Fewer than half of Brits have made full use of their annual tax-free Isa allowance, according to research from Sanlam.
Of those with at least £50,000 in investible assets, 48 per cent had used their full allowance.
These findings were echoed in how investors used their pension contributions. Of this cohort, only 20 per cent of respondents had made full use of their annual £40,000 tax-free pension allowance.
Those who maximised their Isa contributions were more likely to have taken financial advice.
Sanlam found 59 per cent of these respondents had regularly seen an adviser, against 42 per cent who had not seen one at all.
The correlation between value of assets and ability to use saving allowances was clear.
Only 33 per cent of respondents with investable assets of between £50,000 and £100,000 maximised their Isa contributions. This figure rose to 71 per cent among those with over £1m to invest.
Respectively, only 13 per cent maxed out their pension contributions against 43 per cent.
“The tax-free annual allowances for Isa and pension contributions are an extremely important component of any savings plan,” said Elliot Silk, head of commercial at Sanlam UK.
“Those that have the ability to max out their contributions should do so to take full advantage of the tax-free savings on offer.
“While the allowances may seem unreachable at first, by breaking down contributions over the course of 12 months many people may find it a more achievable goal.”
Jon Yarker is a freelance reporter for FTAdviser
