ve continued our Everyday Investor campaign because we wanted to show people that investing isn’t something separate, scary or exclusive.”
The research found 85% of Gen Z are keen to learn more about investing, compared to 38% of Baby Boomers. But 83% of Gen Z – and 63% of adults overall – said being able to see where their money is going would make them more likely to invest.
Those worried about investing said they would feel more confident with clearer information, simpler platforms and tools, and more education and resources to improve financial knowledge.
Despite 62% of the youngest generation saying they have felt scared or daunted when considering investing, 28% said they currently have a cryptocurrency investment, according to OnePoll. Across adults overall, 38% said they have investments in stocks and shares, and 17% in property.
One Gen Z respondent, 28-year-old charity worker Lauren Thorpe, said she was inspired to invest after seeing posts on TikTok and Instagram. With no financial education at school, she said she was scared at first, but started putting £20 to £30 a month into a stocks and shares ISA.
Lauren, from Sheffield, previously worked as a teacher for six years and earns £30,000 a year. She started investing three years ago, found Friends That Invest, bought a book on the subject, and made her first investment in March 2023 into the S&P 500 – an index fund tracking 500 of the biggest companies in the US.
She now puts around £200 of her £2,000 monthly take-home pay towards investing, with a goal of investing as much as possible in her 30s and 40s so she can retire early.
Lauren 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.
“I think a lot of people in my generation are scared of investing, because we haven’t had any education about it in school or college – it’s fear of the unknown.
“I knew my pensions were invested, but I know I have a lot more to learn about them. I changed it to a riskier portfolio because I have plenty of time to ride the ups and downs of the market.”
