J.P. Morgan Personal Investing has released new data showing that UK savers and investors who fail to invest regularly could be missing out on thousands of pounds in potential returns. The research highlights that only 11% of adults invest on a regular basis, despite 28% recognising that regular investing is a key habit of financially successful people.
Many prioritise budgeting over investing
According to the study, many consumers are focusing on short-term financial habits such as budgeting and tracking spending, rather than establishing a regular investment routine. This trend is costing them significant long-term gains. The data indicates that more than half (56%) of investors put away up to £250 per month into their investment portfolios, but less than a quarter (23%) have automated these contributions via direct debit or similar means.
Additionally, 17% of investors admitted to investing irregularly, while 22% said they invest only in occasional lump sums. Customer data from J.P. Morgan Personal Investing shows that younger investors aged 18 to 24 are less likely than older age groups to set up automated regular investment contributions.
The cost of missing payments
J.P. Morgan analysed the past 10 years of market data to illustrate the financial impact of irregular investing. A disciplined investor contributing £100 monthly to a global tracker fund would have accumulated £23,826, nearly doubling the £12,000 they invested over the period. In contrast, an irregular investor who misses four payments per year would end with just £15,853 over the same decade.
The difference is striking: the irregular investor contributed only £4,000 less in total, yet their final amount is £3,973 lower. This gap is solely due to losing the benefits of compounding market returns. “The additional £3,973 gap is purely from losing out on the benefits of compounding market returns, highlighting the true cost of missing contributions,” the report states.
Expert advice on building wealth
Claire Exley, head of financial advice and guidance at J.P. Morgan Personal Investing, emphasised the importance of consistency. “It can sometimes feel like a cliché when people say consistency is the key to forming good financial habits. But it really is true. Good financial habits compound over time, work together and get you closer to your future money goals if you can stick to them. Regular investing is no different,” she said.
Exley noted that staying invested over the long term and investing monthly in a globally diversified portfolio has been an effective way to build wealth. She recommended setting up automatic monthly investments via direct debit to avoid missing contributions. “One easy way for investors to overcome this is by setting up an automatic monthly investment via a direct debit or other means. This removes the need to invest manually which can be easily forgotten but is a costly mistake over the long-term,” she added.
She also addressed concerns about losing control: “While some fear losing control of their finances when they automate their investment contributions, it removes the stress from actively choosing when to invest. If you are worried about an expensive month or a dip in income, you could set-up a regular investment at a lower amount and then top it up if you have extra money available to invest in the market.”
Long-term discipline over market timing
Exley concluded that building wealth is not about timing the market perfectly but about maintaining discipline. “Ultimately, building wealth over the long-term by investing isn’t about being clever or timing markets perfectly as some are led to believe. It’s about staying disciplined and maintaining good financial habits,” she said.
