Rachel Reeves, the new Shadow Chancellor of the Exchequer, has kicked off such a campaign. She hopes to motivate people to take their money out and invest it rather than letting it languish in low-yielding accounts. The pilot comes at a time when only an estimated 42% of UK adults have ever used Individual Savings Accounts (ISAs). These accounts appeal to older Americans who want safety of principle even at the expense of higher returns. Reeves hopes to get people excited about investing by providing details about different investment opportunities. She does so with a razor focus on demographics that have traditionally been underserved in this space.
The campaign will draw on the successful “Tell Sid” advertisements from the 1980s, aiming to generate enthusiasm for investing and reach those who might benefit from diversified financial opportunities. Laura Suter, director of personal finance at investment platform AJ Bell, emphasizes that making investing appealing to women is essential. Suter contends that the current investment environment creates hurdles that dissuade would-be investors, especially female investors.
“If it can get widespread coverage and enthusiasm, then it could make a difference,” – Mrs. Suter from AJ Bell.
Reeves’ initiative is music to the ears of Jema Arnold. Arnold, who is both an investor and a member of SIGnet, a network of investor groups. Arnold’s noticed that people tend to get skittish or nervous when the talk turns to making investments. She recommends opening up a less formal space for investment conversations to ease this discomfort and distraction.
“People froze up and looked awkward when I talked about investing,” – Jema Arnold.
Watch as Wendy Lanham and Laura Colucci, both divorcees and proud SIGnet members, fight for more accessible investing. They’re energetic advocates for democratizing access to investment opportunities. Lanham recounts her journey into investing, which began with purchasing a beginner’s guide and attending a conference to further her understanding. She stresses that education is the most important aspect to developing a comfort level with potential investors.
“I bought myself a book called Investing for Idiots, went to a conference, and treated it like adult education,” – Wendy Lanham.
Colucci agrees here too, arguing that education and support play crucial roles in the journey of novice investors. She likens the work of investing to that of running a marathon. She makes the case that it’s absurd to expect anyone to want to dive into investing with no knowledge and no background.
“There’s no point telling people to go and run a marathon when they’ve never run before,” – Laura Colucci.
That sentiment around the focus on ensuring investment opportunities are just more easily understandable in concrete terms is shared by Charles Stanley director Lisa Caplan. Caplan believes that financial institutions must move away from using complex jargon and intimidating imagery that can alienate potential investors. She emphasizes that inclusivity cannot be just cosmetic but needs to be substantive.
“It’s not about making your website pink. It’s about using less jargon, competitive language, and masculine imagery,” – Lisa Caplan.
The need for structural change in how investments are presented is reinforced by Carol Knight, chief executive of the Investing and Saving Alliance. Knight supports the ones that really engage, informing and sparking the interest of people in new and deeper ways. Instead, he calls for genuine relationships and connections instead of flashy approaches to capture eyeballs.
Anna Bowes, a savings expert at the Private Office, warns that these changes need to be introduced with great care. She cautions that if not done well, efforts can scare away a new generation of potential investors instead of attracting them.
“This needs to be done very carefully or it could put off a generation of investors,” – Anna Bowes.
The involvement of women like Arnold, Colucci, and Lanham highlights the importance of peer support in navigating the world of investments. If their experiences prove anything, it’s the influence these community conversations can have. These discussions can create excitement and increase confidence among those who may feel intimidated to begin investing.
As the campaign unfolds, it remains to be seen whether Reeves’ initiative will foster a significant shift in investment culture across the UK. Guarded by billions of adults sitting on cash ISAs returning next to nothing, the call couldn’t be more timely. The goal is clear: to empower individuals to take control of their financial futures through informed investment choices.