When we discuss the concept of investing money with our clients, we often find that the money that they wish to remain in savings accounts is higher than is recommended.

And they are not alone.

A new report has revealed that the UK’s working adult population has missed out on a staggering £94 billion over the past five years through failing to invest in the stock market and holding their money in savings accounts. The figure comes from public policy think tank, The Social Market Foundation, which has also found that more than £200 billion worth of cash is being held by savers above the recommended three months’ worth of income or ‘rainy day’ level of savings that should be kept available.

The arguments for remaining in cash are always the same: this can be an emotional draw, due to the liquid nature of savings accounts and the ability to ‘see’ the money, plus it is deemed as being ‘risk free’. However, interest rates remain stubbornly low and with inflation starting to move upwards, this liquid asset is continuing to lose money in real terms.

Punter Southall Focus will always consider cash as an excellent asset class, for the purpose of security or as a guarantee of capital. Put simply, it is an ideal place to hold money for a purpose. However, it very rarely offers any more than that. It is so important to consider your savings as part of your investment portfolio.

We encourage our clients to invest in a multi asset proposition, and that should include any capital in excess of your ‘rainy day fund’.

It may feel nice to have cash to hand, but how much is that really costing you?

Posted by Gary Hunt

Topics: Lifestyle

Downloads

Delivering Good Outcomes

The efficient and economic way for trustees to manage AVC schemes

discover
Governance ebook thumbnail.jpg

browse topics

Subscribe to the blog

Questions

Ask The Experts

Do you have a question you'd like us to help with?
Just fill out the form below and we will be in touch shortly.

bullseye

Financial Planning

Next Generation Financial Planning for Private Clients

discover
graph

Wealth Management

Strategic financial planning is essential in today's complicated world.  We work with you to find tailored solutions to help you achieve a secure financial future

plan
handheart

Life Assurance

Giving you the peace of mind you need to live life to the full, knowing that you and your family are all covered against life’s unfortunate events

check
house

Mortgages

Looking to make a move? Tailored, qualified advice on the range of mortgages available to you

Find out more
cogs

Pre-retirement

Our experts provide advice on tax-efficient saving for a time after work

talk to us
retirement

Post-retirement

How will your money work for you during retirement?  Our team can help you plan for your needs

learn
rocket-1

Workplace Savings

Punter Southall Aspire is a major investment and savings business that blends a strong customer focused heritage with a modern and technology-led outlook.

discover