UK savers held back by financial literacy crisis

November 13, 2025

A new report has pointed to a widespread financial literacy gap that is preventing millions of Britons from moving beyond basic savings products and into investing.

Capital.com, the high-growth retail trading platform behind the study, said its findings show that confusion, misinformation, and lack of education remain the biggest obstacles to retail participation in the UK’s capital markets.

The research, published under the title Fear or Fortune?, surveyed 1,004 UK adults and found that eight in ten feel too nervous to invest at all.

Confidence among low-level investors – those who rely on products such as ISAs and pensions – is especially limited. Only 13% consider themselves knowledgeable about investing, with familiarity dropping sharply as products become more complex. While 88% understand traditional savings accounts, fewer than one in ten feel confident navigating stocks, ETFs, or other investment options.

Perceptions of risk also appear to be significantly skewed. Capital.com found that 92% of low-risk savers believe digital assets and other alternative assets are extremely high risk, a view broadly expected.

However, 87% also categorise listed equities – including FTSE companies – within the same risk bracket. The findings suggest that many savers are unable to distinguish between mainstream investment products and highly volatile alternatives.

Fear plays a major role too. A third of respondents (34%) cited concern over online scams as a key reason for avoiding investing altogether. Misunderstanding inflation adds another barrier.

Mid-level investors recognise the long-term erosion of savings caused by rising prices, yet low-level savers only grasp this when the concept is explained. According to Capital.com, this indicates that education – rather than lack of appetite – is the primary factor preventing more people from investing.

Capital.com CEO Rupert Osborne said, “This is fundamentally a literacy issue. We’re seeing a generation of people who want to invest, but lack the understanding to do so safely and confidently. When nearly nine in 10 can’t tell the difference between the risk of investing in FTSE-listed companies and speculative crypto assets, it’s clear the education gap is costing the economy.”