For immediate release – Tuesday 9th August 2005

New IMA survey¹ shows savings message continues to fall on deaf ears

A survey commissioned by the Investment Management Association (IMA) last week highlights that the savings message continues to fall on deaf ears.

Key findings show that:-

• 1 in 6 (17%) of the adult population have no savings vehicle²
• 1 in 3 do not save on a monthly basis
• While most people (64%) know that they can invest up to £7000 every year tax-free in an Individual Savings Account the majority do not take opportunity of this

The survey reinforces the need for the government to do more to encourage people to save for themselves.  33% do not save on a monthly basis, a further 13% only save up to £25 per month and another 13% save between £25 and £50 per month. 

While 64% of the population know about the benefits of tax-free saving through an ISA, only 35% of them have a cash ISA and 15% have a stocks and shares ISA.

Mona Patel, Head of Communications of the IMA commented,

“  There is clearly a long way to go before the savings message starts to resonate.  What is particularly worrying is that despite two thirds of the population knowing about ISAs much smaller numbers are taking advantage of them.  Low levels of saving are one of the biggest challenges facing government and this survey highlights the continuing need to do more.” 

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898
 
Out of hours contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898

Notes to editors:
1.  The research was conducted between 2nd and 4th August 2005.  YouGov interviewed a sample of 2183 individuals representative of all GB adults.  The survey was carried out online.  Results were weighted to be representative of all GB 18+ adults.

2. This was based on the following choices:- Bank or building society savings account (as opposed to current account), Cash ISA, Stocks and shares ISA, PEP, Unit Trust or OEIC (Investment Fund), Investment Trust, Stocks and shares in which you invested directly, None of these.