According to online investing firm Wealthify, nearly 40 per cent of those surveyed said they do not understand how investing works, while 22 per cent find the language confusing
More than 70 per cent of people with savings are not confident enough to take the plunge with investments, fresh findings suggest.
Only one in six people with £5,000 or more in savings considered investing in the stock market in the past year, despite nearly 60 per cent having saved more since the start of the pandemic, according to online investing firm Wealthify.
Nearly 40 per cent surveyed said they do not understand how investing works and 22 per cent find the language too confusing, the research shows.
Despite interest rates being low and failing to beat inflation, over 40 per cent said they were happy with the returns they were getting on their cash savings.
Wealthify said: This could mean millions of people are missing out on opportunities to build their future wealth.
Lack of confidence about investing was most evident among ‘millennials’ and women, with both groups saying ‘not understanding the process’ led them to feel this way.
Despite the rise in accessible financial educational content in recent years, nearly 40 per cent of millennial savers surveyed said they did not know where to go to find out more about investing.
Feelings of exclusivity also remains a problem, with 54 per cent claiming they felt investing was not for people like them. Three in five said they simply wouldn’t know where to start when it came to investing options.
Nearly 70 per cent of people surveyed said they had no long-term savings goals, with more men than women claiming this was the case. But, nearly half of savers with no long-term saving goals are putting money away for a ‘rainy day’.
Andy Russell, chief executive of Wealthify said: The past year has been tough on everyone, both personally and financially for some. But it is important we don’t let that have a lasting effect on our future plans.
He added: It’s frustrating that the complicated way investing is often still explained, and the perceptions of what an investor “should” look like, are stopping so many savers exploring their options.