The majority of adults are shying away from investing or increasing their investments, despite the threat of rising inflation, according to research by Orbis Investments.
Two thirds (66%) of people surveyed said they are not planning to invest, while 14% were unsure. Only one fifth (20%) said they were considering increasing their investments.
A lack of spare cash was the key reason (58%) most would not invest, while risky markets were cited by just over a quarter (28%) of people. Nearly one in six said they thought rising interest rates would help to boost cash savings rates.
Of those considering investing, 70% said they were planning to invest via a stocks and shares ISA wrapper.
Dan Brockleback, director UK of Orbis Investments, said: “Inflation was setting in way before shocking recent geopolitical events unfolded on the world stage. Now it is quite possible that it will become entrenched for longer and at higher levels than were being considered possible last year.
“Leaving money in cash where its value is likely to erode and hoping for banks and building societies to raise interest rates is not an option we favour.
“One way to protect the long-term spending power of your savings pot is to invest in markets and ride out the inevitable short-term volatility, although you should bear in mind that with any investment there is a risk that you will lose money.”
