3 October 2017
Investment Services
An extensive study by Fund Management company, BlackRock, looked at the saving and investing habits of 4,000 British savers and found of the average £8,700 held in cash, one quarter (£2,270) is set aside for ‘long-term savings and investments’. In real terms, these savings had eroded by over £600 million already in the first half of this year.*
While it’s encouraging to see how much is earmarked for long-term savings and investment, there seems to be something stopping people from taking a leap away from cash and into investing. If those savers had invested their £2,270 cash into the FTSE All Share over 20 years it would be worth £8,350 now.
As part of the survey, certain ‘groups’ were identified, each having a different attitude towards savings and investments. The first, which Blackrock dubbed ‘pinched’ savers, is a ‘particularly vulnerable’ group of 6.5 million people in the UK with savings, who are least likely to feel in control of their financial futures. In fact, just one in five said they felt knowledgeable about investing. The second group – the ‘pausers’ – comprises eight million people who, while not ruling out investing altogether, said it wasn’t the right time to be moving savings out of cash. Third, are the ‘planners’ – three million savers who had ‘seriously considered’ moving some of their money and plan to do this in the next six months.
If you have a pot of money in cash and do not want to see its real value dwindle, get in touch with us on 01934 875919, and we will be happy to talk you through the investment opportunities available.
*Source: https://www.blackrock.com/uk/individual/insights/investor-pulse
