If you are reporting on the Social Market Foundation report detailed below, Tom Selby, senior analyst at AJ Bell, comments:
“This report needs to act as a wake-up call to millions of people who are using low or zero interest-paying accounts to save for the long-term. Inflation is a powerful and often unnoticed force that can rapidly erode the value of your money, and its corrosive impact must be considered by all investors.
“The risk of failing to invest is often overlooked but by not taking any risk savers are potentially missing out on tens of billions of pounds of returns. Clearly investing entirely in stocks and shares won’t be right for everyone - particularly those who have short time horizons or are approaching retirement. But all savers, regardless of how much money they have, would do well to look at the money they have saved in cash accounts and consider whether they will need it in the short-term. If not, taking at least some investment risk could help protect against the ravages of rising prices.”