Last-minute ISA savers

With just three weeks to go until the end of the tax year, only 36% of Stocks and Shares ISA savers surveyed by Fidelity Personal Investing say they have invested their full allowance for this tax year.

Many savers make contributions to their ISA at the last minute, and this year is no different. Almost one fifth of ISA savers surveyed plan to invest in the last three weeks of the tax year before the April deadline. In addition,

15% of ISA savers are undecided as to whether to invest, or don’t know where to invest yet;

30% of ISA savers cannot afford or do not wish to save any more into their ISA.
 
The survey of over 500 Stocks and Shares ISA investors, conducted by Opinium for Fidelity Personal Investing, also found:
 
18% of people who still plan to invest through their ISAs this tax year will do so in the last week before the April deadline (w/c 31 March).
 
A further 28% of people who still plan to invest through their ISAs this tax year aren’t sure when they’ll do it.
 
Of the people who plan to invest through their ISAs in the last three weeks of this tax year,

27% of people say they haven’t gotten around to it yet;

24% of people say they have been watching the markets and waiting for the right time to invest;

13% of people say they haven’t been able to decide where to invest.
 
Mark Till, Head of Fidelity Personal Investing, comments: “Every year, a good proportion of ISA savers leave their decision-making to the last minute. There will always be more exciting things to do than invest using your ISA allowance, but these are decisions that could significantly affect your future. Instead of making a mad dash at the end of the tax year, many savers choose to contribute to their ISAs through a monthly savings plan, putting a little away every month. This takes away the stress of leaving your decisions to the last minute, as well as keeping your investments free from the impacts of bad market timing.  24% of people who still plan to invest through their ISAs say they’ve been waiting for the right time – but trying to time the market is hugely difficult, and you’re likely to be far better off in the long run if you contribute regularly instead.
 
“It’s not surprising that 13% of these people say they haven’t been able to decide where to invest. With thousands of different funds to choose from, the decision can be daunting even off-putting. But don’t panic at the end of the tax year and just opt for funds without thinking. Instead, try to do some homework. Guidance tools like Fidelity’s Select List are designed to help you navigate the universe of investment, where experts highlight funds and can help narrow down your options in a smart way.”