This is why Britons say they don’t invest… but do their reasons stack up?

Britain is a nation of savers – but many still shy away from investing, despite the potential for better long-term returns. 

Some 61 per cent of adults with £10,000 or more to potentially invest hold all or most of their money in cash, according to the Financial Conduct Authority. 

Estimates on how many people invest in the UK vary, but a study by investment manager Blackrock at the end of 2025 put the figure at 32 per cent.

New research by Barclays suggests that reluctance is driven less by reality and more by stubborn myths. 

This is Money looks at some of these worries, and asks if they stack up. 

I’m worried I’d lose money 

A third of people worry that they would lose all their money if they invested it, according to Barclays’ survey. Out of the five worries, this is the most common. 

While no investment is risk-free, it is highly unlikely that you would lose all your money when you invest it – especially if you put your money in a diversified portfolio. 

This means your money is in tens or hundreds of different companies. 

‘When we asked consumers to imagine investing in a diversified portfolio of well‑known global companies, many believed there was a realistic chance they could lose everything,’ says Clare Francis, director of savings and investments at Barclays.

‘In reality, that would only happen if every one of those companies failed at the same time – an extremely unlikely scenario.

‘Markets do go up and down, but long‑term investing is about giving your money the opportunity to grow over time, rather than focusing on short‑term movements.’

It’s usually recommended that you only invest money that you won’t need to get your hands on for at least five years, in order to ride out market ups and downs.  

I don’t have enough money to invest 

Some 27 per cent of Britons think they don’t have enough cash to invest. 

It is important to keep some money in an easily accessible cash savings account for a rainy day, with three to six months of living expenses often recommended as a guide.

But if you have this in place, you can invest with as little as £1. 

Your returns may not be life-changing with such a small investment, but if you invest around £50 a month, your returns can add up. 

Many investment services will allow you to set up a regular monthly investment when you get paid, in a similar way to how you save. 

Francis says: ‘This is a great way to get into the habit of investing, and gives peace of mind that you’re building up that pot of money for your longer-term future. 

‘Investing regularly also means people don’t have to worry about timing the market perfectly, and it can help smooth out the impact of short‑term market ups and downs.’

Starting investing earlier in life can have real benefits, even if you only have a small amount to put aside at first, as your money has longer to hopefully grow. 

James Norton, head of retirement & investments at investment platform Vanguard adds: ‘Time is often the biggest asset. Let’s say at 20 you’re fortunate enough to be able to put aside £200 a month and earn a 5 per cent return. 

‘By the time you retire, you’d have a pot of over £390,000, most of which is the effect of compound interest.’

I prefer to keep my money in savings or cash   

Savings accounts such as Cash Isas are a safe way to keep your money and 25 per cent of Britons prefer savings accounts or cash to store their money. 

You get a guaranteed rate of return and your money should be protected if the bank goes bust. But while you can get rates of 4.6 per cent in a Cash Isa, you are far more likely to get a better return on a stocks and shares Isa over the longer term. 

Over time, your savings kept in cash will be eroded by inflation – meaning that the value of what that money could buy in real terms goes down. Investing your cash for the long term could help to avoid this. 

Norton says: ‘Given inflation, it is very hard to achieve long-term goals, like retirement, through cash savings alone. 

‘For example, if you’d invested £1,000 in global stocks 20 years ago you would have a portfolio worth about £8,000 today, accounting for inflation. Whereas if you had left that £1,000 in cash, inflation would have worn that pot down to being worth just £400’

Returns or interest on Isas are currently tax-free up to £20,000 a year. However, from April 2027, the limit will fall to £12,000 for cash Isas for savers under 65. 

If someone wanted to invest the remaining £8,000, they’d need to put it in stocks and shares. 

Investing seems too complicated 

Investing can feel daunting. It involves lots of jargon and there is a perception you might have to monitor markets all day. Some 17 per cent of people think investing is too complicated to get into, according to Barclays. 

For many people, the simplest way to invest is to put your money in an investment fund. 

These funds are essentially a ready-made portfolio, designed to bring together a diversified mix of investments into a single product so you shouldn’t need to monitor markets closely. This also provides a degree of protection in case a single business collapses. 

Norton says: ‘You don’t have to learn how to read company balance sheets, pick individual shares and don’t need a large lump sum to get started.

‘Instead, focus on four key principles. Really do take some time to work out a clear goal – for example building a house deposit, or saving for retirement or care costs – select a balanced portfolio of investments to meet that goal, and hold it for the long term, at a low cost.’

Investing platforms charge fees to use their services, often either as a flat fee per month or year or for each trade that you make. It is worth scrutinising these before signing up, as they can eat into your returns. 

This is Money has a guide to investment platforms and their fees here.  

I’m worried about investment scams  

You should always be wary of investment scams. Around 14 per cent of people say they do not invest because they are worried about this. 

Francis says: ‘Being cautious about scams is both understandable and sensible, but it shouldn’t prevent people from investing altogether. 

‘Sticking to well‑known, regulated providers and making simple checks – like using the FCA’s website to make sure that the firm promoting the investment isn’t on their warning list – can help people invest with greater confidence. 

‘With the right safeguards, staying vigilant doesn’t have to mean staying on the sidelines.’