Pensions - Articles - When cash is not king

 12% of 18-34 year olds are using cryptocurrency to save for retirement (compared to the UK average of 5%). Men are twice as likely as women to be using a stocks and shares ISA to save for retirement (22% vs 12%). UK equities have consistently outperformed cash over the last 20 years, as has a standard DC pension portfolio
 
 

 
 
 Mark Futcher, Partner & Head of DC at Barnett Waddingham, comments: “It’s vital people pay attention not just to what they’re saving for retirement, but how and where too. Squirreling away money for retirement into a cash savings account might feel safe, but the reality of the inflationary environment is that it could be falling in ‘real terms’ by as much as 8% or 9%. That’s not a performance people would accept from any other asset class; risk changes over time, and equities are less ‘risky’ in the long term than the short term.

 “For those unsure where to save, there are many excellent sources of advice. Good employers will have a vested interest in your financial wellbeing; it’s worth speaking to them about accessing financial guidance. Alternatively, financial advisers, money advice charities, and Government initiatives like Money Helper can help point people in the right direction.”