You can’t open Professional Paraplanner this month without seeing the same headline: billions of pounds still sitting in savings accounts earning 1% or less.

It’s easy to understand why. After a decade of shocks – inflation, interest-rate jumps, and market whiplash – investors have grown cautious. But as we move towards 2026, that caution is quietly becoming costly.

 

The illusion of safety

Holding cash can feel like control. It’s visible, accessible, and seemingly “risk-free.” But when inflation averages 4%, £100,000 in a 1% savings account loses more than £9,000 of real value in three years. The line between prudence and erosion is thinner than most realise.

As advisers know, inaction is still a decision – one that can materially shape long-term outcomes.

 

Re-framing risk for clients

The challenge isn’t convincing clients to be brave; it’s helping them see that:

• Risk managed is not risk ignored. Diversification, time horizons, and product design all have structure and discipline behind them.
• Cash can be purposeful. Emergency funds are essential, but anything beyond that should serve a defined objective.
• Inflation is the silent loss. Use simple illustrations to make real-term erosion visible – it often changes the conversation faster than a market forecast ever could.
• Suitability is the anchor. Every portfolio decision should still be evidenced against the client’s objectives and appetite for loss.

 

Platforms and products expanding access

The industry is also adapting. HSBC’s Model Portfolio Service (MPS) is now live on Parmenion, Nucleus, and Novia, adding to an already broad list of platforms – from Aviva and Abrdn Wrap to Transact and 7IM. Greater accessibility means it’s becoming easier for advisers to offer risk-appropriate, diversified solutions without operational friction.

Similarly, Elston’s Smoothed MPS via Aviva highlights the shift toward products that keep clients invested while reducing volatility – a useful middle ground between fear and opportunity.

 

Why this matters now

When markets wobble, “safe” often feels like the right call. But from a suitability perspective, the adviser’s role is to bring balance – to turn emotional caution into structured confidence.

That’s where disciplined advice makes its mark: evidence-based recommendations, defensible rationale, and clear communication that bridges logic and reassurance.

Because safety, when left untested, isn’t really safety at all. It’s just deferred risk in another form.

If this reflects what you’re seeing in your client conversations, I’d love to hear how your firm is approaching it. No pitch – just a shared discussion on how we can keep advice grounded, balanced, and built to last.