Almost one quarter (24 per cent) of Brits plan to save and invest more during the new tax year, a new survey has found. This marks a two per cent increase from last year, when just 22 per cent of people said that they planned to put more money aside.
New research from online investment house Willis Owen suggested that Brits are becoming more savvy about their savings, with a further 24 per cent planning to invest or save the same amount that they did in the previous tax year. Just 12 per cent said that they would invest and save less, while 16 per cent said that they were unsure.
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However, one in four admitted that they did not save or invest anything last year, and don’t plan to save or invest in 2018/19 either. Twelve months ago this figure was almost identical, at 25 per cent.
“The fact that almost half of all people plan to maintain or increase investing and saving in this new tax year speaks volumes for the strength of the economic recovery,” said Jason Chapman, managing director at Willis Owen. “It also suggests consumer confidence is robust, despite lingering Brexit concerns.
“For the many who choose to invest in an ISA, the good news is that the tax-free allowance is now reset. Customers can save up to £20,000 over the next 12 months, and we urge them to start using that allowance as soon as possible.
“However, our research reveals some extremes. A stubborn minority do not save or invest at all. This is worrying, not least because the figure has barely changed over the last 12 months. Creating a stronger saving culture for all is critical if we are to support ourselves financially, especially in later years.”
The current tax year began on Friday 6 April, and saw the annual ISA allowance reset.
Savers and investors can now put aside as much as £20,000 in tax-free wrappers over the next year, using their funds to invest in stocks, shares, bonds, peer-to-peer lending, and cash accounts.