A recent poll conducted among 2,000 adults in the UK has revealed that a staggering 45% of Brits believe that investing is only meant for the super-rich and do not actively participate in it themselves. This perception appears to be widespread, with 38% of the respondents associating investing with city bankers and 21% believing it is primarily for older adults.
Daunting for many
The survey also found that nearly half of the respondents (47%) feel overwhelmed and intimidated by the idea of getting started with investing. Diving deeper into this sentiment, 40% of the participants admitted to having no clue about where or how to begin their investment journey.
Pension disinterest among women
An interesting finding from the poll is that a significant number of women in the UK have little to no interest in their pensions until they reach the age of 36 or older. Approximately one-third (32%) of the female respondents did not start actively engaging with their pensions until this stage.
Liz Fernando, Chief Investment Officer for Nest Pensions, which commissioned the research, emphasized the importance of pensions as a means of investment. She stated, "Pensions are a great way to invest your money and watch it grow over time, in the background while you work. It’s evident that there’s a lot of work to do to demystify perceptions surrounding who can enter the world of investment – it really can be for everyone."
Perception as a barrier
The results of the survey shed light on how the general perception of investing being primarily for the wealthy acts as a barrier for other individuals who would otherwise be interested in investing. A significant 49% of respondents believe that this perception discourages people from exploring investment opportunities. Furthermore, a majority of 73% feel that these opportunities should be accessible to individuals across all income levels.
Underrepresented groups
The survey identified three groups that Brits believe are most underrepresented in the investment realm. These groups include the working classes (46%), young people (34%), and ethnic minorities (29%). The findings highlight the need for greater inclusivity and diversity within the investment industry.
Fears and concerns
When it comes to reasons for not investing, fear of losing money emerged as the top deterrent, cited by 78% of respondents. Other concerns include lack of investing knowledge (52%), uncertainty about the economy (51%), and not knowing where to begin (38%).
The importance of transparency
The survey revealed that 64% of respondents believe that more people would be inclined to invest if they had clearer visibility into where their money is allocated. Additionally, 53% feel that clear and transparent information about investment options would help alleviate their concerns.
Seeking simplicity and profitability
49% of those polled expressed a desire for simpler investment platforms or tools. When it comes to pensions, 58% prioritize profitability, while 29% value investing in sustainable businesses.
Pension connection and planning for the future
The survey also explored how individuals connect with their pension plans. 44% contribute through an employment plan, while 15% contribute through a private plan. Liz Fernando emphasized the importance of understanding where one's pension is being invested, especially considering the long-term nature of these investments. She stated, "We don’t know how the world of finance will look in years to come, but we do know your future self should be grateful that you are adding to your pot."
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