Eight out of 10 households do not invest in the stock market, according to research by Royal London.
The survey of more than 2,000 households shows people refrain from investing in the stock market because they fear market falls, and most prefer bank or building society savings or property investments.
More than 60% save most of their money in bank or building society accounts while 7% invest in property.
The survey also shows just 3% put most of their money in the stock market while only 20% said they had any investments in stocks and shares at all.
A meagre 4% would invest in the stock market if they received a £100,000 windfall while 39% would invest in property and 36% would put it in the bank.
Roger Edwards, head of marketing development at Royal London, says: "Recent stock market volatility, coupled with longer memories of the crash 20 years ago, have put people off investing in the stock market, yet research shows that medium to longer term investments in stocks and shares offers most potential for capital growth.
“IFAs have an extremely important role to play in encouraging people to invest for the longer-term in stocks and shares.”
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