The confidence gap: Why isn't wealth translating into investment
This article first appeared in Professional Adviser in December 2025.
Despite an era of trading apps and global connectivity, the culture of investing has never felt more distant for many. Today, investing is accessible and simpler than ever. Yet, despite the proliferation of platforms and educational content, millions remain on the investing sidelines. As an example, in 1990, one in five people owned shares; by 2022, that figure had fallen to just one in ten.1
For those unwilling or unable to engage with a financial adviser, the rise of self-service platforms and 'robo-advice' has removed many traditional barriers. Retail investors can now buy shares, automate portfolios, and access global markets from their phones. But this ease hasn’t translated into widespread participation.
According to Barclays, 15 million UK adults hold £610bn in cash savings that could be invested2 - a staggering figure that underscores the scale of untapped potential.
So, the quandary is not 'how can people invest' but 'why don't people invest'?
The obvious explanation is a lack of financial confidence. While financial literacy initiatives have grown, they often fail to connect emotionally or practically with people. The UK's savings rate (10.9%) is higher than the US (4.5%) but lags countries like South Korea (34.9%) and Denmark (23.03%)3 where saving – and investing – are cultural norms.
But saving is not investing. And the UK’s investment culture has long been underpowered. In fact, the UK has had the lowest level of total investment among G7 countries for 24 of the last 30 years, according to the IPPR4.
Part of the problem lies in how we talk about risk. For many, investing still feels like gambling – and gambling without sufficient knowledge. That’s a perception reinforced when experiencing market volatility, like we saw when the US announced its tariffs in April. But the real risk is often invisible: the erosion of wealth through inaction. When inflation outpaces interest rates, cash savings quietly lose value.
We need to rebrand risk not as danger, but as opportunity. Investing is a way to support innovation, fund retirement, and build intergenerational wealth. It's also a way to contribute to national growth – something policymakers have been increasingly keen to encourage of late.
Following the Budget, the amount people under the age of 65 will be able to save into Cash ISAs has been cut from £20,000 to £12,000 - but reducing the Cash ISA limit won't automatically create investors. What's needed is a cultural shift – one that positions investing as a form of participation, not speculation. People need to see themselves not just as savers, but as stakeholders in the economy.
That's why FCA's Targeted Support proposals are a positive and huge step forward. By closing the gap between guidance and full, 'paid for' advice, it will create a middle ground, empowering millions to make informed choices and feel more confident about their financial future. And, in time, should build a stronger pipeline of customers who will likely need to seek the services of a financial adviser in the future.
Britain doesn't need to become a nation of day traders. But it does need to become a nation that sees investing as the norm and an opportunity, not a risk. Targeted Support is a watershed moment for the industry to step up and make a lasting impact on the financial resilience of millions of people.
This is the industry's chance to lead. By embracing Targeted Support, we can all help turn uncertainty into confidence, and savers into stakeholders. Together, we can make investing feel relevant, achievable, and aligned with people's values - strengthening both customer outcomes and the UK's long-term economic health.
