The government is not doing enough to promote savings through the public's favoured vehicle, Isas, says F&C Asset Management.
Its survey of some 1,800 adults suggests more than half, 56%, want the annual Isa limit raised to £10,000 from the current £7,000 level.
However, a large slice, some 21%, feel it should actually be doubled to £14,000 compared with the 10% who feel it should remain at the current level.
Overall, about a third of the public intends to include some financial commitments as part of their New Year’s commitments – perhaps not surprising in light of F&C’s other finding some 63% feel they ”spend too much and don’t save enough”.
Isas are clearly favoured as a vehicle: 39% of the research group say they will consider using them, with a further 32% saying they might use them.
That said, fewer than 10% will consider using a stocks and shares Isa, despite strong performances by stock markets worldwide during 2006.
People admit they are unlikely to keep to their resolutions beyond January, F&C’s research also suggests. Hence the reason for government to do more to encourage savings.
The good news is a number of the more important financial deadlines fall within the first few months, possibly helping those who feel they will not be able to maintain their commitments. These deadlines include the 31 January for tax returns, and 5 April for using the full Isa allowance.
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 Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
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