3m Pensioners Have All ISAs in Cash
Published / Last Updated on 25/01/2022
A Freedom of Information request by LCP has found that more than 3 million pensioners currently hold all their ISA investments in Cash ISAs. The average holding for Cash ISA only pensioners is just above £25,000 invested.
Comment
This is quite staggering but marginally understandable.
Many cash ISAs are paying interest of no more than 0.1% to 0.2% pa, but when we look at inflation devaluing cash assets with CPI inflation at over 5%pa and the old measure of inflation, RPI at 7.5%pa, pensioners should be made aware of the risk of holding cash and think about inflation proofed assets.
That said, a pensioner’s view of market risk may be very different to younger people. Depending upon how old you are, your may consider that any stock market linked investment losses may not be recovered in time due being older and less years to make up a loss.
Pensioners may be caught between ‘a rock and a hard place’. If you are caught by this, we suggest you contact us to discuss investing in inflation hedged assets.