𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The long-awaited government advertising campaign to encourage more people to start investing has launched in the UK on Thursday – and is fronted by a squirrel named Savvy.

Announced last year, the Invest For The Future initiative will aim to get more people discussing the prospect of investing, understanding how it can help them grow long-term wealth and know when it might benefit them over continuing to keep cash savings.

The TakeTheNextStep website offers introductory reading and videos to those who want to learn more about investing, while a fleet of ‘savvy cabs’ will see taxis give people a free journey if they are open to talking about investing along the way.

Savvy the Squirrel will also appear across billboards and social media, expanding to television from the autumn.

The government-backed initiative will run for between three and five years initially and could cost up to £8-10m annually, with up to 20 financial services and investment platforms providing funding. The Financial Conduct Authority (FCA), the Money and Pensions Service (MaPS) and the Treasury are all also supporting the campaign as advisors.

Research for the campaign suggests that seven in 10 (69 per cent) people rarely or never talk about the subject, while 44 per cent of people with savings but no investments – which could equate to 10.1m savers across the UK – would be interested to learn more about investing.

Previous FCA research has indicated that around seven million adults hold more than £10,000 in cash savings and could be missing out on the benefits of investing.

Many experts agree that – depending on circumstances – between three and six months’ of essential costs should be kept as an emergency savings buffer, available as easily accessed cash. Beyond that though, people with excess cash may be significantly better off over the long term by investing.

Over several years, investing typically offers better returns than cash savings and, importantly, money kept in cash for long periods can actually lose value to the impact of inflation eroding its value.

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Investments may potentially outperform cash savings over the longer term but the value of investments can go down as well as up and people should consider the level of risk they feel comfortable with. People may also want to consider any fees when weighing up investment options.

The campaign aims to support more people in viewing investing as something for them – and that investing could be a natural “next step” from saving.

Economic Secretary to the Treasury Lucy Rigby said: “With greater awareness of the benefits of investing, more people will be able to make informed decisions about how to make their savings work harder for them.

“That will mean greater prosperity and financial resilience for households across the country and strengthened domestic capital markets, too.”

Sasha Wiggins, chairwoman of the retail investing campaign and CEO of private bank and wealth management at Barclays, said: “The UK has a strong savings culture but a significant investing gap with too many still feeling investing is not for them.”

Chris Cummings, chief executive of the Investment Association and deputy chairman of the retail investing campaign, said: “There is clear demand from millions of savers who want to do more with their money, but do not always feel confident about where to begin.”

Richard Flint, chief executive of Hargreaves Lansdown, said: “Too many people in Britain feel that investing isn’t for them. This campaign is about building confidence and awareness, so more people feel able to take that first step and make their money work harder for them.

“People won’t change their behaviour overnight but through creating an engaging and simple campaign to answer people’s questions, we hope that a traditionally dry subject will become more accessible and real.”

Sarah Pritchard, deputy chief executive of the FCA, said: “We want consumers to navigate their financial lives with confidence and invest for the future.

“This campaign is an important part of that, building the stronger investment culture we need. It sits alongside our targeted support rules which will help millions make informed decisions about their finances.”

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “This government-supported campaign is an excellent idea which could transform people’s financial lives.”

Changes were made from April 6 meaning some firms can offer targeted support to help people make better-informed decisions about what to do with their money, based on what they would recommend to those in similar circumstances.

Targeted support aims to fill the gap between people receiving general guidance and paying for individualised advice, enabling more people to make informed decisions.

In December, the FCA said at least 18 million people could be offered extra help with their investments and pensions over the next decade with the introduction of targeted support.

Opinium carried out the survey of 4,000 people across the UK in April.

James Andrews, managing editor at Smart Money People and Be Clever With Your Cash, said: “While investing has become more democratised in recent years, thanks to a wealth of digital-first investment solutions, ease of access has not mitigated its inherent risks.

“Yes, investing offers the potential for greater growth, but it also carries the risk that you get back less than you put away, especially over the short term.

“Britons should ensure they assess the full range of Isas available to them and choose what best suits their financial situation.

“Both stocks and shares Isas and cash Isas have their own benefits, and the right choice depends on individual goals. Cash Isas mean you know exactly what you have saved and are better suited to short-term financial goals.

“Stocks and shares Isas are more suited to long-term investing, where growth is more likely over time, making them appropriate for retirement planning or building wealth for later life.”

From April 6 2027, changes will mean that, while the total annual Isa allowance will still be £20,000, adults aged under 65 will be able to put away only up to £12,000 in a cash Isa, with the remaining £8,000 allowance potentially going into stocks and shares.

Savers aged 65 and over will retain the annual £20,000 subscription limit for a cash Isa.

Holly Mackay, chief executive at Boring Money, said: “We need to take investing out of the members’ clubs and into the school run, into the pub and onto our screens.”

She said that targeted support “has a vital role to play in enabling millions of cash-only savers to take the first step into investing”.

Additional reporting by PA