Research from Friends Provident has found that 87% of people in Britain are unlikely to take advantage of saving their money in a maxi ISA during this financial year. But the survey also showed that 71% of the population identified ISA's as tax efficient, and 50% believed that Isa's provide the best tax advantages compared to a current account or investing in stocks and shares.
According to the survey, only 37% of 19 - 25 year olds have an Isa, compared to 62% of those among those over 55, and men seem to know more than women, as 35% of men could identify the £7,000 tax-free limit, compared with only 21% of women. Twenty five per cent of women also rely on their partner or spouse when making financial decisions, while men are more likely than women to visit a financial adviser.
Over half of the population did not know that the term Isa stood for individual savings account.
Our view
We all need advice provided the value received is good value - i.e. the tax savings or the investment return outweigh the cost involved.
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