Why aren’t more of us investing?

Last week, I was invited to the FT’s Global Wealth Management Summit and left with one question firmly in mind: why do we have the lowest appetite for stock market investing among the G7 nations?

According to research by Abrdn, just 8% of UK household wealth is held directly in equities and mutual funds, compared with 33% in the US and an average of 14% across the other G7 countries.

So, why are so many of us reluctant to invest?

The government has explored ways to encourage greater investment, including changes to Cash ISA allowances, although the proposed reduction for under-65s has since been reversed. But policy alone won’t change attitudes. We need to tackle the barriers that are holding people back.

Research from Barclays highlights three key factors: confidence, fear and a lack of support.

Just 14% of people believe investing is ‘for people like them’. One in three say the fear of losing money puts them off, while only 13% feel encouraged to invest by friends, family or colleagues.

The scale of the opportunity is huge as almost 15 million people in the UK hold a combined £610 billion in savings that could potentially be invested.

And keeping everything in cash isn’t necessarily the safe option many assume. As Alex recently explored, inflation steadily erodes the purchasing power of money over time. Of course, investing carries risks and returns are never guaranteed. But doing nothing has a cost too.

How do we change the conversation?

It starts with making investing more accessible, stripping away the jargon and explaining the risks and opportunities in plain English.

Just as importantly, we need to normalise conversations about money and investing. People shouldn’t feel that investing is reserved for the wealthy, the financially confident or those who already understand the markets. Conversations about money should be commonplace amongst couples and families, but it still isn’t. 

We’re trying to play our part by making money conversations simpler, avoiding jargon and even helping parents talk to their children about money and build financial literacy. But there’s clearly lots more to be done.

How do we make investing feel more accessible and relevant to everyone? What needs to change to get more people taking that first step?

I’d love to hear your thoughts and ideas in the comments. We want to help be a part of the change. 

Written by Nikki Zammit

Nikki Zammit, Director and Founder, specialises in tailored wealth management and planning and helps clients to realise and deliver their current and future needs. Get in contact if you’d like to talk about your planning needs via or 07725 986666.

The information contained in this article is for general information and educational purposes only. It does not constitute personal financial advice or a personal recommendation to buy, sell or hold any investment. It should not be relied upon as the basis for making financial or investment decisions.

The value of investments and any income derived from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. The suitability of any investment will depend on your individual circumstances, financial objectives and attitude to risk.

If you are considering making an investment, you should seek professional financial advice to establish whether it is appropriate for your circumstances.