Households across the UK, Germany and Italy who have kept their savings in cash rather than investing 50% have forgone £1trn (€1.16trn) in collective wealth over the past decade, according to new research from Invesco and the Centre for Economics and Business Research (Cebr).
The analysis of 6,000 investors and savers across the three markets found that if households had invested half of their annual savings into a globally diversified portfolio between 2015 and 2025, they could have generated an additional €526bn (£450bn) in Germany, £385bn (€442bn) in the UK and €192bn (£164bn) in Italy.
Invesco and the Cebr noted millions of retail investors lack the confidence to invest, despite digital platforms, ETFs and streamlined onboarding making investing increasingly accessible. The main barrier to investing is savers’ concerns about losing money, which outweighs other obstacles such as a lack of knowledge and affordability concerns.
Among savers interested in investing, concerns about losing money outweigh both a lack of knowledge and affordability concerns as barriers to participation. The research suggests that fear of loss, low confidence in financial decision-making and a lack of trust in financial markets and institutions are now the primary obstacles preventing savers from becoming investors.
The research suggested that providers who can address barriers such as fear of loss, low confidence in financial decision-making and a lack of trust in financial markets and institutions through more personalised and reassuring investment experiences are best placed to turn interested savers into long-term investors.
Sonia Bainbridge, head of digital distribution EMEA at Invesco, said: “For more than a decade, the industry has focused on improving access to investing through digital platforms, lower-cost products and simpler onboarding. Yet despite these advances, millions of consumers still remain in cash.
“Our research suggests the challenge is no longer access, it’s activation. Fear of loss, low confidence and uncertainty about making the right decision continue to prevent many people from taking the first step. The opportunity now is not to provide more products, but to create experiences that help people feel confident enough to act.”
