As UK households navigate ongoing inflation and speculation of further tax rises, new data shows savers are stockpiling cash at unprecedented levels.
Featured in the Daily Mail, Bowmore Wealth Group’s analysis of Bank of England and ONS data reveals household savings have reached a record £2.2 trillion, a sign that consumers are prioritising short-term security amid economic uncertainty.
But as Charles Incledon, Director at Bowmore, told the Daily Mail, sitting on cash may not be the best long-term strategy:
“The returns on cash savings have improved, but over the long term, shares tend to outperform cash in both high and low inflation environments.”
The UK household savings rate hit 11% in Q1 2025, a sign that more people are holding back from investing, despite improved market conditions.
While cash can offer short-term reassurance, investing remains one of the most effective ways to preserve and grow wealth over time. For those unsure where to begin, seeking professional advice can turn passive savings into proactive planning.
Bowmore Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.
Bowmore Asset Management Ltd is authorised and regulated by the Financial Conduct Authority.