Three in five (60%) of UK savers avoid investing because the see it as ‘too risky’, according to a new report.

Three quarters of the 2,000 non-investors surveyed by platform IG (72%) said disclaimers such as “Capital at risk. You may get back less than you invest” deters them from investing.

Over a third (35%) of the same non-investors said they would consider investing if warnings explained both risk and reward.

A misunderstanding of inflation risk was also stopping people from investing. Over half (51%) said they were unaware cash loses value over time due to inflation. A third (30%) said they would be more likely to move money from cash to investing if cash accounts highlighted inflation risk.

There was a lack of understanding, particularly among younger savers, of the impact of inflation on cash savings, with 11% of 18-34-year-olds believing that inflation only impacts investments, not cash.

IG called on the FCA to enforce more balanced and proportionate risk disclaimers across investment products.

Michael Healy, UK managing director at IG, said: "We urgently need to change the perception of investing so more people in the UK can benefit from the long-term wealth-building opportunities it offers. One area we can address immediately is the way we frame risk for both cash and investments.

“The government is clearly focused on this issue and we welcome the recently launched consultation. We would encourage policymakers to be brave in driving meaningful change. Cash accounts should carry the same proportionate risk warnings as investment products, highlighting the real risk that inflation can erode savings over time. We also need to balance the risks and potential rewards of investing, rather than focusing solely on fear.”

Norstat surveyed 2012 people who have never invested outside of a pension on behalf of IG in August.