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 think tank has urged the government to do more to inform and encourage savers about diversifying their savings and investments, as the figures suggest many are devaluing the money they’ve worked hard to put away, thanks to high inflation and low interest rates. More worryingly, the report reveals that more than 14 million working adults in the UK are not saving whatsoever and that more than 26 million have inadequate pension savings.
Everyone needs told hold cash in the bank for rainy days and day to day expenditure – you don’t want to have to dip into your investment when the boiler needs replacing. For each person this amount will be different – some prefer or need a larger cash buffer than others.
£94bn lost by holding money as cash
Cash returns are woeful at the minute and stock market investments should be considered for the medium to long term.
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