Edinburgh's financial sector manages funds worth £540 billion, so why do so few Scots invest? – John Owen
A social taboo about money seems to be holding Scotland’s potential investors back
Scotland manages over half a trillion pounds for people around the world, yet many of its own savers remain wary of investing. What is holding them back?
On a summer’s morning in Glasgow, a café full of people tucked into free Portuguese pastries. The price? A chat about money. Most had plenty to say about saving. Ask about investing, though, and the conversation dried up.
The polling reflects this: just a third of Scots think investing is for someone like them. That’s not indifference though. More than 1.25 million non-investors in Scotland do want to learn more about investing, it’s just taking that first step towards investing remains a leap too far.
It would be easy to assume this is about disposable income. Of course, some households may have little left at the end of the month, especially given the current rising cost of living, and for them, building a cash buffer comes first. That's sensible. But having spare money is only part of the story.
Learning from US attitudes
Part of the answer lies in how rarely we talk about investing. Almost three in four Scots seldom or never discuss investing. It's a pattern shared across the UK, but it contrasts with countries where money is less taboo.
In the United States, for example, conversations about retirement accounts and long-term portfolios are routine, and investing is widely understood as part of planning for the future.
When a subject is rarely discussed, people are less likely to understand it or see it as relevant to them. Instead, it becomes something that ‘other people do’.
READ MORE: Half of Brits fear investing their money
So in the summer, as part of Invest for the Future – a nationwide campaign to encourage more people to consider investing – we went to Kelvingrove Café in Glasgow and swapped free pastel de natas for a chat about money with Scottish savers.
The appetite was clearly there, but nearly three-quarters say taking the plunge feels like “a big step”, and roughly one in three simply don’t know where to begin.
Their reasons for feeling investing wasn’t for them were strikingly similar to many across the UK. They are concerned about losing money and feel they lack the knowledge to begin. Many also continue to see investing as something for people with greater wealth, expertise or confidence than they have themselves.
Those concerns are understandable. Indeed, they reflect how investing has been perceived for many years.
Risk vs benefits
Many investment adverts warn that “your capital is at risk”. But when risk dominates and potential benefits receive less attention, people may conclude that investing is best avoided and remain in cash.
What is often absent from this discussion is the fact that cash carries risks of its own. A saver who placed £10,000 in the average cash ISA ten years ago would have around £8,400 in today’s money after inflation.
The same £10,000 invested in a global equity fund would have grown to more than £19,700. Cash may appear safer, but inflation can steadily erode its value over time.
The good news is that a simple conversation can make a real difference. More than a third of Scottish savers say they would feel more likely to invest after talking it through with someone they know. And when it comes to investing, Scots have more to talk about than they might think.
READ MORE: Budget 2026: Chancellor’s U-turn on ISA allowance branded ‘backward step’ by Scottish experts
A national asset
After all, Scotland has a long history as a centre for investment. Scottish fund managers have been helping finance growing industries around the world for centuries. Today, Edinburgh remains the UK’s second-largest investment hub after London, managing £540 billion, and thousands of people across Scotland work in investment management, especially in operational and technical roles.
The sector is a national asset and helps reinforce the UK’s position as a place where global capital can be managed and put to productive use.
Its influence reaches further than many people realise. Through pensions, employee share schemes and ISAs, a large proportion of Scots are already connected to investment, even if they would never describe themselves as investors.
That makes the opportunity all the more compelling. In a country recognised around the world for managing money, there is considerable scope to help the remaining two-thirds of Scots to start seeing investing as something for them. Scotland has the institutions, experience and expertise to bring investing closer to people and make it feel more accessible.
Knowledge and confidence
This matters not only for the sector but for households across the country. Many Scots are careful savers: they put money aside, plan ahead and think seriously about the future. But for too many, saving is where the journey ends.
Changing this will take time. But the aim is straightforward: to give people the knowledge and confidence to decide whether investing is right for them. That requires clearer information, honest conversations about both risk and reward, and practical guidance on how to begin. Because when investing becomes part of everyday conversation, it starts to feel more familiar and far less intimidating.
That’s the aim for the Invest for The Future campaign, launched earlier this year featuring ‘Savvy the Squirrel’. Building on the familiar idea of “squirrelling money away”, Savvy – a red squirrel, fittingly – represents a saver who has taken the next step and begun thinking about investing.
Of course, a campaign character will not remove every barrier. Investing involves risk, and it will not suit everyone. People need to understand that markets rise and fall and that money needed in the near future should remain readily available.
The objective is not to push people towards a particular decision, but to help them make that decision with a fuller understanding of their options.
John Owen is the chief executive of the Investment Association
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