Additionally, 53 per cent of non-investors said they would only consider investing if they were to come into a large sum of money or inheritance.
Pimfa said these perceptions are contributing to a cycle of non-investment which will only build inadequacies over time rather than narrow them.
A pre-existing lack of confidence in making decisions, coupled with an isolation of influence among non-investors, suggests that positive interventions are required to overcome this lack of confidence.
Both advised and non-advised (DIY) investors, and non-investors, saw value in personalisation for longer-term financial planning, with fully personalised options perceived as most likely to encourage some to start investing.
Those that had already received advice said they valued a fully tailored personal advice model (57 per cent) compared with 42 per cent of non-investors and 32 per cent of DIY investors.
Basic personalisation was the next preferred option of 40 per cent of advised investors, 34 per cent of non-investors and 56 per cent of DIY investors.
The report concludes that non-investors require targeted advice to gain confidence to act in order to make initial investment decisions.
However, Harrington said the introduction of basic personalisation for non-investors would have some, but not a substantial impact on consumer behaviour relative to the status quo where no personalisation exists.
“This means encouraging people to make active decisions about their finances requires a radical change in consumer behaviour,” he said.
“We are more positive about the impact increased personalisation could have with investors who are already somewhat engaged in making investment decisions as DIY investors as well as those who will be forced to engage when they come to decumulate as pension savers.
“It is clear to us that there is an argument to give greater thought to providing people with better targeted support when they need it most to help them achieve a better outcome.”
The research suggests that whilst the introduction of added personalisation would likely be welcome, its impact to encourage greater saving and investment will be limited.
Yet Harrington argued that these are changes which cannot be made within the current regulatory and legislative framework.
sonia.rach@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
