The Cautious High Earners: Why ‘Self-Made’ Savers Miss Investment Opportunities
Ian Anker, 56, is a classic example of a “self-made” saver—someone who worked their way up from a modest background but remains hesitant to invest. Despite earning £54,000 a year as a management consultant, Anker only began investing in 2024, just ten years before retirement.
His story reflects a broader trend: high earners from working-class backgrounds are far less likely to invest than those raised in wealthier households.
Key Findings: The £40.7 Billion Cash Savings Gap
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1 million UK high earners come from modest upbringings (“self-mades”).
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They hold £40.7 billion in cash savings (average £40,000 per person).
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28% don’t invest at all, compared to 15% of other high earners.
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Those who invest contribute 11% of income, vs. 17% among peers.
(Source: Santander UK & Centre for Economics and Business Research)
Why Do ‘Self-Made’ High Earners Avoid Investing?
1. Lack of Early Financial Education
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Only 52% of self-mades discussed money at home (vs. 74% of other high earners).
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Just 45% consider themselves financially literate, despite 13% owning businesses.
Ian Anker’s Experience:
“We didn’t have lots of money, but we weren’t wanting. I was encouraged to save—not invest. I’ve always lived within my means, saving for emergencies and holidays instead of using credit.”
2. Fear of Risk & Uncertainty
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22% say they “don’t know where to start” with investing.
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Many prefer cash savings (even with low interest) over stocks, funds, or property.
3. Different Career Paths
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Self-mades are twice as likely to skip university for apprenticeships or work.
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Common industries: construction, skilled trades, IT (like Anker’s career path).
The Cost of Not Investing: How Much Are They Losing?
| Strategy | £40,000 Over 10 Years (5% Return) |
|---|---|
| Cash Savings (1% interest) | ~£44,200 |
| Invested (5% avg. return) | ~£65,200 |
| Potential Lost Growth | £21,000+ |
Example assumes moderate investment returns—actual results may vary.
How Can ‘Self-Made’ Savers Start Investing?
1. Break the Mental Barrier
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Start small (£50-£100/month in low-risk funds).
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Use robo-advisors (e.g., Nutmeg, Moneybox) for automated investing.
2. Educate Yourself
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Free resources: YouTube (e.g., PensionCraft), MoneySavingExpert, Investopedia.
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Consider financial advice (some banks offer free sessions).
3. Diversify Beyond Cash
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Stocks & Shares ISA (tax-free growth).
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Pension contributions (employer matching = free money).
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Property or REITs (for passive income).
Final Thought: It’s Never Too Late to Start
Even ten years from retirement, Ian Anker is taking steps to grow his wealth. For other self-made high earners, overcoming the fear of investing could mean £20,000+ in extra retirement funds.
Are you a self-made saver? What’s holding you back from investing?
