Almost a third of would-be investors worry they could lose money, and nearly a quarter fear they could make the wrong decision, according to a study by MoneySuperMarket.
The research found that 23% of people feel they do not have enough money to get started, one in five find investing too complicated, and 21% worry they might suddenly need the cash.
Why people are holding off
More than a quarter of would-be investors are holding off until they have more money saved, and almost a quarter are waiting for the cost of living to come down.
There is also a belief that investing is something you can only do once you have plenty of spare cash.
The cost of doing nothing
The analysis found the average adult has £18,061 across savings, ISAs and current accounts. The difference between inflation and average savings interest between 2021 and 2025 equated to around £683 a year in lost spending power.
Kara Gammell, Personal Finance Expert at MoneySuperMarket, said: “While the value of investments can go down as well as up, holding all of your long-term money in cash can also have drawbacks if inflation - or the cost of doing nothing - reduces its spending power over time. Once you’ve got emergency savings covered, investing regularly over the longer term could help your money work harder towards your future goals.”
Potential returns over time
Analysis suggests someone investing £100 a month from age 45 could build a pot of around £80,000 by retirement, based on modelled growth, although returns are not guaranteed and capital is at risk.
