Over 60 per cent of Brits do not have an ISA
Research from the Nationwide Building Society, who are the second biggest ISA provider in the UK, reveals that 62 per cent of Brits do not have an ISA. Last week’s budget didn’t really help the situation becuase the government didn’t offer any additional help or flexibility to try and get more people to make use of their ISA allowances.
I think the problem is quite obvious; only 30 per cent of Brits can afford to save, simple as that. If you’re married and you have a couple of children, earn an above average salary, by that I mean say £10,000 above the UK average of £21,000 per annum, run a car and have an average mortgage to pay (bearing in mind the average house price in September 2008 was £257,000), then it’s no wonder the last thing on 62 per cent of Brittish minds is saving money in an ISA!
Personally, I don’t have a pension and if I want to actually have any money in my wallet when I’ve paid the mortgage, bills and so on, I cannot afford to save any money at this point in my life. Don’t get my wrong, I’m not pleading poverty here!
Director for savings at Nationwide, Matthew Carter, says: “It’s a concern that two thirds of people do not have an ISA. ISAs were introduced 10 years ago and yet some people still do not understand them or feel they haven’t enough money to invest in them. We want people to understand that anyone can take advantage of tax-efficient savings no matter how much money they have to save. It’s also important to inform would-be savers, worried that their money is tied up, that all ISAs are instant access.
“Nationwide has now called on the Chancellor twice to reform ISAs by equalising and index-linking limits. We have also called for a withdrawal buffer that allows savers to make withdrawals and replenish their ISA within the same tax year. This would particularly help people on lower incomes and encourage those that need access to their money to open an ISA.
“We look to the Government to take action and encourage more people to use their ISA allowance and listen to the industry when deciding how to move the savings vehicle into the 21st century.”