Over one in four Britons believe stocks and shares are too risky

• Persistent misconceptions around investment risk continue to hold Britons back despite growing appetite for long-term investing, says Rathbones
• New research shows younger generations more likely to invest despite lack of understanding

 
A significant proportion of UK adults continue to perceive investing as too risky, with many admitting they lack understanding needed to invest effectively, according to new research from Rathbones, one of the UK’s leading wealth and asset management groups.

A nationally representative survey of more than 3,000 UK adults with at least £25,000 in investible assets found that more than a quarter (27%) believe stocks and shares are too risky an investment, while 28% admit they lack the know-how to manage investments themselves.

The findings come amid a Government push to turn Britain into a nation of investors.

Nearly one in five (19%) say they do not know what current savings interest rates or investment return levels are. At the same time, almost one in three (32%) say they are willing to take a high level of risk in pursuit of stronger returns.

The findings suggest that while many people recognise the importance of investing for long-term financial wellbeing, misconceptions around risk and a lack of investment confidence continue to act as barriers.

HMRC data highlights the scale of Britain’s preference for cash. Around 15 million adult ISA accounts were subscribed to in 2023/24 (latest data available), with almost two-thirds (66%) funded through Cash ISAs. Savers contributed approximately £69.5 billion to Cash ISAs during the year, more than double the amount invested into Stocks and Shares ISAs (£31.1 billion).

While cash has benefited from higher interest rates in recent years, the figures underline the extent to which many savers continue to favour cash over investing for their long-term savings.
 
Isabella Galliers-Pratt, Senior Investment Director at Rathbones, says: “Risk is one of the most misunderstood aspects of investing. Many people assume that avoiding investments altogether is the safest option, but risk comes in different forms.

“We regularly meet people from a wide range of backgrounds and wealth levels who are concerned about investment volatility yet may underestimate the impact inflation can have on the long-term purchasing power of cash savings. While cash can feel secure because its value does not fluctuate day to day, over time inflation can steadily erode what that money can actually buy.

“Understanding risk is not about encouraging people to take bigger chances. It is about helping them understand the trade-offs involved in different financial decisions and the long-term consequences those choices may have. The decision to hold large amounts of cash carries risks of its own, just as investing involves periods of market volatility.

“Cash and investing should not be viewed as competing options. Both have an important role to play within a well-structured financial plan.”
 

Younger generations embrace risk but want more guidance

 
The research suggests younger generations are increasingly willing to engage with investing but may not always feel equipped to do so.

Six in ten (60%) adults aged 30 to 44 say they are happy to take higher levels of investment risk in pursuit of stronger returns, compared with just 17% of those aged 65 to 80. More than half (53%) of younger adults also say they are comfortable investing in higher-risk assets such as cryptocurrencies and venture capital trusts.

However, willingness alone may not be enough. More than one in three younger adults (36%) say they lack the know-how to manage investments themselves, suggesting many are open to investing but would benefit from greater guidance and understanding.
 

Gender investment confidence gap persists

 
The research also points to a persistent gender investment confidence gap.

Women are significantly less likely than men to say they are confident managing their savings and investments (70% versus 81%), while almost a third (32%) believe stocks and shares are too risky compared with around a fifth (22%) of men. Women are also more likely to say they lack the know-how to manage investments themselves (31% versus 25%).

The findings are consistent with previous waves of the research. Since 2024, men have consistently reported higher levels of investment confidence, while women have remained more likely to view investing as risky and to feel less certain about managing investments independently.
 
Ruth Bussey, Investment Manager at Rathbones, says: “Many people still view investing as something separate from saving, rather than as an integral part of a broader long-term financial plan.

“If we want more people to feel confident investing, financial education has to be part of the solution. That means helping younger generations understand saving and investing from an early age, while also ensuring people of all ages have access to the information they need to make informed financial decisions. Building a nation of investors starts with building a nation of financially informed investors.”
 

Notes

Survey of 3,010 UK adults with at least £25,000 investible assets conducted in August 2026 by Sig Diff. on behalf of Rathbones.

Key findings include:

• 32% are willing to take a high level of risk to achieve higher returns.
• 28% lack the know-how to manage investments themselves.
• 27% believe stocks and shares are too risky.
• 19% do not know current investment return levels.