Brits put off investing for fear of losing money – but playing it safe could come at a cost
- New analysis reveals1 the average Brit could be losing £683 a year in spending power by holding all their cash in savings2
- On average, people spend almost four years thinking about investing before getting started
- Almost a third (31%) are put off by fear of losing money – yet 37% believe keeping all their money as cash carries no financial risk at all
- Brits think they need more than £4,700 before they can start investing, while almost one in four (23%) say they don’t have enough money to get started
- Financial expert Kara Gammell reveals how to beat the ‘cost of doing nothing’, as MoneySuperMarket launches Investments by MoneySuperMarket
Brits could be losing £6832 a year in spending power by leaving an average of £18,061 sitting in cash savings, new analysis from MoneySuperMarket reveals.
More than one in two (52%) Brits have never invested outside their pension, while those considering it spend almost four years thinking about investing before getting started.
The research reveals that the fear of losing money is the biggest barrier, putting almost a third (31%) off investing. Yet Brits may be overlooking the risks of doing nothing, with one in three (37%) believing keeping all their long-term savings in cash carries no financial risk.
The cost of doing nothing
That preference for cash runs deep. When it comes to money they don’t expect to need in the short term, Brits are more than three times as likely to use a current account, rather than invest it, because they think it will be safer (24% vs 7%). The attachment isn’t limited to banks either, with those who keep physical cash at home reporting an average stash of around £822.
Wealth is another perceived barrier. Brits think they need an average of £4,722 before they can start investing, with almost a quarter (23%) of would-be investors believing they don’t have enough money to get started.
There’s also a perception that investing is for other people. More than one in four (27%) think it’s mainly for people who understand finance, one in five (20%) think it’s mainly for the wealthy, while one in seven (15%) simply say investing “isn’t really for people like me”.
Investment participation also differs between men and women, with one in three (32%) of men currently investing outside their pension compared with one in five (21%) of women.
Making your money work harder
But investing doesn’t necessarily require a large lump sum to make a difference over the long term. MoneySuperMarket analysis shows that someone investing £100 a month from the age of 45 could build a pot of around £80,000 by retirement3.
The potential cost of caution becomes even clearer over the longer term.
Although previous performance isn’t an indicator of future investment success, MoneySuperMarket’s analysis found that someone who invested £5000 in a medium-risk investment Vanguard LifeStrategy 60% Equity fund in 2016 could have a pot worth more than £10,000 by 2026, assuming income was re-invested and based on the fund’s historical performance4.
Kara Gammell, Personal Finance Expert at MoneySuperMarket, said: “There’s a common misconception that investing is only for people with thousands of pounds to spare. Actually though, you don’t need a lump sum to begin – you can start smaller and build your investments gradually over time.
“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.”
For those who have already started investing, beginning with a smaller amount has helped overcome that initial hurdle. One in four (25%) say realising they could start with a relatively small amount helped them take the first step, while nearly one in six (16%) found investing simpler than they expected.
For those who haven’t started investing yet, the challenge is knowing where to start. More than one in four (28%) want a simpler way into investing and clearer explanations to help build confidence (25%), and more than one in five (22%) would welcome additional educational information.
The research comes as MoneySuperMarket launches Investments by MoneySuperMarket, the low-cost investment product available through its app. The new platform aims to make investing easier to understand, more affordable and more rewarding including giving SuperSaveClub members their first three months of platform fees back as a SuperSaveClub reward.
Kara Gammell shares her top tips on getting started for those new to investing:
Three simple ways to start investing with confidence
1. Build your financial safety net first
Before you start investing, make sure you have some cash savings set aside for life’s unexpected expenses. A good rule of thumb is to keep three to six months’ worth of essential outgoings in an easy-access savings account. Having this buffer in place means you’re less likely to need to dip into your investments or sell them at the wrong time if an emergency crops up.
2. Make investing a habit
You don’t need a large lump sum to get started. Regular monthly contributions can be a great way to build your investments over time while helping you stay disciplined. By investing consistently, you’re less likely to worry about trying to time the market and can focus instead on your long-term goals.
3. Have a goal in mind
Just as you wouldn’t set off on a journey without knowing where you’re headed, it’s important to understand what you’re investing for. Whether it’s building wealth over the long term, saving for retirement or putting money aside for a future home, having a goal can help you stay focused and decide how much risk feels right for you.
Notes
1. Consumer research was conducted 2nd – 8th September 2026 by The News Generation on behalf of MoneySuperMarket. Sample of 2,000 UK adults aged 18+ weighted to be nationally representative.
2. MoneySuperMarket analysis based on £18,061 held in cash, comparing average UK CPI inflation with the average interest rate paid on household interest-bearing sight deposits between 2021 and 2025. Average CPI inflation over the period was 4.98%, compared with an average interest rate of approximately 1.20%, giving a difference of 3.78 percentage points. Sources: Office for National Statistics and Bank of England.
3. Methodology: Assuming retirement at 68, that gives 23 years of contributions. The person would pay in: £100 × 12 × 23 = £27,600
To reach roughly £80,000, the investment would need to deliver an average return of about 8% a year, compounded monthly:
£100 a month for 23 years at 8% annual growth = approximately £78,900 net of fee
4. Past performance is not a reliable indicator of future returns.
YearEnd | FundID | FundName | Return1YR | Allowance | Calculation |
31/12/2016 | 9241 | LifeStrat 60% Equity Acc | 18.27% | 5000 | 5,914 |
31/12/2017 | 9241 | LifeStrat 60% Equity Acc | 8.67% | 0 | 6,426 |
31/12/2018 | 9241 | LifeStrat 60% Equity Acc | -3.10% | 0 | 6,227 |
31/12/2019 | 9241 | LifeStrat 60% Equity Acc | 15.24% | 0 | 7,176 |
31/12/2020 | 9241 | LifeStrat 60% Equity Acc | 7.84% | 0 | 7,739 |
31/12/2021 | 9241 | LifeStrat 60% Equity Acc | 9.93% | 0 | 8,507 |
31/12/2022 | 9241 | LifeStrat 60% Equity Acc | -11.22% | 0 | 7,553 |
31/12/2023 | 9241 | LifeStrat 60% Equity Acc | 10.14% | 0 | 8,318 |
31/12/2024 | 9241 | LifeStrat 60% Equity Acc | 9.65% | 0 | 9,121 |
31/12/2025 | 9241 | LifeStrat 60% Equity Acc | 11.63% | 0 | 10,182 |
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