Over a third (37%) of Brits avoid investing any of their savings, compared to 40% in 2015, even though investing has "never been easier", Columbia Threadneedle Investments has stated.

The firm’s Investor Confidence Tracker found that while the average monthly amount saved has risen from around £354 in 2015 to £480 currently, the proportion of people not investing remains "stubbornly unchanged".

Furthermore, 61% of Brits have said that investing is confusing and difficult to understand, compared to 44% in 2015.

Meanwhile, 74% would still rather choose an investment that is simple and easy to understand, than something they don’t fully understand, even if it may deliver lower returns. This compares to 68% in 2015.

Columbia Threadneedle stated that although the market has performed well over the past decade, the findings highlight that most savers remain worried about losing money and are unwilling to take any level of risk in the stock market.

Almost three quarters (74%) are concerned about losing money from investments, and in avoiding investment risk, many are ignoring the threat of inflation, which remains high and continues to erode the real value of savings over time.

Head of direct Columbia Threadneedle Investments, Ross Duncton, said: "The number of people who don’t invest in stocks and shares remains high – with little change over the last ten years. Over the same period, we’ve seen significant market growth - meaning millions of people may have missed out on potential returns, and recently high inflation has eroded the value of their cash savings.

"Regardless of any potential ISA reforms on the horizon, the key will be ensuring savers of all ages and stages feel confident when it comes to investing and have a better understanding of the benefits, alongside the risks, of long-term investing in the stock market."

In order to close the confidence gap and encourage more people to save, Columbia Threadneedle highlighted three areas that should require more focus.

These include financial education in secondary schools (70%), a simplification of how products are explained (38%) and an increase in the use of social media and blogs for investment information, with 31% of savers using these tools for guidance.

Duncton concluded: "Our research shows that there is no one silver bullet to bridge the confidence gap between cash savings and investing, but ongoing efforts to provide clear, simple, consistent and accessible guidance remains crucial. The findings also point to the importance of financial education starting at an earlier age, alongside more open conversations to help build confidence and knowledge."

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