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Misread Risk Warnings Keep UK Savers Out of Investing

A government review says stark phrases deter first-time investors.

Overview

  • Barclays' latest polling reports that 35% of savers are held back by fear of losses, with only 12% expecting to start investing next year.
  • A government-commissioned Risk Warnings Review finds the phrase “your capital is at risk” is widely taken to mean a high chance of losing money.
  • Barclays also found many people believe there is about a one-in-four chance a diversified investment could be wiped out in five years, which experts call extremely unlikely.
  • The FCA reports 61% of adults with £10,000 or more keep most of it in cash, which means many miss the higher long-term returns that investing has often delivered.
  • From April 2027 the cash ISA cap for under‑65s will drop to £12,000, and survey responses suggest some of that money will shift toward stocks and shares ISAs.