Gen X stash the cash: Why you should explore safe investment options to beat inflation

Nearly two in three Brits born between 1965 and 1980 hold ‘significant’ savings in cash, new research by Just Group shows. Attitudes to investing among this group also remain more cautious. Despite the greater returns available from stocks and shares, almost half of Generation X view investing as ‘too risky.’

CASH TO THE LEFT OF ME...

Gen X are saving hard, the figures reveal, with an average of £34,114 stashed away in cash savings accounts. Having accumulated savings throughout their career, many of those in their late 40s and 50s are building solid foundations for their retirement.

However, only holding savings in cash means missing out on the potential upsides of investing. Fewer than one in three Gen X cash savers also invest in stocks, shares or mutual funds, which means their hard-earned cash continues to fall ever further behind the pace of inflation.

SAFE INVESTMENT OPTIONS FOR GEN X

Having a cash buffer for emergencies is very sensible; however, an over-reliance on cash leads to the value of your wealth being eroded. Longer-term returns have historically been more advantageous for investors (though future returns are not guaranteed), so keeping all your money in cash means foregoing these potential rewards.

On the other hand, achieving a better balance of cash and stocks can maximise your returns without taking undue risk. We can help you find the right mix of cash savings and investments, at a risk exposure that feels right for you.

Do you have too much cash? Find out more about our investment services here or schedule a free consultation with an expert independent financial adviser to discuss safe investment options for Gen X.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Your capital is at risk when investing.