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Savers crave investment guarantees

Savers crave investment guarantees

Category: Investments

Updated: 11/01/2018
First Published: 18/11/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nearly half of all savers claim a guarantee that their original investment is safe would significantly reassure them when investing in the stock market or pensions, new research has revealed.

According to MetLife, 47% of savers would feel a lot more secure investing cash if their original money was protected, compared with just 11% who said a guarantee would make no difference to their investment attitude.

The research comes as the FTSE 100 continues to surge after its best quarter on record, although it remains below the level achieved in September 2008 when it started the month at 5,602.8.

Support for guarantees has climbed throughout the year, as in May, 41% of savers said they would feel a lot more secure investing if they had a guarantee that their original cash was protected.

"Fear of losing money when investing has always been one of the major motivations for savers and recent events have emphasised the risks," said Dominic Grinstead, Managing Director of MetLife, UK Branch.

"However stock market investing remains the best way to secure long term returns despite volatility and the risks of short term downturns. Investment guarantees remove the fear of losing your original investment while also offering the chance to lock in gains.

"Of course they are not free but they are certainly a price worth paying, particularly for savers who cannot afford to wait years for stock markets to recover."

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