A report from NatWest Group uncovers significant differences in how various age groups in Britain approach investing, revealing a notable “investment identity gap.” Younger generations show growing enthusiasm, while older cohorts often feel excluded, and middle-aged adults grapple with persistent doubts despite strong earning potential. According to the research, Gen Z stands out as the most engaged generation, with 73% either already investing or open to the idea.
In contrast, individuals over 55 are nearly three times more likely than those under 25 to believe that investing is not meant for people like them (14% compared to 5%). This highlights how perceptions of investing as an exclusive activity persist among older Britons.
Gen X, currently in their mid-40s to late 50s, faces a unique set of challenges. Although nearly half (49%) of Gen X parents report feeling more driven to invest for their children’s future than their own, this group reports the lowest overall confidence in investing.
This hesitation occurs even though they still have many years ahead to benefit from compound growth.
The research study also spotlights pressures during peak earning years. Office for National Statistics (ONS) figures indicate that people in their 40s typically earn more than any other age group.
Yet, this decade often brings the strongest psychological hurdles.
Those aged 35-44 are most prone to feeling overwhelmed by investing. Over a quarter (27%) say they would feel more at ease starting a new job than making their first investment.
Many hold misconceptions, such as needing substantial savings upfront—71% believe certain life milestones must be reached first, and this group sets the highest salary threshold (£58,678 on average) and often thinks £10,000 in savings is a minimum requirement.
On average, UK consumers make their first investment at age 34. However, more than a quarter (28%) wish they had begun before turning 25, creating nearly a decade gap between ideal and actual start times.
Regret peaks among 25- to 34-year-olds (11% express guilt for delaying), easing only later in life. Fear of errors remains the top emotional obstacle, affecting 34% of respondents.
Practical help could make a difference: 25% say better knowledge would encourage them, while 17% note that starting small would lower barriers.
In response, NatWest has rolled out a new initiative to boost confidence among potential first-time investors.
The bank partnered with TV presenter and consumer finance expert Angellica Bell to address common myths and provide approachable guidance.
The campaign aligns with broader national efforts, including the government-supported “Invest for the Future” program and new Targeted Support measures for banks.
Aroma Khan, NatWest Investment Expert, explained: Investing can seem distant for those focused on daily finances, often due to limited early exposure or assumptions about required expertise and capital.
The goal is to dismantle these views and empower individuals to assess suitability on their own terms, starting modestly—such as with a Stocks and Shares ISA—and progressing gradually.
Angellica Bell emphasized that confidence grows through action rather than perfect preparation.
Her tips include embracing initial nerves, avoiding waits for ideal timing, clarifying personal goals, rejecting “not for me” thinking, and beginning with smaller amounts than expected.
The NatWest research findings, drawn from surveys of UK adults conducted by OnePoll, underscore the value of accessible education in turning curiosity into participation. The update from the NatWest Group has concluded that as conversations around retail investing gain more positive momentum, initiatives like this aim to help more consumers secure their financial future.