Barclays has announced the launch of the Investment Readiness Index, a new biannual measure designed to assess and improve the UK's investment culture. The high street bank, which operates branches in Birmingham, aims to identify where the greatest opportunities lie to boost confidence and participation in investing across the country.
Key Findings from the Index
The research reveals that 34 per cent of non-investors cite fear of losing money as a primary reason for not starting to invest. Only 12 per cent of non-investors expect to begin investing in the next year, though intent is higher among Gen Z (23 per cent), Millennials (17 per cent), and Londoners (22 per cent).
When asked about investment risk, respondents estimated a 23 per cent chance that a portfolio of well-known global companies could become worthless within five years—an outcome that is extremely unlikely. Additionally, just 14 per cent of non-investors agree that “investing is for people like me,” and only 13 per cent feel encouraged or supported to invest by those close to them.
Expert Commentary
Sasha Wiggins, CEO of Barclays Private Bank and Wealth Management, stated: “Retail investing in the UK is the lowest in the G7 and we have a real opportunity to transform investment culture—in the interest of individual financial wellbeing and long-term economic growth. Our research shows that millions of UK adults already have the building blocks needed to consider investing, yet most lack the confidence to take that first step. Closing this gap will require a shift in the UK’s attitudes towards investment risk and a more open and inclusive investment culture. We must give savers clear information, help them set realistic expectations, and build an appreciation that volatility is a normal part of long-term investing.”
Alexander Joshi, Head of Behavioural Finance at Barclays Private Bank and Wealth Management, added: “When it comes to building wealth, financial constraints matter, but behavioural barriers are often just as significant. If people believe normal market volatility means their money could be wiped out, they’ll stay in cash even when they have the foundations to begin investing. The Index makes some of these behavioural barriers visible and measurable. This can be used to help design clearer information, encourage healthier norms, and develop better decision-support so more people feel confident taking steps that could improve financial outcomes over the long term.”
Julien Lafargue, Chief Market Strategist at Barclays, commented: “Geopolitics continue to weigh on the macroeconomic outlook, creating significant uncertainty around the near-term trajectory for growth and inflation. Beyond that, there are reasons for optimism. Innovation, supported by artificial intelligence, is accelerating, real wages continue to grow across much of the developed world, and corporate profits remain near record levels. This combination of heightened volatility and supportive underlying fundamentals creates a fertile environment for investment opportunities.”
Campaign Launch
The UK’s retail investment campaign, launching this week, is described as an important step in providing support and education so that people can make informed decisions that are right for them. Barclays hopes the Index will help drive a cultural shift towards more inclusive and confident investing across the UK.
