The UK may be renowned for its cash savings but it has been a nation of investors in the past and could be again. 

Our research finds that we are at a tipping point, with seven out of ten savers planning to start investing. With the right support to bridge the confidence gap, we have a real opportunity to seize this moment and create an enduring investing culture.

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The industry is embarking on its biggest investment initiative since the Tell Sid campaign of the 1980s, but it comes against a backdrop of market uncertainty and cost of living concerns.

History offers some important lessons on how we can build and sustain investor confidence, even during tough times, to make sure that a new wave of investors is empowered to take control of their financial security for the long term.

The challenge is not only to build awareness of investing but to help people to invest in the right way — to stay diversified and disciplined and to ignore the noise that so often makes investing feel as if it is a high-stakes gamble rather than a sound savings strategy. 

In 1986 the campaign that urged ordinary savers to “tell Sid” about the chance to buy British Gas shares sparked a boom in ownership. The share of UK household assets in investments climbed steadily from 14 per cent in 1987 to a peak of 23 per cent in 1999, when it overtook cash.

It dropped back after the dotcom bubble burst and hasn’t recovered. Now cash dominates, representing more than a third of UK household assets.

Someone who invested £10,000 in global shares in 1986 and stayed invested through multiple market downturns would have more than £142,000 today. The same amount in cash would be worth £21,000. These numbers are after inflation, highlighting that while cash offers stability, its real value erodes over time.

Yet despite this compelling evidence, our research finds that nearly 6 million savers in the UK have surplus cash, adding up to a collective total of more than £200 billion. This is beyond what our analysis shows they typically require for day-to-day spending and emergency needs, and is money that could be working harder for them in the financial markets.

The industry has come a long way in making investing more accessible over the past few decades, but many still feel uneasy, overwhelmed and unsure about moving beyond cash. We can do more to overcome some of these psychological barriers by demystifying investing and making it feel emotionally reassuring.

Winning hearts and minds

First we must reframe the narrative. Investing is not a gamble, it’s an extension of sound saving, rooted in discipline and consistency. The behaviours that make us strong savers are precisely those that make for successful investors, even when the market turns turbulent. 

Many savers see investing as a coin toss, but in reality you have a nine in ten chance of winning with investing over five years — far better odds than most realise. If investing can be reframed as a natural progression from saving, more people will have the confidence to get started.

The power of diversification

The rise of investment funds since the Tell Sid era has made diversification more accessible, helping investors to spread risk and avoid the stress of picking winning stocks and avoiding losers. 

In any given year a significant number of individual shares will underperform the index. In 2025, when the global market was up about 15 per cent, more than half the companies on the index still lagged the market. Holding a fund increases your odds of owning the winners. As Vanguard’s founder Jack Bogle put it: “Don’t look for the needle in the haystack — just buy the haystack.”

Yet our research finds that the power of diversification is still underappreciated, especially among new investors. Too many make their first foray through company shares or cryptocurrency rather than a well-diversified portfolio of investments that will stand the test of time.

Staying invested pays off

The other big lesson of the dotcom boom and bust, and the many downturns before and since, is the value of ignoring the noise and staying focused on long-term goals. Trying to time the markets is invariably a losing strategy because the best and worst days typically happen close together. Timing the market does not guarantee a better outcome. 

The guidance gap

Many know they want their money to work harder but aren’t sure how to begin. With only 9 per cent of adults in the UK taking financial advice, there is a clear gap. That’s where targeted support comes in. By offering tailored guidance and personalised recommendations, it can play a crucial role in helping people to take the next step with confidence.

With the right support to get started and help to stay invested, we have what it takes to be a nation of investors. If we act now, we can improve financial security for generations to come. 
Jon Cleborne is the head of Vanguard Europe