‘Confidence gap’ found among UK savers

Seventy-two per cent of UK savers would say they are “not confident enough” to try investing their money, new research from Wealthify has revealed.

The online investment service suggested there is a “confidence gap” among the country’s savers, and revealed that 38% do not understand how investing works, while 22% find the language too confusing.

Wealthify surveyed 1,001 UK adults with more than £5,000 in savings and not investments, and found that just one in six (16%) had considered investing in the past 12 months, despite 58% having saved more since the start of the COVID-19 pandemic.

More than four in 10 (43%) of those who are not confident enough to invest said they are, however, happy with how their cash savings perform. With interest rates at a historic low, Wealthify suggested this could mean millions of people are missing out on opportunities to build their future wealth, by not engaging with other options.

Wealthify CEO, Andy Russell, commented: “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.

“We aim to inspire anyone, regardless of their background or experience, to build their wealth and the future they want. It’s why we invite people to invest from as little as £1, and why we stripped away the complexity and jargon from day one. We want to make investing easy to understand, accessible to all, and provide options that allow people to invest their money in a way that suits them.”

Elsewhere, the study showed that seven in 10 (69%) savers say they do not have any long-term savings goals, while the pandemic may be responsible for driving a short-term outlook for many – with six in 10 (59%) saying they are currently only concentrating on their day-to-day financial situation.

The online investment service also revealed that 46% of savers with no long-term saving goals are putting money away for a “rainy day”. The top drivers for people who had considered investing were low interest rates on cash savings (47%) followed by money not growing as much as they had hoped (35%).

Russell added: “The past year has been tough on everyone, including financially for many. But its important people don’t let the events of the past year have a lasting effect on how they plan to hit their future savings goals.

“Investing can open up exciting opportunities for anyone to build their wealth, so I am committed to breaking the inertia that stops people exploring their options and doing something positive for their future.”

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