The survey found many still think investing is only for the ‘super rich’ — despite most having a pension that’s already invested.
Half of UK adults say they worry about investing their money, driven by fears of losing it, economic uncertainty and feeling overwhelmed by confusing jargon. A poll of 2,000 adults found 30% describe their investing knowledge as “bad”, while 37% believe investing is something reserved for the ‘super rich’.
Others said investing feels like something done mainly by high-net-worth individuals and city bankers. More than half (55%) said that perception acts as a barrier stopping people from investing themselves. Despite this, 83% of those polled said they have a pension — but 58% of pension holders said they were not aware of the investment options available through their scheme.
The findings come as the FTSE index has reached record highs, and amid reports the annual cash ISA allowance could be reduced from £20,000 to £12,000 for under-65s.
The research was commissioned by workplace pension scheme Nest and found 74% believe it is important that people on all income levels have access to investment opportunities. The most underrepresented groups 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.”
Younger adults were much more likely to want to learn about investing than older generations, the poll suggests. Some 85% of Gen Z said they are keen to learn more, compared with 38% of Baby Boomers. But 83% of Gen Z — and 63% of adults overall — said being able to see where their money is invested would make them more likely to invest.
Those who feel anxious about investing said they would have fewer concerns if there was clearer information available, simpler platforms or tools to use, and better education and resources to improve financial knowledge.
Despite 62% of Gen Z 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 videos on TikTok and Instagram. She said she had no financial education at school and was nervous at first, but began 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 began investing three years ago, found Friends That Invest — which offers masterclasses — and bought a book on the topic before making her first investment in March 2023 into the S&P 500, an index fund that tracks 500 of the biggest companies in the US.
She now invests around £200 from her £2,000 monthly take-home pay and hopes to invest 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.”