Poor knowledge of investment products could be holding Britons back from achieving their financial goals as new research reveals that almost 1 in 5 people have not heard of a stocks & shares ISA.

More than half (52%) of retail investors are aware of the FCA’s Sustainability Disclosure Requirement (SDR) investment labels but vague wording and jargon remain the biggest barriers to investment in sustainable funds.

Last year saw net retail fund outflows of £1.6bn, compared to much larger outflows of £26.9bn and £24.3bn in 2022 and 2023, according to data from the Investment Association.

Net retail sales of investment funds returned to positive inflows of £1.6bn in November, following the UK Budget and US election.

Retail investors pulled £2.4bn in net outflows from equities in September due to uncertainty around the Autumn Budget, according to the latest data from the Investment Association.

The Investment Association has set out a series of recommendations it hopes will ensure that reforms undertaken as part of the Government’s Pension Review deliver better retirement outcomes and support economic growth.