Over 1 in 5 Savers Still Prefer All Money in Cash
Published / Last Updated on 11/02/2022
According to research by the Openwork Partnership with over 2,000 consumers, 22% of UK savers prefer to keep all their savings in cash rather than have some in market related savings despite interest rates being low and higher inflation devaluing the spending power of their cash.
Further findings:
- A further 15% said they are happy with a balanced portfolio of cash and market investments.
- 22% said they do not consider market related investments as they do not understand them.
- 14% said they prefer to miss out on potentially higher market growth by not being invested in markets.
- 11% said they do not go where to get savings and investment advice.
- Just 9% confirmed they had benefited from higher growth by taking financial advice.
Comment
This is a real concern. We have long championed the value of professional advice and by the majority still not seeking advice, their savings will suffer with inflation devaluing their spending power.
Watch: Red Alert Cash
In a recent video, we suggested that if your savings lost 15% value in the next 2 years, you would contact your financial adviser but the reality is that is what cash savings looks exactly like it will do. This would really mean that cash is currently a medium to high risk investment.