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Confidence and trust are the main barriers to investing, Aviva insights reveal
A new study reveals that more than half (55 per cent) of the UK population have no investments and that a third (33 per cent) of those who do not invest say it’s because they don’t know enough about investing.
The research, by Aviva, shows that 39 per cent are put off by thinking investing is too risky and they worry that they’ll lose money, compared to leaving it in a current or savings account.
Nearly a quarter (23 per cent) lack confidence to begin investing and say they don’t know where to start, while 16 per cent find it complicated. A further 11 per cent believe you need a lot of money to start investing in the first place and 47 per cent said they don’t have any spare money to invest.
Aviva’s research showed that among those who already invest, 49 per cent agree that rate of return, or growth, are the most important factors when considering investments, followed by other considerations such as low fees and costs (39 per cent); individual risk tolerance (32 per cent); and how much of an appetite they have for riskier opportunities.
Over a quarter (28 per cent) would look at the reputation of the financial institution and over one fifth would look at their past performance record (22 per cent). Just 18 per cent think about tax relief when making their choices.
Aviva has launched a campaign designed to ‘shine a light on investments’ and give people the confidence and support they need to help them take their first or next step into investing. It said its insights show that confidence and trust are the main barriers to investing, rather than access or information, and that its campaign aims to reframe investing as something clear, accessible and reassuring, rather than overwhelming.
Donato Boccardi, head of investments, consumer wealth at Aviva said: “Investing plays a vital role in helping people grow their wealth over the long term, and we want more consumers to benefit from the opportunities it offers.
“Too many people are missing out because they believe investing is out of reach, when in reality if you start small and build gradually you can make meaningful progress. Our focus is on giving people the tools, confidence and support to take that first step and to stay invested for their future.”
Pictured: Donato Boccardi
