UK investors expect 9.2% annualised returns on investments despite 91% reporting a low or moderate risk tolerance, according to a new report.

Over a quarter (26%) of 1,000 investors surveyed by Fidelity said they have a low risk tolerance.

Overall 65% of investors describe their risk tolerance as moderate. Despite this, on average they expected 9.2% in annual returns on their long-term investments.

The financial services industry needs to do more to educate consumers about financial risk, according to the report.

James Carter, head of platform policy at Fidelity International, said: “Collectively, we all need to do more to educate society on risk and return. There is a place for both cash and investments in our financial lives.

"The bigger problem is that most people don’t understand financial risk. Importantly, they don’t know how the time horizon of their financial objectives affects their capacity to be exposed to investment risk and the benefit it can create.”

UK investors were more likely to identify as savers, even if they hold investments, according to the report.

Only two in five (41%) people who invest identified as “investors” rather than “savers”. This is despite nearly three in four (74%) holding a workplace pension invested in the stock market and the average value of investments (£126,010) exceeding that of cash savings (£80,609).

Over half (57%) said they would call themselves “unengaged” investors.

• Opinium surveyed 1,000 investors in February and again between 15 and 18 April on behalf of Fidelity International for its Be Invested report.