Half of Brits fear investing their money

A poll of 2,000 adults found 30 per cent went as far as to claim their knowledge of investing is ‘bad’ and 37 per cent reckon the domain is still reserved for the ‘super rich’, while others feel investing is something mostly high-net-worth individuals (33 per cent) and city bankers (32 per cent) do.

As a result, 55 per cent feel the general perception of putting money into financial schemes being primarily for the wealthy acts as a barrier for others to do the same.

Despite this, 83 per cent of those polled have a pension, but 58 per cent of them are not aware of the investment options available via it.

The insights come as the investment landscape is about to change, with the amount that can be saved in a cash ISA tax free each year falling from £20,000 to £12,000 for under 65s and the FTSE index has reached record highs.

The research, commissioned by workplace pension scheme Nest, also found 74 per cent believe it’s important that everyone from all income levels has access to investment opportunities.

Among the most underrepresented groups when it comes to investing were people who identify as working class (47 per cent) and women (30 per cent).

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, something we’ve brought to life with host of the TV show Coach Trip, Brendan Sheerin.

"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 also found youngsters are leading the charge, with 85 per cent of Gen Z keen to learn more about investing, compared to just 38 per cent of Boomers.

Those scared of investing would have their concerns eased by clearer information (55 per cent), simpler platforms or tools (49 per cent) and education and resources to improve financial knowledge (49 per cent).

But 83 per cent of Gen Zs – and 63 per cent of all adults – reckon if people could see where their money was being put it would make them more likely to invest.

Despite 62 per cent of the youngest generation having felt scared or daunted when considering investing, 28 per cent of them currently have a cryptocurrency investment according to the OnePoll.com research. Meanwhile the typical adult has some investments in stocks and shares (38 per cent), and real estate (17 per cent).

One Gen Z who is already an investor through her pension, is 28-year-old charity worker, Lauren Thorpe, who became more interested and inspired to invest further after seeing TikTok and Instagram posts from others.

Having never had any financial education in school, she was scared at first, but began putting £20 to £30 a month in a stocks and shares ISA.

Lauren, from Sheffield, South Yorkshire, who worked as a teacher for six years, then in charity work for two – currently earning £30,000 a year - started investing three years ago.

She found a company called Friends That Invest - which teaches masterclasses on investing - and bought a book on the topic, before making her first investment in March 2023 into the S&P 500 - an index fund which tracks the top 500 companies in America.

Lauren now puts around £200 of her £2,000 monthly take home pay towards investing and has a goal to invest as much of her income 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."