New research from Insignis, the leading cash management platform, shows that savers hold onto cash as a deliberate part of their financial planning rather than out of fear of the stock market. The findings challenge the notion that all cash should be redirected into equities, highlighting the diverse role cash plays in modern financial portfolios.
The report, conducted in partnership with the Private Office, surveyed 4,360 adult savers to understand how cash fits into their wealth planning. It found that a preference for cash is rarely passive. For many, it reflects a considered, emotionally informed decision, particularly during life stages such as retirement, when maintaining control and reducing exposure to risk becomes a priority.
The research shows that cash is seen as a deliberate and strategic element of modern wealth management, rather than a fallback for the financially inexperienced:
- More than half of savers (53%) cited approaching or being in retirement as their main reason for holding cash, aiming to reduce exposure to market volatility.
- Just 11% said their cash holdings were due to a lack of investment knowledge.
- Over a quarter of savers (27%) hold more than 75% of their savings in cash.
For advisers, the findings highlight the importance of recognising cash preference not as a sign of financial illiteracy, but as a personal decision. By meeting clients where they are and understanding the emotions behind their choices, advisers can build more effective strategies that balance performance with peace of mind and align with each client’s appetite for risk.
Kate Toumazi, CEO, Insignis, said:
“With £300 billion held in cash ISAs, cash remains central to how people manage their money. Often dismissed as the choice of the overly cautious, our findings show that many savers are deliberate in their approach.
“Holding cash is not simply a response to market fear. For many, it provides flexibility for major life events and longer-term planning horizons, as well as reassurance in uncertain economic times. Equity market volatility does not suit everyone’s financial planning ambitions, and framing the debate as ‘cash bad, equities good’ is, at best, a blunt instrument.”
