In the UK, Millions of UK savers could be missing out on wealth creation by holding too much cash, according to the UK´s Financial conduct authority (Not Fiat Chrysler Automobiles for those who may search the meaning from outside the UK))
There are currently 8.6 million consumers in the country who are holding more than £10,000 of investible assets in cash.
The FCA aims to reduce the number of people who could be missing out on possible investment earnings by 20% by 2025. This equates to approximately 1.7 million Brits with more than £10k in cash savings making the switch to investments.
This particular goal is part of a larger initiative that also aims to reduce the number of people who invest in higher-risk products as well as the amount of money consumers lose to investment scams.
To achieve these aims, the FCA is launching a new £11 million ‘investment harm campaign’. This will be used to promote better investment decision-making among consumers.
Is it better to invest or save?
Savings rates have been hovering around all-time lows since the global financial crisis more than 10 years ago. The coronavirus pandemic has only exacerbated the situation.
With inflation on the rise, the value of money held in many people’s savings accounts is being eroded sharply in real terms.
In this environment of low interest rates and rising inflation, investing provides consumers with a proven hedge against their money losing value. Over the long-term, stocks have historically brought investors significantly higher returns than savings accounts.
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