Majority of over 50s unaware of cash ISA allowance

When it comes to saving 76% of people aged over 50 don't know how much their annual Cash ISA allowance is, according to research by The Co-operative Financial Services (CFS).

The findings confirm that the recent allowance increase for over 50s has further blurred understanding of allowance limits; with savers aged over 50 more confused about their ISA allowance than younger generations. One third (32%) of over 50s wrongly believe they can only save £3,600 and one quarter (22%) believe they can only save up to £1,800, highlighting that the allowance increase has not been fully understood.

The figures also highlight saving behaviours of the over 50s with 18% more likely to have invested in an ISA this year than those under 50, 51% more likely to invest lump sums, and 63% less likely to be regular savers, when compared to the under 50s.
       
The research also shows that the majority (52%) of those over 50s believe that the recent financial crisis affected their decision regarding the type of ISA they chose last year, which could explain why this tax year saw a higher proportion of Cash ISA applications for over 50s, perhaps highlighting that people's appetite to risk is lower than in the past.

Rod Bulmer, Managing Director, Retail for The Co-operative Financial Services comments: "The research confirms that although over 50s understand what an ISA is and its multiple benefits, they are not fully aware of the level of ISA allowance. As a trusted financial service provider it is extremely important for us to ensure customers are aware of the current ISA limit so they can gain the benefits from their full tax free allowance."

"We have a wide selection of straight forward Cash ISAs to suit all ages and we recognise that although people have different attitudes to savings, it is important that they are able to understand the different products and choose the one that fits their requirements".