A strong majority (77%) of Brits currently save in cash rather than investing and the amount of cash people hold has increased in the last year, according to a YouGov survey commissioned by BlackRock.
Over three-quarters (77%) of the British public are saving in cash or in a deposit account instead of investing their money. More than a third (36%) of people also hold a larger amount of cash than they did 12 months ago.
The survey found multiple reasons as to why the public is not keen to invest their money, with only 13% of people actively making changes to their investments compared with almost six in ten (59%) who are not making any changes.
- Over two-thirds (69%) of Brits are pessimistic about the UK economic outlook for the next six months
- Nearly six in ten (58%) people are unwilling to take any risks with their money
- Only one third (33%) believe the stock market offers the most attractive investment opportunities
Public eager to increase financial knowledge
A strong majority (72%) of people are interested in increasing their level of financial knowledge, however, only one in five (21%) Brits are currently seeing a financial adviser and just over a third (35%) of people are willing to pay for advice.
- Over six in ten (61%) use the internet to increase their financial knowledge
- A third (33%) of the public rely on their partner for financial advice
- Just over one in five (21%) employ a financial advisor
Alex Hoctor-Duncan, Head of EMEA retail at BlackRock, said: “Three out of four people (77%) are saving in cash, but many do not understand how inflation can erode savings, or the necessity of saving early and often. It is important that the industry pulls together and encourages people to look beyond cash, learn to understand risk once again, and look at new ways of investing. Only by doing so might people be able to get close to securing the financial future they hope for.”
BlackRock provides investment management, risk management and advisory services for institutional and retail clients worldwide.
