Latest News and Events

ISA Choices and Inflation

Of those choosing to invest in a stocks and shares ISA, 54% stated their primary reason was the belief that it would provide a better long-term return than a cash ISA. That’s according to a survey by The Investment Association which also highlighted individual decisions to choose a stocks and shares ISA being swayed by the ability to invest in innovative and sustainable companies as well as being able to access funds before retirement. By contrast the survey also revealed that those choosing instead to invest in cash ISAs prioritised liquidity and low-risk savings over long-term returns.

Interestingly, the survey also revealed that 48% of Gen X and 19% of Gen Z were using cash ISAs to save for their retirement. This, the Investment Association says is “concerning when you consider that over longer time horizons, returns on cash have historically struggled to keep pace with inflation meaning the real value of savings can be significantly eroded.” As a result, they say there is a need for clearer education and guidance to support more informed decisions about aligning investment pathways with financial goals.

If you would like advice on investments or if your circumstances have changed and you feel you may need to review your existing pensions or investments, please contact Beckworth using one of the links on our website.