Seventy-eight per cent of adults in the UK do not have an ISA and are potentially missing out on £20,000 in tax free savings every year, according to analysis by Cushon.

Of those without an ISA, Cushon’s research amongst 2,000 respondents found that 22.8% believe they do not save enough to make it worth having one, while 21.5% want their money to be instantly available when they need it.

Another 13.3% of respondents said they don’t want or need an ISA, while 10.8% said they don’t understand ISAs and therefore haven’t opened one.

However, Cushon also found that 42.3% of individuals said they do not have enough savings to feel financially secure, with 31.1% citing that they don’t have enough disposable income to build a sufficient level of financial resilience.

Cushon head of proposition, Steve Watson, commented: “Even though everyone’s financial priorities are different, we do still have one thing in common and that’s the need to have savings which are accessible and available.

“We want to help people build financial resilience and reach their savings goals, whether that’s getting the keys to their first home, buying a new car, saving towards retirement or having a financial buffer to fall back on should unexpected circumstances occur.

“While the majority of adults don’t have an ISA, this can be remedied through better and wider financial education to help people understand and make informed decisions about their finances and what is best for them.”

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