๐ Vanguard: Average UK Saver Holds ยฃ17,000 More Cash Than They Need
Vanguard's new consumer research finds the average UK saver holds roughly ยฃ17,000 more in cash than necessary for emergencies and short-term needs, even as rates have fallen since their 2024 peak. Vanguard recommends keeping the greater of ยฃ2,000 or half a month's expenses for one-off costs, plus 3-6 months of expenses for income shocks, but flags that any surplus left idle risks inflation eroding its purchasing power over time. The article frames three questions for savers - why they're holding the cash, when they'll need it, and whether it could work harder elsewhere - as a path to shifting excess cash into diversified investments. For fintech and wealth platforms, this reinforces a persistent 'cash-to-invest' migration opportunity in the UK retail investing market.
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