Savers are not using full ISA allowances
AS the deadline for this year’s ISA allowance approaches on 5 April, research claims that just half of Britons will contribute to the tax-free schemes, with the UK’s total ISA savings falling £182bn short of the combined allowance for the year.
Mainly citing financial restraints such as paying off credit card bills, those who do plan to put money into an ISA will put away an average of £2,784 – just over half the annual allowance of £5,340.
According to the study by price comparison website uSwitch.com, 29 per cent of people plan to contribute less than £1,000, while a quarter will take full advantage of their 2012 allowance.
But those who do plan to save are becoming increasingly willing to cut back on other spending in order to save cash, with 16 per cent saying they would sacrifice a holiday to pay into an ISA, while 22 per cent would cut back on daily luxuries.