Investing
Nearly half of Brits have never invested their money
Almost half of all UK adults, 47%, have never invested money before and have no plans to do so, new research has revealed.
This is despite internet searches for “how to buy stocks in a company” growing by 300% in the last year.
Adults aged 16 to 24 are most likely to try their hand at investing with 67% saying they have either invested their money before or are currently investing. Those aged 55 and over were the least likely, with 39% saying they have not invested money before.
The numbers are higher for women, with 54% saying they had never invested compared to 40% of men, in the study by Shepherds Friendly.
Why we don’t invest
There are many reasons why someone might not choose to invest. These can include wanting access to their money in the short term or not being comfortable with the risk involved.
One in six of those asked said they were scared of investing and 9% said the long-term commitment of investing was a turn off.
Geographically, those living in London were most likely to be investors, with 64% saying they had invested followed by Leeds, 62%, and Brighton, 56%. Those in Edinburgh were the least likely to invest, with 41% of investors followed by 44% in Cardiff.
The data was compiled by asking 2,000 people in the UK their investing habits in 2023.
Four tips to start investing
For those looking to start investing, Derence Lee, chief finance officer at Shepherds Friendly, shared the following quick tips.
- Consider opening a stocks and shares ISA: a stocks and shares ISA can allow you to invest in shares, funds, bonds, and other assets without paying capital gains tax.
- Start small: it’s a common misconception that you need a lot of money in the first place in order to start investing, you can invest as little as you like.
- Choose a strategy: before you start, consider how much money you would like to set aside for investing, as well as what your long-term goals are. There is always a risk with investing as you can get back less than what you put in, so this is also important to consider when choosing your strategy and what investments you choose to make.
- Keep regular track of your investments: for example, you could set up a Google alert for mentions of a company you’ve invested in stocks and shares at. If you’re taking a more hands-on approach, you’ll especially want to keep track of your investments value so you can decide when is a good time to sell your stocks.
