UK investors turn to cash savings as financial confidence plunges

Thursday, February 17, 2022 6:00 a.m.

UK investors opt for cash savings amid weakening financial confidence (Photo Illustration by Matt Cardy/Getty Images)

Britons are taking a cautious approach to investing in 2022, with the vast majority choosing to keep money in cash savings.

New data has revealed that just 43% of UK investors are confident they will emerge from the pandemic in a stronger financial position, down 10% from the previous year. With confidence falling, 76% of Britons are putting their money into cash savings, 48% are investing in stocks and shares and 31% are storing their money in property, a survey by trading platform HYCM has shown.

Looking ahead to 2022, many Britons have doubled down on their low-risk investment strategy, with 45% of investors saying they would invest more in cash, while less than a third of respondents plan to increase their exposure to equities and shares.

“The past two years have been unusual to say the least,” said Giles Coghlan, chief currency analyst for HYCM.

“With interest rates rising and inflation soaring, one would expect to see investors opting for a change of course in 2022. On the contrary, our research shows that investors have largely stuck to their guns. , as their intentions appear to be largely falling in line with 2021 trends, despite growing concerns about the strength of their portfolios,” he continued.

More than a third of UK investors said their investment strategies had been affected by the Bank of England’s decision to raise interest rates in December as expectations of further hikes dampened appetite for bonds. risky assets.

While 19% of the 815 survey respondents said they already own a cryptocurrency, only 10% of investors who are not already investing in digital assets plan to do so in 2022.

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