As the FTSE 100 rose over 12 per cent in the last month alone, a study from online investment company invest.com reveals that almost two thirds of UK residents have not benefited from market rises as they hold no investments at all outside of their own bricks and mortar.
The results of the UK’s attitude to investing also shows that only 4 per cent of people are saving for their children’s future.
Following a poll undertaken in July of 2,000 UK residents by research company 3GEM, invest.com found that 58 per cent of people have no form of investments outside of their own bricks and mortar.
Out of the 41 per cent that do invest, only 8.7 per cent of people plan to save for their children’s future (such as helping them get on the property ladder or education), while more than 10 per cent say that their sole purpose for saving is for their next holiday. Taking all responses into account, the total number of people that are investing for their children’s future is less than 4 per cent.
The research reveals that a major reason for not investing is a lack of trust on financial professionals – 13 per cent cited this as a reason for not having any investments, whilst 21 per cent said they didn’t invest because they did not know what to invest in. A further 32 per cent felt that investing was too risky for them.
The study revealed that men are 25 per cent more likely to invest compared to women.
Ophir Gertner, co-founder of invest.com, says: “The findings from this survey paint a startling picture of attitudes to investing in the UK. Not only are so many people confused by where and how to invest, but the lack of trust in financial professionals is a worrying sign for an industry which is simply putting people off investing for their future. Our new investment platform was launched exactly with these kinds of people in mind; it’s easy to understand, is accessible for all types of investors and simple to navigate online without the need of a financial adviser.
“With the current post-Brexit uncertainty, it comes as no surprise that over 30 per cent of people see any kind of investing as too risky. However, many are not aware that there are ways of investing which doesn’t just mean you follow the stock market. Our alternative investment platform offers a way of investing which is designed not to be linked to the volatile stock market.”