One in seven investors would cash in investments at loss to cover costs

Three in 10 (31%) investors would sell their investments if they needed cash to cover unexpected costs, a new study from Alliance Trust has found, with one one in seven (14%) indicating they would do so at a loss.

Alliance Trust’s findings, based on 2,000 respondents, also revealed that men were slightly more likely to do this, at 16% compared to 13% of women.

When asked where they’d turn for money if they found themselves hit with an unexpected cost, and without the cash reserves to cover it, the greatest proportion of investors would use their credit card (40%), while one in five (20%) would borrow from friends & family. A similar number (18%) would cash in their investments, but only if those investments were currently in profit.

Furthermore, those with bigger investment portfolios were typically more likely to dip into their pots for cash. One in five (20%) of those with investments between £50,001 and £100,000 would cash in at a loss. This figure fell to 19% between £20,001 and £30,000, 16% between £10,000 and £20,000, 14% between £5,001 and £10,000, and 11% under £5,000. The exceptions to this sequence were investors between £30,001 and £50,000 (12%).

Meanwhile, younger investors were found to be much more likely to cash in their investments, at 43%, and twice as likely to cash in at a profit as their older counterparts, at 27% compared to 14%.

Spokesman for Alliance Trust, Mark Atkinson, commented: “Although it may be a necessity is some cases, cashing in on long-term investments to cover unexpected costs is never an ideal solution, and risks future financial security, especially for those selling at a loss.

“Though it may be tempting to dip into an investment, such as a pension fund, this could undermine your financial future.

“Where possible, it is always advisable to keep a separate savings pot to cover any unexpected costs, in order to keep your long-term financial goals intact.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.