The government should urgently review its savings strategy and reduce the amount that can be saved into Cash ISAs to prevent savers losing billions of pounds to the erosive effects of inflation, Royal London has said.
The life group's call came as it published a paper highlighting how the government has been cutting tax breaks on pension saving - money that, by default, tends to be invested across a range of assets - while boosting tax breaks on all types of ISA, including Cash ISAs. Royal London director of policy Steve Webb said: "This policy is nudging people in the direction of a savings vehicle that forces the choice of investment into the hands of the savers - who appear to be choosing cash ISAs over stocks and shares." According to the paper, The curse of long-term cash, the popularity of Ca...
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