Are You a ‘Self-Made’ Saver? Why High Earners Lose Out by Avoiding Investments

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

• 1 million UK high earners come from modest upbringings (“self-mades”).

• They hold £40.7 billion in cash savings (average £40,000 per person).

• 28% don’t invest at all, compared to 15% of other high earners.

• 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

• Only 52% of self-mades discussed money at home (vs. 74% of other high earners).

• 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

• 22% say they “don’t know where to start” with investing.

• Many prefer cash savings (even with low interest) over stocks, funds, or property.

3. Different Career Paths

• Self-mades are twice as likely to skip university for apprenticeships or work.

• Common industries: construction, skilled trades, IT (like Anker’s career path).

The Cost of Not Investing: How Much Are They Losing?

Example assumes moderate investment returns—actual results may vary.

How Can ‘Self-Made’ Savers Start Investing?

1. Break the Mental Barrier

• Start small (£50-£100/month in low-risk funds).

• Use robo-advisors (e.g., Nutmeg, Moneybox) for automated investing.

2. Educate Yourself

• Free resources: YouTube (e.g., PensionCraft), MoneySavingExpert, Investopedia.

• Consider financial advice (some banks offer free sessions).

3. Diversify Beyond Cash

• Stocks & Shares ISA (tax-free growth).

• Pension contributions (employer matching = free money).

• 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?