Three million pensioners hold all ISA savings in cash - FOI data

4,4% of spending power lost

Julia Bahr
clock • 1 min read

More than three million pensioners hold all their ISA savings in cash, data obtained by pensions consultancy LCP found.

High inflation rates will result in "savage" cuts of more than £3bn in the total spending power of UK pensioners' cash savings in the next year, according to LCP partner and former pensions minister Steve Webb (pictured). With UK inflation figures currently at 5.4% (CPI in December), even a relatively generous 1% interest rate in a Cash ISA would see pensioners lose 4.4% of their spending power over a 12-month period. Applied to the £87bn held by cash-ISA-only pensioners, this implies a £3.8bn hit in a single year on the real value of pensioner savings for those who hold all their ISA...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Takes case to The Pensions Ombudsman

clock 10 September 2026 • 2 min read
Pension changes to impact more than half of advised clients

Pension changes to impact more than half of advised clients

Advisers’ biggest concern is not understanding the pension IHT rules

Sophia Panayi
clock 09 September 2026 • 2 min read
HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read