Almost 16 million people have no savings, but the benefits of putting money away regularly go beyond financial gain. So what are the barriers to creating a nest egg and how can they be overcome?

Savings offer stability, especially during the current era scarred by inflation and sky-high property prices. Yet the cost of living crisis has led growing numbers to shun savings. Three in 10 UK adults – or 15.9 million people – do not have any type of savings account, an increase from about a quarter in 2020, according to The Financial Conduct Authority [pdf].

So, what holds so many back from regular saving? An income that barely covers living expenses is one reason, though it’s worth keeping in mind the cumulative power of small amounts. Even tiny sums put away regularly over years or decades can grow into a sizeable stash, given the expansive power of compound interest – with interest paid on the original sum plus the interest, mounting up over time.