14th October 2019
The survey of 2,000 people suggested that people in the UK are suffering from what it calls ‘investophobia’. Even though 66% of savers were aware that interest rates were below current rates of inflation, this was still not enough to encourage them to consider the stock market. More than half also said that they were aware that inflation would reduce the amount of their money in real terms, but would still not invest in the stock market – somewhat ironic as 49% said they would not invest as they were worried about losing money.
Of the 33% saying they are happier keeping their savings in cash, 29% do this because ‘it is what they have always done’. Over a quarter of people (28%) said financial products were too complicated and 25% did not think they had enough money to invest in a stocks and shares ISA.
By currently holding savings in cash, people are effectively letting their money diminish. Worryingly, the survey findings suggest the savings and investment decisions of people in the UK are driven by a fear of losing money, which may be clouding judgement when it comes to important financial decisions.
Investing does not need to be scary or complicated – it is a readily available tool that is very much worth considering it you want to make your money work harder. If you would like to discuss any of aspect of your financial planning or wealth management, please get in touch with us on 01934 875919.