Barclays has warned anybody who has “all” of their money in savings. An investment expert with Barclays, one of the UK’s largest high street banks, has warned people who have stacks of cash placed into savings accounts across the country.
Clare Francis, savings and investments director at Barclays Smart Investor, told the Express about investing versus saving. She explained: “There’s a role for both but when it comes to growing your money over the longer term, stock markets tend to produce better returns than cash.
“So if you keep all your money in savings accounts, it probably won’t be worth as much in 10 years’ time as it would be if you invested some of it. However, because stock markets fall as well as rise, there is risk involved which is why it’s important to always have some money in cash.
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“Over time though, you’ll hopefully be able to ride out the stock market downturns and benefit from stronger returns overall. This is why investing can be well suited when it comes to things like saving for retirement or just a general goal of trying to grow your wealth for the future.”
She said: “Making use of your annual allowances, in particular your ISA and pension allowances, may help. Paying more into your pension will reduce the amount of income tax you pay and if you’re employed, you might even receive a higher contribution from your employer.”
Ms Francis said: “Many people feel inheritance tax is an unfair tax but if you plan ahead, you may be able to significantly reduce your inheritance tax liability and you may even be able to mitigate it completely.
“That is because there are a number of allowances and ways to help you pass your wealth onto loved ones, rather than a large chunk of it being lost to a large tax bill. This is therefore an area where it can be well worth getting professional advice.”
