ISAs give consumers a 'very tax-efficient saving"
9th July 2008
Consumers need to ensure they have enough provision for their retirement
and ISAs are a good way to create efficient savings, an industry expert
has advised.
Ian Naismith, head of pensions market development at Scottish Widows,
explained that unless people take action now they will find themselves
experiencing a "very sharp drop in [their] standard of living" once they
retire.
Mr Naismith said that currently only half the population is saving
enough to get them through retirement. He said: "In particular, we are
saving more in things like ISAs which give a very tax-efficient saving
but don't tie money up if we need it in an emergency."
According to Mr Naismith, people need to make a realistic assessment of
their current financial situation, then cut back on non-essential items
and start saving.
A recent Scottish Widows pensions survey found that whilst the
credit-crunch has encouraged some to take up ISAs and "put money away
for a rainy day", almost a third of people are pessimistic about their
short-term financial situation.