UK adults are building cash savings, but a reluctance to invest means millions may risk missing out on potential long‑term growth, new research from Scottish Friendly has found.

As part of its latest Family Finance Tracker, the Glasgow‑based mutual says many adults are “hesi‑saving”, or parking money in cash and delaying a move into investments, even when inflation can erode the value of cash over time.

In a survey of 2,000 UK adults, Scottish Friendly found that while almost eight in 10 people (77%) have a savings account, fewer than half (46%) hold a cash or stocks and shares ISA. This gap suggests that many adults are hesitant to take the next step towards investing.

More than half (57%) have not opened or started using any savings or investment products in the last three months and of that group, the same proportion (57%) notably do not hold an ISA of any kind. While investments can fall as well as rise in value and may not be suitable for everyone, this shows a large number of savers are not benefiting from tax‑efficient saving or investing options, where tax rules apply.

Hesitation is most pronounced among women and individuals in Scotland, where 60% and 59% respectively have not opened a product in the past three months, compared with 53% of men. Even Millennials, the group most likely to take action on ISAs, saw 43% staying on the sidelines by not opening products.

Among those who did act and open an ISA, cash continues to take the lead. Across the UK, 10% opened or started using a cash ISA in the past three months, compared to just 7% who opted for a stocks and shares ISA. In Scotland, that divide widens to 12% versus 7%.

When it comes to building wealth for the next generation, the pattern remains the same. Only 2% of UK respondents said they had recently started using a stocks and shares Junior ISA (JISA), compared to 3% for cash. In Scotland, the gap further widens at 3% for investment JISAs against 6% for cash.

Those who did open or start using products were most often prompted by a growing awareness of the importance of saving, cited by 29% of respondents across the UK. This rises to 30% in Scotland and 34% among women. Meanwhile, external pressures such as the cost-of-living crisis and energy price cap rises motivated 26% to engage with a financial product (21% in Scotland).

Kevin Brown, savings expert at Scottish Friendly, said: “Some hesitation around money is understandable given the uncertain economic outlook over recent times and the speed at which the picture seems to be changing week-to-week.

“Instability in the Middle East, rising energy costs and the potential knock-on impact that can have on mortgages or the price we pay for goods and services cannot be ignored.

“In that context, it’s great that saving remains a priority, showing people are thinking carefully about their finances and are considering what’s best for their money in the short and medium term. It seems that many believe sticking to cash is the safe and sensible option.

“While not guaranteed, over the long term, investments have historically provided returns that may outpace inflation. Our Family Finance Tracker shows that there is a reluctance to invest and this ‘hesi‑saving’ may be quietly holding people back from potential growth over time.

“As inflation eats away at purchasing power, money sitting in cash could lose value in real terms. For products like Stocks and shares ISAs and JISAs, time can be an important factor. Starting early, with regular sums, can compound over time into meaningful returns.

“Britons may benefit from building their understanding and confidence in investment options, and more families need help in overcoming the hesitation to put money into markets as it may well be getting in the way of turning good intentions into long‑term financial progress meaning they could be missing out.”