Tackling the Savings Gap – A Look at Lisa and Brexit
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
Brexit and Lisa
Two new terms which are now committed to the public domain, formed part of our line of questions in our ‘Tackling the Savings Gap‘ research. Our financial climate is as mercurial as our political one, so keeping our fingers on the pulse of these hotly debated topics, is critical to keeping our research as relevant as possible. As part of our commitment to changing the way the nation thinks about investing in their financial future, we are pleased to share these findings in our latest white paper.
Tackling the Savings Gap
This research is a quarterly temperature check of the UK’s financial climate and the attitude towards savings expressed by the public. To create this picture, we take a cross section of the British public, spanning all socio-economic, age, gender and professional demographics. This gives us the most comprehensive insight in to the views, opinions and actions expressed by the population when it comes to investments, savings and debt.
Lifetime ISA: Does this Spell Success for Savers?
This was an eventful quarter with much to consider politically as we marked issuance of a new budget and the threat (or opportunity – depending on which side of the fence you have decided to settle) of a Brexit. The Budget brought about one of the most progressive retirement savings re-haul to date with the introduction of the new Lifetime ISA or ‘Lisa’. This was of particular importance to True Potential as we have long-campaigned for a more flexible, enhanced ISA, publishing a recommendation for this in February 2015. We were encouraged to see steps in this positive direction, but this also posed the question of how we can further capitalise on the inclination to save in to a Lisa by allowing employers to also contribute.
We discussed these points, amongst many others, within our sample.
Some Key Findings:
32% of Britons plan to save into both a pension and a Lifetime ISA
60% of those aged 35 and over expect no negative effects from Brexit
Employees would be prepared to contribute up to 16% of their salary towards a pension
The average UK citizen has £42,000 in savings
We also found that a third of those polled had contributed nothing towards their retirement fund in the last three months, and a quarter have put nothing aside for general savings. This is why we are committed to continuing this research, and we strongly believe that this £1.4million investment is small change when compared to the cataclysmic savings gap, which is a threat to all of our future financial security.Download The Latest Report