After years of successive shocks — health-related, financial and geopolitical — headlines have persistently felt heavy. This uncertainty seems set to continue thanks to unpredictable US trade policy, competition among the great powers over critical minerals and the Iran crisis keeping a risk premium in oil. Closer to home the UK economy presents a mixed picture and sustained economic growth remains elusive.

Faced with such circumstances, many savers remain on the sidelines. Since the start of the Covid-19 pandemic UK households have amassed well over £1 trillion in savings, more than half of which is in cash. Over this period the real value of £100 in cash has fallen to £89.50. Had it been invested in global stocks it would now be worth £171. While caution is understandable emotionally, it comes at a hefty financial price. Inflation erodes purchasing power, and sitting out on rising markets can mean missing the compounding that does the heavy lifting in long‑term wealth creation.

At JP Morgan, our research into UK savings behaviour revealed that there were low levels of confidence about financial outcomes. Only 14 per cent of the population surveyed was very confident they would have the standard of living they would like in retirement. There was also a lack of financial literacy. More participants in the survey cited cash as the best long-term savings vehicle over stocks, despite all the historical evidence to the contrary.

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This is not a call to take reckless risk. It’s an argument for informed decision-making: blending UK and global equities with high‑quality bonds, using pound‑cost averaging to soften entry points, and holding liquidity for genuine short‑term needs while putting excess cash to work. For many investors, dividends from UK companies and income from gilts can play a valuable role in offsetting inflation, while targeted exposure to structural themes — energy transition, advanced manufacturing, AI‑enabled services, life sciences — backs the UK’s long‑term growth engines.

Well-designed policy can accelerate the shift from saving to investing and we commend the government for the initiatives it has introduced. Reforms to the Isa regime that continue to prioritise simplicity and investor choice, as well as improving guidance and access to financial advice, can help households to move from cash drag to productive capital. In addition, we are seeing sensible pension reform that facilitates allocation to UK assets. As the UK seeks to promote its international competitiveness, deeper capital formation at home will be just as important as attracting global capital and investment. Meaningfully mobilising domestic pools of capital into UK markets will help to finance infrastructure, clean energy, housing and high‑growth firms, supporting jobs and productivity.

The regulatory environment must also evolve, such that it becomes an enabling factor, rather than a hindrance, to delivering sustained and inclusive economic growth. The introduction of the consumer duty has rightly shifted the focus to delivering good outcomes and the Financial Conduct Authority’s continued efforts to ensure value is considered holistically is a welcome move, helping to shift the narrative away from short-termism. In the face of growing demand for private markets, well-calibrated reforms will need to achieve an appropriate balance between access and investor protection. This means clearer disclosures and appropriate liquidity design.

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Geopolitics will remain noisy. Oil will swing, tariffs may come and go, and election cycles will test nerves but uncertainty is a feature not a bug of investing. The greater risk for many households is the silent erosion of wealth from inflation‑exposed cash and the missed compounding from markets that, over time, trend higher.

The UK has the ingredients to win: deep capital markets, world‑class universities and research, leadership in services, a creative economy, and a vibrant technological sector that will be a key source of future growth. Let’s pair that with a national push for financial education, simpler pathways from saving to investing and the confidence to take measured risk.

From hereon in, the opportunity cost of fear is one the UK can ill afford.

Patrick Thomson is chief executive, Europe, Middle East and Africa, for JP Morgan Asset Management