Brits held back from investing by fears of risk and lack of financial education

Nearly half (46%) of Brits believe investing is too risky, while 41% compare it to gambling, according to new research from Aviva. These perceptions, combined with gaps in financial education, could be preventing many people from taking the first step in making the most of longer-term opportunities to grow their wealth.

The findings suggest that concerns about risk remain a significant barrier to investing, despite growing awareness of the importance of saving and planning for the future. Almost three in ten (29%) people believe investing is only for wealthy individuals or requires a large amount of money to get started, reinforcing the view that investing is out of reach for many.

At the same time, the research highlights shortcomings in financial education. Almost a quarter (24%) of people say they have received no education on investing at all. Among those who have, the majority learned from family members (27%) or taught themselves using sources such as social media and AI tools (20%), rather than through formal education.

Despite these concerns, more than four in ten (43%) people say they feel confident in their knowledge of investing, rising to 66% among 25–34-year-olds. However, confidence does not always translate into understanding. Almost a quarter (23%) admit they have made an investment without fully understanding the risks involved and one in five (21%) say they have lost money because of a decision they did not fully understand.

With products such as Cash ISAs remaining popular, the findings suggest there is an opportunity to help more people understand how investing can complement saving as part of a long-term financial plan.

Alistair McQueen, Head of Savings and Retirement at Aviva, said: "It's encouraging that more people are thinking about their finances and taking an interest in investing. However, our research shows that concerns about risk remain a major barrier, with many people still seeing investing as something that's too risky, too complicated or only for the wealthy.

"A lack of financial education can make investing feel overwhelming and leave people unsure where to start. That's why access to clear, trustworthy information and guidance is so important. Helping people build their understanding can give them greater confidence to make informed decisions and take a longer-term view of their finances.

"Investing will always involve risk, but for many people it can play an important role alongside saving in helping them work towards their financial goals. The key is ensuring people have the knowledge and support they need to understand their options and make choices that are right for them."

Aviva’s guide to investing:

• Start early and invest regularly

Although 24% of 18–24-year-olds say they started investing before they were 18, the average person typically starts investing at age 31.

Putting aside smaller amounts on a regular basis can help build momentum over time. Online accounts and apps can be more engaging and help you track contributions and progress in one place.

• Focus on long-term goals

Investing is generally most successful over the longer term, helping to smooth out short-term market fluctuations. Setting clear goals, such as buying a home or saving for retirement, can help you stay focused.

• Make use of tax-efficient options

Products such as Stocks and Shares ISAs can be a straightforward and tax-efficient way to start investing.

• Understand your attitude to risk

Different investments carry different levels of risk. Online tools and guidance like Aviva’s risk profiling support, can help you understand what level of risk feels right for you.

• Spread your investments

Investing across a mix of assets can help manage risk. Ready-made or multi-asset funds can provide a simple way to diversify.

• Build your knowledge with trusted guidance

Using information from established providers and trusted financial guidance sources can help you make more informed decisions, including Aviva’s online investment hub and guidance content.

• Stay focused and avoid short-term hype

Investment trends can be tempting, but it is important to stay focused on your long-term plan and review your investments regularly.

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