Yorkshire-based Friendly Society Kingston Unity fears savers are failing to understand the new Super-ISA rules five months after they were implemented
Kingston Unity’s premium income has more than doubled in the past year and its Investment NISA is proving popular but Chief Executive Andrew Townsley believes there’s still a lot of confusion about the new ISAs.
The Friendly Society’s concern is backed up by new stats released today which reveal almost half of Brits have nothing put by for a rainy day.
In the report, published by Mintel, two thirds (66 per cent) of renters and three fifths (60 per cent) of single Brits have no savings or investments compared to 39 per cent of their married counterparts.
“When the new ISA changes were announced in March’s budget many savers and investors were delighted as they made ISAs simpler and more attractive than ever,” said Andrew Townsley.
“But whilst the annual allowance has increased to its highest ever level, it’s to be doubted whether individuals are actually saving and investing more for their future.
“The UK inflation rate is at its lowest level for four years but it is still considerably higher than the ISA savings rates being offered by many institutions.
“This effectively means the value of your money is decreasing not increasing so it’s hardly surprising savers are confused.”
Kingston Unity has been offering a genuine savings and investment alternative to high street banks and building societies for 174 years and like the many mutuals across the UK is run by and for its members.
Whilst UK consumers are failing to save in any great number, Mintel forecasts predicts the ISA market will grow by 31 per cent in the next five years.
Mintel expects the number of stocks and shares ISAs to see comparatively larger growth, rising from 3 million in 2014, to 7.2 million in 2019.
In addition, Mintel’s research shows that consumers at a later stage of life are more likely to hold an ISA or savings account, with 70 per cent of consumers aged 65 and over having savings or investments compared to just 33 per cent of those aged 18-24.
There is also a marked difference in the ownership of ISAs, with almost half (48 per cent) of Brits aged 45-54 holding one, compared to just over one in five (22 per cent) aged 18-24.
Kingston Unity was founded in 1840 and has 100,000 members across the UK. The mutual offers a competitive saving and investment alternative to high street banks and building societies.