October 7, 2024
A recent report from Barclays suggests that around 13 million adult British savers could be earning more on their savings.
At least £430 billion is sitting in cash, putting savers at risk of missing out on potentially higher returns from investments.
The Barclays report highlights three key reasons why so many British savers hesitate when it comes to putting their cash into higher performing investments:
Barclays’ figures focus on people who hold more than six month’s income in their savings, and one reason given by around 25% of the 2,000+ people surveyed as part of Barclays’ research thought that investing was too complex, with around 20% reporting that they lacked the knowledge they needed to make investment decisions.
This feeling that people lack knowledge increases when extended to their research, with nearly three quarters (74%) wanting to understand more about the type of investment which best suits them, and 63% wanting help to compare products.
Nearly half (43%) of people were worried that investment would put them at risk of losing all their money, with 66% believing that the term ‘risk of loss’ meant losing all, or most, of their invested savings.
How do you decide what to do with your money?
At Talis IFA, we build long-term relationships with our clients, helping them to make confident financial decisions that put them on the path to financial freedom.
With a ‘life first, money second’ philosophy, we believe that the question about whether to invest or keep your money in cash savings is as much down to ‘why?’ as ‘how?’.
Before making recommendations, we explore financial goals and options in depth, to discover what you want your money to achieve for you.
Perhaps your savings are best left as cash savings for now – if you are saving for a deposit on a new home, or for another reason which requires fast, easy access to your cash.
On the other hand, if you are older, and accumulating savings to pass on to the next generation, there are likely to be more tax-efficient ways to preserve your wealth.
We’ll look with you at your financial plan, and recommend the most appropriate and tax-efficient options for you.
If investing is something you are interested in, we’ll help you to make decisions about when, what, and how much.
So what do people want in order to increase their investment confidence?
According to Barclays:
Barclays has made several recommendations for changes in public policy when it comes to giving UK savers the confidence to access their investment potential.
We’ll be keeping an eye on how this progresses, and you can access the full report here: The UK investment gap: £430 billion in cash savings not invested by UK adults | Barclays (home.barclays)
Take your first steps in investment
In the meantime, if you’re investment-curious, but unsure how to proceed, talking to a Talis IFA could help you to build your confidence.
Our clients value our help in making financial decisions but, more importantly, we help people understand what their money is for, and what they want it to do for them.
It could be that keeping your money in cash savings is the right decision for you. What’s important is understanding your options, and having the confidence to make choices based on knowledge and experience.
If it’s personalised information that will help you, you’ll be in the right place with a Talis IFA. Fully independent, all our recommendations come from an understanding of your specific circumstances and goals, so we can tailor our recommendations, making them personal to you.
We offer a secure online portal to give you transparency over your investments, and regular reviews to keep you fully informed and up-to-date.
The long-term relationships we build with clients offer the opportunity to expand your confidence in making financial decisions. We sit on the same side of the desk as you, looking together into the financial world and stay by your side through your journey towards financial freedom.
site by motley.co.uk