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

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read
Utmost to sell life and pensions business to JAB Insurance

Utmost to sell life and pensions business to JAB Insurance

To focus on wealth solutions business

Jen Frost
clock 22 December 2025 • 2 min read
Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read