Do you identify as an investor? We need to help savers think differently to get them investing, says Fidelity’s JAMES CARTER

Despite record participation in workplace pensions and individual savings accounts (Isas), the UK is experiencing the lowest rate of retail investment in the G7.

This contradiction, between widespread involvement in investment products and low engagement with investing reveals an ‘investment identity gap’ that risks leaving millions of people unprepared for their financial futures.

We recently surveyed 1,000 UK retail investors and confirmed this divide. 

More than half of respondents were still more likely to identify as a ‘saver’ than an ‘investor’, despite 74 per cent participating in a workplace pension and 68 per cent holding a stocks and shares Isa. 

Even more striking, almost six in 10 (57 per cent) went as far as to describe themselves as ‘unengaged’.

Understanding the investment identity gap

There was a time when the idea of investing conjured up images of pinstripe suits and frantic trading-floors. 

While we’ve come a long way in breaking down those stereotypes, our research shows that many people still see investing as something for ‘someone else’.

For most of us, feeling like we don’t ‘fit the mould’ knocks our confidence – investing is no different. 

If people don’t see themselves as investors, it can have real consequences: they’re less likely to explore new financial opportunities, seek advice, or take informed steps to secure their financial future. Confidence becomes unobtainable.

Our research reveals these barriers are still widespread: nearly one in five (17 per cent) believe investing is only for professionals, around 15 per cent think it’s just for the wealthy and 12 per cent think that you need at least £50,000 in assets to be considered an ‘investor’.

Even though two in five (44 per cent) investors recognise that investing holds opportunities for everyone, regardless of income level, background or expertise, many others feel shut out. 

The perception that you need to ‘qualify’ to become an ‘investor’ creates an engagement barrier, holding people back from exploring their financial options.

This is about more than wealth or knowledge, it’s also about gaps in financial literacy and a fear of getting it wrong.

As a result, we see a strong cultural preference for cash. It feels safe – despite the risks that come with relying too heavily on cash savings, particularly over extended periods.

A reset in the approach to risk 

For decades, risk has been framed around the possibility of short-term loss and market volatility, creating fear and disengagement among savers. 

There has been little balance with the potentially greater risk of failing to meet long-term financial goals, such as saving for an adequate retirement, and protecting against inflation.

Over longer timeframes risk can be rewarded with higher returns and short-term volatility overcome, but over-investment in cash risks bearing a slow, steady path to falling short.

We need to reframe investment risk around time horizons, not just market volatility. 

This shift can help investors build resilience and avoid costly emotional decisions during turbulent times.

That means presenting a more balanced view of risk – one that not only explains what could go wrong, but what people risk missing out on if they don’t invest for the future.

Risk isn’t exclusive to investing and risk warnings should also be more prominent for cash products, informing customers about inflation and the risks of missed returns. 

We would like to see clear scope given to a more balanced approach to risk warnings, providing consumers with the tools to make well-informed, confident decisions.

We welcome the Government’s support of the industry-led review of investment risk warnings. Helping people understand both the risks and the benefits of investing is essential. 

We fully support this initiative and the wider conversation about how and where risk warnings are most effectively placed and used.

Simplification and education

While reframing how we approach risk is an important step in encouraging more people to invest, it’s not enough on its own to drive real behaviour change. 

That’s why it’s equally important to simplify, provide support and remove unnecessary complexity where possible.

Simplification can unlock engagement. Having fewer, easier-to-understand investment products, such as by consolidating the range of different Isa products, would make it easier for individuals to feel confident about the product they are choosing.

Better financial literacy is another essential piece of the puzzle. People need the right information to make informed decisions that deliver the outcomes they want. 

‘Targeted Support’ proposals, which come into effect next April, will help to address this by enabling regulated firms to offer more useful suggestions based on common customer needs.

We believe these represent a transformational step towards supporting consumers to both avoid harms and make better decisions in relation to savings, pensions and retirement. 

This should help to bridge the gap between advice and guidance, ultimately offering support and improving confidence.

Enabling the shift: from saver to investor

Reversing the UK’s investing inertia won’t happen overnight. But it starts with helping people feel confident to make a start, however small.

With clearer and supportive communication, simpler products and more balanced regulation, we can help more people see investing not as a leap into the unknown – but as a normal, necessary part of long-term planning.