The Financial Future Consumer Attitudes Towards Financial Planning and Themes for 2018
Savings and Investments Currently, of the vast majority of savings nationwide, 66%, are held in cash savings accounts (including ISAs) with 31% in a private or company workplace pension and 15% held in equities or shares. Looking deeper into the figures, whilst women were slightly more likely to have cash savings (67% vs 64%), men were more likely to have a private or company pension (36% vs 26%) and are more likely to invest in shares (19% vs 11%). Almost a quarter of respondents, 23%, had no savings or investments at all. Launched in April 2017, a Lifetime ISA (LISA) lets those under 40 save tax-free for either a property or retirement. The crucial difference to standard ISAs is that savers also get an annual government bonus equal to 25% of savings which is payable until the saver reaches 50.
In spite of considerable attention on the new Lifetime ISA only 13% of respondents said they were very likely to take one out and 28% were fairly likely to do so. 42% were either not very likely or not at all likely to use one, perhaps reflecting the lack of clear guidelines over the sale of such products. Those with higher education qualifications were more likely to take out a Lifetime ISA, with 51% responding positively. The large percentage of cash savings could be a reflection of political elections globally and the trust people place in cash during times of uncertainty.
Lifetime ISA only
of respondents have savings or investments - however the number taking time to review their savings and investments was 48%, down 9% on the 2010 result.
of respondents said they were very likely to take one out
of respondents hold cash savings in 2017
Fewer people are reviewing their savings and investments compared to 2010 suggesting a short-term attitude amongst respondents.
28% were fairly likely to do so.
66% of respondents have cash savings implying that fewer people are looking at the longer term, preferring easy access cash to tied-in investments.
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Published on Dec 6, 2017