Savers find it harder to choose what stocks and shares to invest in than picking a partner or deciding to start a family, research suggests.
Nearly two in five investors say deciding where to put their money was one of hardest decisions they have ever made, according to Barclays. However, the only decision that they found to be tougher was choosing where to buy a house.
It was also revealed that 44 per cent of investors delayed taking the plunge due to a lack of knowledge of the market, while 41 per cent said losing invested money was a barrier.
Investments typically outperform cash savings over the long term, but the element of risk is an obstacle preventing savers’ hard-earned money from growing faster.
New investors will take three-and-a-half months to start after deciding to invest – but 8 per cent took more than a year to begin, delaying their money’s compound growth. A quarter of investors said the influence from loved ones spurred them into taking action.
Also having specific investment goals and taking better financial advice were major catalysts for savers, Barclays says.
Decision time: Nearly two in five investors say deciding where to put their money was one of hardest decisions they have ever made
Tax-free savings may soon need to be funnelled into certain investments as Chancellor Rachel Reeves is reportedly considering cutting the annual allowance for a cash individual savings account (Isa), down from its current £20,000..
Ms Reeves, however, has ruled out scrapping the savings vehicle altogether.
Clare Francis, of Barclays, says: ‘The long-term benefits of investing are clear, but many people are still missing out.
‘Despite the industry having made significant strides in recent years to help people get started – including the introduction of ready-made investment funds – there is still an estimated £430 billion sitting in UK savings accounts which could be invested.’
The bank is lobbying for changes to public policy as it claims current industry regulation is limiting how banks can support prospective investors.
Its demands include the development of comparison tables and a simpler sign-up service for entry-level investments.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Read More: Picking a partner is easier than picking shares, say savers