With the cost of living crisis continuing to impact the everyday lives of Brits, it’s no secret that putting money aside into our savings has become increasingly difficult for many.
Surveying 2,000 Brits on their saving habits and attitudes towards ISAs, Shepherds Friendly has revealed that a shocking 28,673,000 Brits don’t currently have an ISA (53%) with three in five of those aged 55 and over not having one, making this the least likely generation to do so.
Shepherds research revealed that those who have an ISA are less likely to dip into their savings than those who don’t have an ISA.
Almost one in five (18%) of those with an ISA revealed that they don’t take money out of their savings once they have put it away, compared to one in twelve (8%) of those without an ISA.
Almost one in six of those with an ISA agree that they save more now compared to when they didn’t have one.
Nearly a quarter (22%) of those who have an ISA put savings into one once a month on average compared to just over one in six (17%) of those without an ISA saving into a different type of savings account.
One in five Brits (18%) admit that they wish they had started to save their money sooner than they did.
Just one in seven (13%) Brits used all their ISA allowance (£20,000) in the previous tax year (2022/23).
To help with saving, Derence Lee, Chief Finance Officer at Shepherds Friendly gives his top tips on saving money in 2023.
He said, “The cost of days out on the weekend can add up, especially with summer holidays approaching. To help save the pennies, keep up to date with what’s happening in your local area and whether venues are offering free entry over the summer holidays.
“Setting up an ISA can be a great way to help encourage you to build your savings, allowing you to save up to £20,000 tax free each year.
“There are several different ISA options to choose from depending on your savings goals, including stocks and shares ISAs that allow you to invest in shares, funds, bonds, and other assets without paying capital gains tax.
“If you’re looking to save money on your food shops, you can look out for who is offering the best deal by doing some quick research online. You could also consider scheduling your trips so that you’re visiting at certain times when many items will be marked down in price.
“With the cost of energy bills continuing to be above normal levels, you can look to save on wasted use by making sure devices are switched off at the wall when they’re not in use, for example, phone chargers and kettles.
“These devices will continue to use electricity when plugged in but not in use, so take a few seconds to make sure they’re switched off.
“Inflation of food and drink prices reached 19% in March, meaning many of us are feeling the pinch when doing our food shopping.
“You can help cut household food costs by trying out food-reducing apps such as Too Good to Go which lets you purchase unsold food from shops and restaurants at discounted prices.”
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