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Over half the population will not use Isa tax breaks

Over half the population do not intend to take advantage of Isa tax breaks, according to research from Scottish Widows.

The Scottish Widows Savings and Investment report 2009 shows 60 per cent of individuals do not intend to take advantage of the Isa tax breaks available.

The research shows amongst 18-24 year olds, 27 per cent have no knowledge of Isas.

The report identifies five barriers to saving: having no money available, lack of trust in providers, lack of confidence in the financial sector, finding it too hard to get the best deal, and having debts to pay off.

The report suggests lack of money is by far the biggest barrier to saving and the perception of this barrier has increased significantly from last year.

Parents are also dipping into their savings or going into debt to help support their adult children financially, forcing them out of saving anything for the future, according to the report.

Scottish Widows says a new simplified product regime would help encourage more people to save.

Scottish Widows head of savings and investments Gordon Greig says: “We would like to see simple products with simple literature designed to achieve simple goals. The research indicates the industry must continue to innovate and produce simplified equity-based savings products. The financial services industry needs to play its part in bringing attractive products to market that meet clients’ needs and wants.”


Why the FSA won’t hold fire on RDR

There are just a few fairly significant problems with trying to persuade the FSA to hold fire on the RDR:1: The FSA appears to be entirely unaffected by the economic downturn for the simple reason that its income is entirely unrelated to what is happening in the real world of commerce. How nice if the rest of us could raise what we want simply by compulsory levies.2: The FSA has no idea just how much up-front work an IFA has to do to get a new client on board. We could charge fees but so much damage has been done to the reputation of the industry that hardly anyone is prepared to pay for what they perceive to be nothing more than being steered in the direction of whatever product best suits the pocket of the IFA.3: The FSA has a proven and documented history of only very limited preparedness to take note of representations from the industry.

European champion

Trying to forecast what each individual region might return over the next year, or years into the future, seems largely futile to me. There are so many variables which are impossible to predict.

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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