‘Concerning’ so few are re-looking at investment planning

‘Concerning’ so few are re-looking at investment planning

Octopus Investments has branded it “concerning” that few people are taking a fresh look at their investment planning concerning the radical pension changes and Isa limit increases coming in in April.

Research from Octopus Investments, conducted among 2,184 adults, found that 61 per cent of people in the UK plan to invest in 2015, however a significant proportion do not intend to make the most of the tax efficient options available to them.

The research revealed huge regional discrepancies as to how people plan to invest their money this year.

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With just a few months to go until the end of tax year, people in the south west of England are most intent on using their full Isa allowance (31 per cent).

But in Wales and the north only around one in 10 people have plans to do the same.

The Octopus research also shows those in the east Midlands are most likely (68 per cent) to invest this year.

Those in the north and Wales are the least likely - although over 50 per cent of people in these regions still said they will commit money to investments this year.

Simon Rogerson, chief executive and co-founder of Octopus Investments, said:

“It is great so many people are starting the new year with plans to invest, but with changes to retirement planning and new limits on Isas due in the spring, not to mention a host of other tax efficient opportunities to explore, it is a concern that so few people intend to take a fresh look at their investment planning.

“With tax year end fast approaching, now is a good time for people to speak to a financial adviser to be sure they are aware of all the options that are open to them so they can plan with confidence for the future and ensure that their investments work hard for them and really make a difference.”

The research also revealed that the size of a household can have a direct bearing on how smart investors are with their money.

While smaller families are slightly more inclined to invest – and tend to go for the obvious choice and commit to an Isa – it is larger families that are twice as likely to look at tax efficient investment options beyond the standard Isa (20 per cent compared to 10 per cent for families with no children).

Almost twice as many families with three or more children expect to sort out their retirement planning in 2015 than those without children (18 per cent compared with 10 per cent).