This is the problem we have. We are a nation that has de-risked and see that as prudent.
I do not want to criticise “individuals”, they have good advocates in Martin Lewis and others, and are right to be prudent when the world is full of predation.
But I wonder if individuals are best off taking decisions on their own , for themselves.
We used to have collective investment that helped out people as varied as miners and postal workers. Only those in the public sector get collective workplace pensions (ok I miss out Royal Mail , USS, Railpen and a few more) but my point is simple.
Left to our own devices, we seek to be prudent and de-risk our finances to a point we have no chance to benefit from the growth of the nation and of the organisations that drive that growth.
That’s not what money in a cash account is good at doing.
We grab our invested funds as soon as we can and cash them out, swapping growth for de-risked prudent cash. Except it’s not prudent or risk-free. That’s because to meet our needs in later life we need our money to grow to beat inflation and last as long as we do!
Let’s not blame individuals for being over-prudent. Instead let’s ask how we can make it easier for us all to invest for growth by encouraging each other to go for growth.