Repeated warnings about the importance of saving continue to be ignored as less than two out of ten (17%) UK adults have a savings vehicle, new research indicates.
A survey conducted by the Investment Management Association (IMA) finds a third of respondents do not save on a monthly basis.
Moreover, while 64% of respondents are aware of the benefits of tax-free saving through an ISA, only 35% of them have a cash ISA and 15% have a stocks and shares ISA.
The Investment Management Association is calling on the government to look into ways of encouraging individuals, as it finds 13% of respondents only save up to £25 per month, while a further 13% save between £25 and £50 per month.
Mona Patel, head of communications at IMA, says there is a long journey ahead before the savings message is taken on board.
Patel says: “What is particularly worrying is that despite two thirds of the population knowing about ISAs much smaller numbers are taking advantage of them. Low levels of saving are one of the biggest challenges facing government and this survey highlights the continuing need to do more.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Gareth Vorster on 020 7968 4554 or email [email protected].IFAonline
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