Why the Push for Risky Investments is More About Industry Profits Than Your Financial Future

It’s a familiar tune, isn’t it? Politicians, treasury officials, regulators, investment firms, and their trusty sidekicks in the press all crooning the same song: "Move your cash savings into investments! It’s the smart thing to do!" But let’s pause the orchestra for a moment and ask ourselves: smart for whom?

Whose Interests Are Really at Heart?

It doesn’t take a behavioural finance genius to see that the ones most enthusiastic about this advice stand to benefit handsomely. More funds under management mean more fees for the industry. But the benefits for you, the saver? Well, they’re about as clear as a smudged bathroom mirror.

Sure, they’ll dangle carrots like a study claiming it might shave 2.5 years off your working life if you invest. But risk being what it is, it could just as easily add those 2.5 years back—and then some. What they don’t mention is that not everyone sees working longer as a punishment. Increasingly, people are choosing to remain economically active well into their 70s and beyond. Work, when it’s meaningful and enjoyable, keeps you healthier, more engaged, and dare I say, happier.

The Emotional Manipulation of "Comfort Investing"

Let’s delve into the Oxford Risk study that’s been paraded around to scare you into action. It claims the average investor loses 1.5% per year simply by holding too much cash. That number balloons to 3% when combined with “emotional mistakes” like sticking to familiar investments or chasing trends.

But let’s call this what it really is: emotional manipulation. Yes, people seek “emotional comfort” with their money—because it’s their money! It represents years of work, sacrifice, and security. Asking someone to toss it into volatile markets isn’t a casual decision. And yet, Oxford Risk’s pitch is, “Don’t worry, we’ll help you not think too much about it. Trust us, we’re experts.” Convenient, isn’t it?

Let’s Talk About Balance (and Human Capital)

What’s missing from all this investment cheerleading is balance. Not everyone needs or wants to bet their life savings on the stock market. Risk isn’t just a financial concept; it’s deeply personal. It’s about illiquidity, volatility, and whether someone can sleep at night knowing their nest egg might shrink dramatically before it grows.

Instead of pushing a one-size-fits-all solution, why not talk about human capital? The skills, passions, and opportunities people can leverage to continue earning an income doing work they love—whether that’s part-time consulting, starting a small business, or even just working fewer hours in their current role. Not only does this approach reduce reliance on savings, but it also fosters purpose, social connections, and mental stimulation. Plus, it’s a win for society: less strain on benefits, more tax revenue, and a more engaged, active population.

Stop Feeding the Industry Beast

The push to funnel savings into investments isn’t really about helping you retire earlier. It’s about feeding an industry that profits handsomely from your fear of missing out. The rhetoric assumes financial capital is the be-all and end-all of a happy life. It isn’t. Let’s start telling both sides of the story. For some, investments may be the right choice. For others, building a life they love while maintaining financial stability in ways that feel safe and sustainable is the smarter path.

So, next time someone tells you to "put your money to work," ask yourself who’s really going to benefit from that shift. It might not be you. And that’s the side of the story they don’t want you to hear.