Twenty one per cent of UK adults say they are likely to start investing in 2026, according to the Investment Association.
Young adults seem to favour investment journeys, with more than two in five (41%) Gen Z and a third (33%) of Millennials looking to start small, regular investments next year.
However, 41% say they’re unlikely to set up investments, despite one in ten (11%) already investing on a regular basis.
The Investment Association believes this is due to overestimating how much money is needed to start investing.
“Potential investors don’t need thousands to start – with as little as £1, anyone can take the first step towards building their financial future,” said Miranda Seath, director of market insights at the Investment Association.
“Little and often investments can be a crucial first step towards building long-term savings and financial resilience.”
Finance firms unite to launch UK Retail Investment Campaign
On average, adults think they need around £41,300 to start investing, with those aged 18-30 predicting around £58,000. Only 22% know they can begin investing with less than £50, featured by most platforms as either an initial lump sum or a regular investment.
The Investment Association explained that if someone invested £50 per month into a typical global equity fund over the last five years, it would be worth £3,906 today – over £900 more than if the money had been kept in a cash savings account.
This doesn’t account for inflation, which reduces the value of cash savings over time.
Seath added: “Putting away a small amount of money each month is often a more accessible way to start investing and over time this can grow into a substantial nest egg to support your future goals.”