The UK investment gap grew by 30 per cent over two years, according to new research by Barclays.
The bank found 15mn UK adults are now holding more than £510mn of “possible investments” in cash, a growth of 30 per cent between 2022 and 2024.
It said these figures are a “conservative estimate” based on savers who already hold more than six months’ income in cash savings.
The growth was put down to the rise in interest rates over the period which made high interest savings accounts more attractive.
Sasha Wiggins, CEO of Barclays private bank and wealth management, commented: “Investing can deliver better financial outcomes for individuals and supports economic growth.
“However, the UK’s investment gap has grown by over 30 per cent in just two years, emphasising that significant efforts are still required to transform the UK into a nation of investors.”
|
2022 |
2024 |
Percentage increase |
||
|---|---|---|---|---|
| No. of people with savings in cash | £13.21mn | £14.98mn | 13.4 | |
| Total cash savings | £762.70bn | £964.26mn | 26.43 | |
| Emergency fund total | £302.38bn | £349.97mn | 15.74 | |
| Total investable assets: | £460.33bn | £614.29mn | 33.45 |
Barclays claims the solution to this problem lies in changes to regulation and consumer support.
It said some of its recommendations, made in two other reports on the advice gap, are set to be implemented under the Advice Guidance Boundary Review.
Barclays said the pace of speed of the growth of the investment gap “reinforces the need for collective action”, including the government, regulator and industry.
Wiggins added: “In recent months, we have seen collaborative action and positive steps from regulators and policymakers — the Advice Guidance Boundary Review and the retail investment reforms announced by the Chancellor in her Mansion House speech present a unique opportunity to reshape the UK’s investment culture.
“The task now is to turn these reforms into lasting behavioural change, helping savers feel confident, supported and better able to understand risk.
“That focus on building confidence will be central to industry’s work as part of the UK’s new retail investment campaign.”
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com