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...

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