Only 6% of British savers are risk-takers when it comes to their investments, according to new research from Aegon, one of the world’s leading providers of life and pensions products.
The majority, 56%, said that their risk appetite is either low or zero, and they prefer minimal potential losses with modest gains. Most British savers surveyed preferred cash over equities.
These attitudes can hurt overly-cautious investors, however, as they can see their savings stagnate.
The most common reason behind this attitude to risk is a fear of making a wrong investment decision, which was cited by 26% of savers.
And 12% of British savers said they are more cautious now that they were 10 years ago – 31% of them due to nervousness about the overall state of the global economy and 24% due to concerns that there will be another financial crash. Another 19% were put off by financial losses in the past.
However, the survey also revealed that 14% said they would be open to taking a greater investment risk with the knowledge that higher returns required more risk.
Aegon investment director Nick Dixon said, “Regardless of the current turbulent political and investment landscape, failing to take measured risk is not prudent. Over the long term, reckless caution is the biggest risk of all. Our research shows that the majority of UK consumers are exposing their money to stagnation and putting their assets at risk of falling well below the rate of inflation.”
Brunsdon Financial Chairman Brian Morman echoed those words. “This just goes to show the benefit and value of qualified financial advice. Good advice can instil investors with confidence and improve their understanding of risk and return so that an investment strategy can be put in place to meet medium to long term objectives.”
Please contact your Brunsdon Financial Adviser if you’d like further information or wish to discuss your risk and investment strategy.
This information does not constitute advice or recommendation. Investments can fall as well as rise, irrespective of the level of risk chosen, and the value of an investment and any income generated from it cannot be guaranteed and can fall as well as rise as a result of market volatility. You may not get back the amount you originally invested. Brunsdon is not responsible for the content of third party websites.