Fidelity 1 today launches its inaugural ‘Be Invested’ report, exploring investors’ behaviours, attitudes and motivations, as well as the barriers that must be overcome to shift the UK’s mindset from short-term saving to a nation focused on long-term financial planning and investing.
Stuart Warner, Global Head of Platform Solutions at Fidelity International said: “We talk a lot about the importance of saving and rightly so. But somewhere along the way, investing seems to have been left behind. Too many people still see investing as something for ‘other people’, those with more money, confidence or expertise. Yet millions are already investors through their pensions or ISAs without even realising it.
“Fidelity’s ‘Be Invested’ report explores what’s holding investors back and what needs to change, from policy and regulation to practical support and a shift in mindset. With over £280 billion1 sitting idle in cash, we believe that with the right support and mindset shift, more people can and should be invested.”
Investors don’t identify as one
The research, based on a survey of 1,000 UK investors2, highlights a primary challenge the UK faces in building a culture of investing: most people don’t consider themselves “investors” – even if they hold investments. Only two in five (41%) people who invest identify as “investors” rather than “savers”.
This is despite nearly three in four (74%) holding a workplace pension invested in the stock market, and the average value of investments (£126,010) exceeding that of cash savings (£80,609). More than half (57%) would go so far as to call themselves “unengaged” investors.
Investors’ risk appetite low but expecting high-risk returns
The study also revealed a mismatch between investors’ attitudes to risk and their expected returns. More than a quarter (26%) of investors identify as having a low risk tolerance, while 65% described their approach as moderate. Yet, despite this more conservative risk appetite, they typically expect a return of 9.2% annually on their long-term investments.
How policy can support a culture for long-term investment
James Carter, Head of Platform Policy at Fidelity International, comments: “Too many people are deterred from investing because they perceive it as risky. Yet, these same individuals often take risks in other parts of their financial lives, such as taking out credit, with greater confidence.
“We welcome the government’s recent focus on encouraging more people to invest and are actively engaged with officials, alongside the regulator and industry groups, to help shape policies that deliver better long-term outcomes for consumers. While the industry can do more collectively to encourage investing, we believe policy change can play a pivotal role by establishing the right infrastructure to support a shift in culture.”
Rethinking how we talk about risk: “Collectively, we all need to do more to educate society on risk and return. There is a place for both cash and investments in our financial lives. The bigger problem is that most people don’t understand financial risk. Importantly, they don’t know how the time horizon of their financial objectives affects their capacity to be exposed to investment risk and the benefit it can create.
“Risk warnings on investment products need reform across all asset classes to focus on informing, not just warning, and empowering consumers by explaining what different types of risk mean and how taking risk can lead to better outcomes over time. Research shows that traditional risk warnings like “Capital at Risk” can put off some people from investing, but when explained in more balanced terms customers, especially women, feel more engaged.
FCA’s targeted support regime: “Our report revealed how UK investors are seeking financial information today – with many turning to internet searches, financial influencers – ‘finfluencers’ – and AI tools for investment advice. In the absence of advice, people are turning to other channels, some credible, but many unregulated and unverified.
“That’s why we welcome efforts by the FCA and government to close the advice gap and are very excited by the opportunity the proposed targeted support regime offers. This will allow flexibility for providers to engage customers at relevant points in their journey, offer suggested courses of action and support both better decision making and avoidance of a wide range of harmful actions and inactions.
ISA simplification: “The current ISA regime in the UK is too complex, with multiple product types creating confusion and limiting the potential for providers to deliver cost-efficient and innovative solutions at scale. The government has signalled plans to introduce reforms to encourage a better balance between cash and investing, improving outcomes for savers. To support this, Fidelity has proposed the creation of a single ISA with one overall annual subscription limit, allowing consumers to save and invest within a single product.
Financial education and awareness: “Better financial literacy is needed for individuals to make informed decisions that deliver the outcomes they want. Building this financial capability needs to start early, by embedding practical education within the school curriculum. But this must go hand in hand with efforts to support today’s savers. For pensions in particular, there needs to be clearer messaging on the level of contribution required to meet retirement expectations – helping to prepare people for later-life decisions. Additionally, further regulation of financial commentary on social media is needed. Currently qualified financial professionals face tight regulation, while unregulated influencers can operate more freely. There is a pressing need for greater oversight while championing trustworthy influencers to help consumers navigate this space with confidence.”
James Carter, Head of Platform Policy at Fidelity International, continues: “We hope that by working collectively with policymakers and the industry we can inform people how to save and invest sensibly. From modernising risk disclosures to implementing the FCA’s new ‘Targeted Support’ regime, we aim to encourage a more joined-up, consumer-focused approach, which we believe can help create a system that empowers investors to make confident, informed financial decisions.”
The Fidelity International ‘Be Invested’ report, including all data and insights, is available on the Fidelity International Media Centre.
1Source: Bank of England, Money and Credit March 2025 (published 1 May 2025)
2Source: Research conducted by Opinium on behalf of Fidelity International from 6-11 February 2025 among 1,000 UK investors, and 1,000 investors again from 15-18 April 2025.
