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Gen X ‘stashes’ £100K+ in cash; avoids ‘risky’ stocks and shares

by Benefits Expert
25/03/2025
saving, cash savings, ISA, pensions
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Almost half (46 percent) of Gen X workers say investing their money in stocks and shares is “too risky” as two-thirds of them are dubbed “cash stashers”.

Research shows 63 percent of this age group has around £100,000 in savings accounts and cash ISAs. Gen X has an average of £34,114 in cash, as the research shows that 8 percent (around 673,368 people) have even more in cash with more than £100,000 easily accessible.  

The findings from Just Group, a retirement specialist and ‘GenXpert’, pointed to the large amount Gen X holds in cash, saying that they are potentially missing out on better returns. In fact, by holding so much money in cash, they face diminishing value in real-terms, the provider said. 

Just Group’s GenVoices programme surveyed more than 3,000 Gen X people (people born between 1965 and 1980), who represent around 14 million people in the UK, or about a quarter of the total working age population.

The provider said that the significant volumes of cash savings held by Gen X seem to reflect a reticence to invest in stocks and shares. Just 27 percent disagreed that putting money into stocks and shares was too risky. 

The result is that only 32 percent of Gen X with cash savings accounts also hold personal investments such as stocks and shares or mutual funds. However, 84 percent of this age group with cash savings accounts do have a pension, which is highly likely to be invested in a range of non-cash assets.

The provider said this suggests there is a potential “psychological barrier” between actively choosing to invest in stocks and shares themselves compared to allowing someone else to manage it on their behalf via a workplace pension. 

The findings have been published as reports suggest that chancellor, Rachel Reeves is exploring the possibility of reducing the annual tax-free cash ISA allowance from £20,000 to £4,000 to stimulate greater investment in the stock market. 

Stephen Lowe, group communications director at the retirement specialist, said: “Our research into Gen X demonstrates the significant cash reserves that many savers are holding with hundreds of thousands of people in this generation stashing away more than £100,000 in cash.

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“The research raises important questions around how Gen X get help to organise their savings and investments in the years before giving up work. Historically, cash tends to underperform shares and its buying power is more vulnerable to inflation. Apart from holding a cash reserve for emergencies, most Gen X should be thinking carefully whether their fondness for cash is undermining their preparation for retirement.”

There were regional variations. Gen X with cash savings in London reported having cash reserves that were significantly larger than elsewhere.

“The UK average was £34,114 but Londoners with cash savings held an average of £54,508, with around one in six (16 percent) in the capital keeping over £100,00 in cash,” Lowe said.

Other regions where Gen X held significant cash wealth were the East Midlands (£40,793) and Yorkshire & Humber (£40,292). 

At the other end of the scale, those living in Scotland had the smallest amount of cash savings at £21,844. 

“As well as being the UK’s capital city, London is also the country’s cash capital as Gen X Londoners with cash savings accounts hold over £50,000 on average,with a significant proportion having over £100,000 in cash,” Lowe said.

“It is important for anyone holding significant levels of cash savings to get help to review whether this is the best approach to meet their short, medium and long-term objectives.”

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