The Investment Association (IA) has announced that the UK investment management industry has hit a record £10 trillion in assets under management (AUM). City firms are celebrating. Government ministers, keen to push their “growth agenda,” have supported calls for lighter regulation and measures to funnel even more capital their way.
But here’s the uncomfortable truth: while The City sits atop a mountain of citizen wealth, the UK economy is flatlining and most households feel no better off.
This is the paradox of our times — the relentless accumulation of financial capital at the top, while human capital at the grassroots is ignored.
Financial Capital Gets the Headlines
When the IA talks about £10 trillion under management, it’s talking about money — investment portfolios, funds, pensions, and institutional mandates. It’s an important part of the economic picture, but it’s not the whole picture.
For individuals, long-term wealth and resilience don’t come from financial capital alone. In fact, what you earn in your lifetime (human capital) is often ten times greater than what you save. Yet in most financial plans, this vital element is missing altogether.
The Missing Piece: Human Capital
Human capital is your skills, knowledge, health, creativity, and capacity to generate income. It is the engine of your personal economy. Neglecting it in financial planning is like trying to fly a plane with one wing.
While policymakers and industry bodies focus on boosting the AUM of large firms, there’s little talk of how individuals can invest in themselves — in their careers, businesses, skills, and life goals — to create sustainable, fulfilling prosperity.
Why This Matters
- £10 trillion in The City doesn’t mean £10 trillion in citizens’ pockets.
- Economic growth on paper doesn’t necessarily translate into improved living standards.
- A financial plan that ignores human capital leaves you vulnerable to career shocks, business downturns, and personal setbacks.
Levelling the Scales
To truly build resilience, human capital must be given equal prominence to financial capital in cashflow planning. That means creating a plan that not only protects and grows your investments, but also develops your earning power, adaptability, and quality of life.
And that’s where having a professional ally on your side matters. Someone who works for you — not for a bank, product provider, or sales target — helping you balance both sides of the wealth equation.
The £10 trillion headline is impressive, but it’s not the full story. Your wealth is more than your portfolio — it’s your potential. Make sure your financial plan reflects that.
Take Control of Your Future—With Expert Support, On Your Terms
Life changes can be challenging—career shifts, family transitions, financial uncertainty. You don’t have to navigate them alone. As your Financial Life Coach, we work with you—not for commission, not to sell products, but to give you clear, tailored guidance you can trust.
Our ‘done-with-you’ approach blends professional expertise with your own insight, helping you:
- Create a financial plan that reflects your values and goals
- Make confident, informed decisions without pressure
- Build resilience for life’s transitions—big and small
Your money. Your decisions. Our guidance.
Book your first session today and start planning for the life you want—on your terms.
Steve Conley, Financial Life Coach. email: steve.conley@aolp.co.uk
Academy of Life Planning 