ISA continues 25-year success story as savers invest for the future
For immediate release: 5 April 2024 Marking the 25th anniversary of the ISA, the Investment Association (IA) and Opinium have surveyed 1,000 investors to take the temperature on their attitude to ISAs and investing, with three key findings revealed:
As the next tax year starts, many investors will have taken the opportunity to top up their ISA allowances. With the average amount invested into a Stocks and Shares ISA in 2023/2024 tax year reaching £6,690, almost half of investors (46%) are saving for retirement, while more than a quarter (28%) are putting money away for a rainy day. Among younger investors saving for a property was a key motivator, with 44% focused on this goal. Despite the continued high cost-of-living, 38% of investors ended this tax year having invested more than in the previous tax year. However, 14% have cut back on saving into their stocks and shares ISA. High energy and food bills impacted a third (35%) of investors, while a third (34%) also noted the higher interest rates on cash savings, in comparison to 20% in 2023. Rising mortgages rates also hit a fifth (19%) of investors – double the number of investors than in 2023. This had a greater impact on younger and middle-aged investors with a quarter of those aged between 18-54 years affected, in comparison with only 7% of the over 55s. Commenting on the results, Chris Cummings, Chief Executive of the IA said: “Savers across the UK have been taking advantage of their annual ISA allowance as the tax year comes to a close this week. The ISA has been a clear success story, and 25-years on from its creation, it is providing a valuable, tax-efficient way for individuals to save for the future. “Our research reveals that younger investors back British businesses - a quarter of younger investors strongly believe in the importance of boosting capital flows to British companies and were more positive that investing in the UK could help them to meet their financial goals. Whilst all age groups are keenly interested in the ISA’s next chapter, the UK ISA holds most appeal for the young.” Notes to Editor:
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For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Ismail Abdi, Communications Trainee: [email protected]
T: +44 7596 872575
IA Press Office: [email protected]
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.8 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.