Over two in five consumers (45%) are using a savings account to save for retirement, outside of any pension saving, according to research published by Barnett Waddingham.

The findings indicated that 25% of three people are using a cash ISA, including more than a fifth (21%) of those aged between 18 and 34.

Barnett Waddingham’s research was based on a survey among 2,000 UK adults conducted in September. It showed that 12% of 18 to 34 year olds are using cryptocurrency to save for retirement, compared to the UK average across all ages of 5%.

The findings also suggested that men are twice as likely as women to be using a stocks and shares ISA to save for retirement, at 22% compared to 12%.

Partner and head of DC at Barnett Waddingham, Mark Futcher, said: “It’s vital people pay attention not just to what they’re saving for retirement, but how and where too. Squirrelling away money for retirement into a cash savings account might feel safe, but the reality of the inflationary environment is that it could be falling in ‘real terms’ by as much as 8% or 9%.

“That’s not a performance people would accept from any other asset class; risk changes over time, and equities are less ‘risky’ in the long-term than the short-term.

“For those unsure where to save, there are many excellent sources of advice. Good employers will have a vested interest in your financial wellbeing; it’s worth speaking to them about accessing financial guidance. Alternatively, financial advisers, money advice charities, and government initiatives like Money Helper can help point people in the right direction.”

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