Recent research suggests that adults in the UK could be losing out on a combined £100 million a year by not investing their savings, as it found that 25 per cent only leave cash in their current account and 14 per cent do nothing with their savings at all.
According to the Centre for Economics and Business Research (CEBR), if the estimated 7.4 million adults who do not invest their savings placed just £83 per month, equating to £1000 per year, in a fixed rate Individual Savings Account (ISA) at 1.43 per cent, then their potential combined earnings could exceed £100 million a year.
According to the research, the main reason why people have not been doing is this is because there has been a lack of monetary confidence among UK adults, with fewer than half those polled saying they felt comfortable with making financial investments.
Moreover, separate research has found that more people keep their spare cash in a jar than in an investment ISA. Even more shockingly, more than 60 per cent of respondents said they would not last the year with their savings if they lost their income, and only 42 per cent said they were able to save anything at all every month.
However, the start of the financial year is a good time for people to revisit their savings routine. As one commentator remarked, saving is the first step in developing healthy money habits, and if more people had the confidence to do so, they would be able to experiment with diversifying their savings into investments, such as stocks and shares ISAs.
To find out more about how Kirk Newsholme Financial Planning can help, please contact Richard Leonard at Richard.Leonard@knfp.co.uk or by calling 0113 204 4215.