88% in the dark about investing for retirement

A study by IpsoFacto Investor found that 87% can afford to invest, but don’t have enough knowledge of the market.

85% do not follow what is happening to stock markets across the world and three quarters (74%) do not understand the stocks and shares market.

Additionally, 8 in 10 (83%) did not know what SIPPs were and 26% were unaware of ISAs.

Despite this, 82% of respondents said they would invest in the current climate; however 88% would not know what resources to use when researching potential investments.

David Liddell, Director from IpsoFacto Investor, said:

“With doom and gloom all around, and not just in the financial press, investors have every right to be feeling nervous. These are difficult times with big swings in market sentiment, making stock exchanges exceptionally volatile. So far this year the main UK stockmarket index the FTSE 100 has fallen as much as 11% at its lowest point but has since bounced back by 9%. This is after a difficult year for investors in 2015. At times like this it is particularly important for investors to have access to sound and sensible advice which takes a long term view. Times of maximum despair, when asset prices are cheap, can be a great time to invest.

“Getting investment right is a difficult skill – part art, part science. Nobody really knows what the short term future holds. However, there is no shortage of people trying to sell the latest fad, which it is almost always right to ignore. It is possible to stack the odds in your favour by planning and researching. Diversification, spreading your investments across different assets is vital and regular monitoring of your investment portfolio, without being obsessed with short term price moves, is also essential for successful investment.”