Trading Strategies & Tech
More Than One in Four Britons Say Stocks and Shares Are Too Risky, Rathbones Research Finds
16 Sept 2026
New research from Rathbones suggests that misconceptions around investment risk and a lack of confidence continue to hold many UK savers back, even as younger adults show greater willingness to pursue higher returns.
15 September 2026 — More than one in four UK adults believe stocks and shares are too risky, according to new research from Rathbones, highlighting the gap between growing interest in investing and the confidence needed to manage investments effectively.
The nationally representative survey of 3,010 UK adults with at least £25,000 in investible assets found that 27% believe stocks and shares are too risky, while 28% say they lack the know-how to manage investments themselves. At the same time, almost one in three respondents, or 32%, said they would be willing to take a high level of risk in pursuit of stronger returns.
The findings come as policymakers continue to encourage more long-term investment among UK households. They also underline a persistent challenge for the financial industry: many savers recognise the potential benefits of investing, but uncertainty around risk remains a major barrier.
Cash still dominates UK savings habits
HMRC data cited by Rathbones shows how strongly UK households continue to favour cash. Around 15 million adult ISA accounts were subscribed to in 2023/24, with almost two-thirds, or 66%, funded through Cash ISAs.
Savers contributed approximately £69.5 billion to Cash ISAs during the year, more than double the £31.1 billion invested into Stocks and Shares ISAs.
Cash has benefited from higher interest rates in recent years, but Rathbones argues that many investors may underestimate the long-term effect of inflation on purchasing power.
Isabella Galliers-Pratt, Senior Investment Director at Rathbones, said:
“Risk is one of the most misunderstood aspects of investing. Many people assume that avoiding investments altogether is the safest option, but risk comes in different forms.”
She added that while cash may feel secure because its value does not fluctuate day to day, inflation can gradually reduce what that money is able to buy over time.
The point is not that cash should be avoided. Rather, Rathbones argues that both cash and investments have a role within a broader financial plan, depending on time horizon, liquidity needs and appetite for volatility.
Younger investors are more willing to take risk
The research also reveals a sharp generational divide in attitudes toward investing.
Among adults aged 30 to 44, 60% said they were comfortable taking higher levels of investment risk in pursuit of stronger returns. That compares with just 17% of respondents aged 65 to 80.
More than half of younger adults, or 53%, also said they were comfortable investing in higher-risk assets such as cryptocurrencies and venture capital trusts.
That willingness, however, is not always matched by confidence.
More than one in three younger adults, or 36%, said they lack the know-how to manage investments themselves. This suggests that younger investors may be more open to risk, but still need greater support in understanding diversification, volatility and long-term planning.
The investment confidence gap between men and women persists
Rathbones’ findings also point to a continuing gender gap in investment confidence.
Around 70% of women said they were confident managing their savings and investments, compared with 81% of men.
Women were also more likely to view stocks and shares as too risky, with 32% expressing that concern compared with 22% of men. In addition, 31% of women said they lacked the know-how to manage investments themselves, compared with 25% of men.
Rathbones says the gap has remained visible across previous waves of its research since 2024.
The findings matter because confidence can influence whether individuals move beyond cash savings into longer-term investments, even when they have the financial capacity to do so.
Investment risk is not just about market volatility
One of the more important themes in the research is the distinction between visible and less visible forms of financial risk.
Market volatility is easy to recognise because asset prices move from day to day. Inflation risk is less obvious, but it can steadily erode the real value of cash over long periods.
That difference can lead investors to treat cash as completely risk-free and equities as inherently dangerous, even though the trade-off is more complex.
Galliers-Pratt said understanding risk is not about encouraging people to take bigger chances, but about helping them understand the consequences of different financial choices over time.
For long-term savers, that distinction is particularly important. Holding too much cash may reduce short-term volatility, but it can also limit long-term growth potential.
Financial education remains a key barrier
Ruth Bussey, Investment Manager at Rathbones, said the findings show that many people still see investing as separate from saving rather than part of the same long-term financial plan.
“If we want more people to feel confident investing, financial education has to be part of the solution.”
She added that younger generations should be introduced to saving and investing concepts earlier, while adults of all ages need access to clearer information that supports informed decision-making.
The challenge for the investment industry is therefore not simply persuading people to invest more. It is helping them understand the trade-offs involved and giving them enough confidence to make decisions suited to their own circumstances.
A nation of investors still needs a nation of informed investors
Rathbones’ research suggests the UK has no shortage of appetite for better returns.
Almost one-third of respondents are prepared to take higher levels of risk, and younger investors are particularly open to assets beyond traditional savings accounts.
The problem is that willingness and understanding do not always move together.
For financial institutions, advisers and policymakers, that creates a clear priority: improving investment literacy while avoiding simplistic messages that frame cash as bad or equities as automatically better.
A more useful approach is to help savers understand how risk changes over time and how different assets can work together within a diversified portfolio.
If the UK wants to increase retail participation in capital markets, confidence may prove just as important as access.
Key findings
- 27% of respondents believe stocks and shares are too risky.
- 28% say they lack the know-how to manage investments themselves.
- 32% are willing to take a high level of risk in pursuit of higher returns.
- 19% do not know current savings interest rates or typical investment return levels.
- 60% of adults aged 30 to 44 are willing to take higher investment risk, compared with 17% of those aged 65 to 80.
- 32% of women consider stocks and shares too risky, compared with 22% of men.
- UK savers contributed £69.5 billion to Cash ISAs in 2023/24, compared with £31.1 billion to Stocks and Shares ISAs.
About Rathbones
Rathbones is a UK investment and wealth management group serving private clients, families, charities, trustees and professional partners.
The company manages £120.7 billion in client assets, including £16.3 billion through Rathbones Asset Management Limited, as of 30 June 2026. Rathbones is a FTSE 250 company with more than 3,300 employees and over 700 investment professionals across 21 offices in the UK and Channel Islands.
The survey was conducted in August 2026 by Sig Diff on behalf of Rathbones among 3,010 UK adults with at least £25,000 in investible assets.
