New data has revealed the wealth disparity between savers and investors.
The research, by a leading wealth management firm, found that the average Brit holds nearly 66% in cash savings, although investors are typically richer, even if not on a necessarily high income. This group might include pensioners or people whose wealth derives from assets such as property or other physical possessions.
It might also draw in self-employed people who run their own business. This group might seek opportunities for investment management in Cheshire, earning primarily in dividends whilst taking a small salary. Others may draw a small income but predominantly live off large pots accrued whilst still in the workplace.
Amongst people earning up to £20,000 a year, investors were found to have wealth valued four times that of non-investors. Savers in the sub-£20,000 range were estimated to hold approximately £24,559, whilst investors in the same tier held £103,025.
People earning an annual salary of between £20,001 and £40,000 reported £133,168 in wealth as investors, which came to over three times the £40,991 held by cash savers. Amongst people on salaries over £80,000, investors held wealth of £528,118 whilst non investors a much lower £174,692, a significant difference of £353,426.
The data found that over 66% of those who had been investing for over five years felt ‘financially comfortable’ compared to 26% of non-investors. Investments have different degrees of risk and returns are never guaranteed, but unless you have a savings account with an inflation-busting interest rate, the value of your money is liable to fall over time.
