Half of UK savers unaware of upcoming Cash ISA allowance changes

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18 March 2026

According to a new survey conducted by RBC Brewin Dolphin1, 50% of UK savers are unaware of the upcoming changes to the Cash ISA allowance, and those who are aware have largely refrained from seeking financial advice.

6 April 2026 marks the last tax year that some individuals can deposit the full £20,000 into their cash ISA tax free. From 6 April 2027 under-65s will be limited to £12,000 in their Cash ISA, with the remaining £8,000 of the £20,000 overall ISA allowance available for Stocks & Shares ISAs or other ISA types.

Michelle Holgate, director, wealth manager at RBC Brewin Dolphin, said:

“The reduction to the Cash ISA tax-free allowance represents a potentially momentous shift in the UK savings and investment landscape. It is strongly advisable to review your current ISA holdings and consider whether your assets are optimally positioned to meet your goals. If you’re in that critical window before taking retirement, the start of the new tax year, on 6 April, represents an opportunity to reassess and reset your savings strategy, prioritising allowances whilst you’re still able to do so.”

Awareness of recent Cash ISA allowance changes remains low among UK savers

A quarter of the respondents said that they currently have a Cash ISA account, while just 8% said that they have a Stocks & Shares ISA. 12% said that they had both a Cash ISA account and a Stocks & Shares ISA.

Despite ISA reforms being a main headline announcement revealed in the Autumn Budget, 50% of survey respondents were unaware of the forthcoming changes to the Cash ISA rules, with those under 40 years old the least likely to have heard of reforms.

The lack of awareness may be explained by relatively low rates of saving and investing activity:

  • RBC Brewin Dolphin found that 35% of its survey takers do not have any form of savings.
  • This number rises to 42% for those aged 40-54, often known as the “sandwich generation”, whose finances may face both upwards and downwards pressure from child and parental care.
  • At the same time, this is also a cohort who would benefit greatly from tax-efficient savings strategies as wealth begins to transfer through generations.

UK savers appear hesitant to adjust their saving and investment strategy

RBC Brewin Dolphin’s survey also revealed that ISA reforms are not prompting widespread reconsideration of savings and retirement strategies, even among those who were aware of the changes.

Key highlights:

  • 90% of respondents stated they have no plans to review their current approach in light of the new allowance split. This attitude was highly consistent across age and geographic groups.
  • Meanwhile, just 7% stated they were “much more likely” to maximise their ISA in this financial year.
  • For those who are adjusting their approach, 21% are considering investing in a mix of Cash and Stocks & Shares ISAs.
  • This number was lower for the 40-54 age group at only 11%. This may similarly indicate that the ‘sandwich generation’ are concerned about external pressures on household finances and are therefore shying away from the perceived illiquidity of stocks and shares investment.
  • Meanwhile, 14% of all respondents stated they did have savings and investments, but did not hold these in an ISA product and therefore do not receive the advantages of a tax wrapper.
  • When asking approximately 2,000 ISA holders if they were more likely to maximise their allowances before changes come into effect, over 40% said they would not maximise their allowance with a further 10% of ISA holders saying that they would not contribute at all in 2026.

Michelle Holgate advises people to explore all options before changes to the allowances come into effect. She comments: “Considering the use of tax efficient wrappers can be beneficial during the building of wealth phase and also when it comes to drawing a tax efficient income in the future. This would include ISAs, investment bonds and pensions alongside the traditional taxable investment options.”

The role of ISAs in retirement planning

In addition to behaviour around ISA changes, RBC Brewin Dolphin’s survey uncovered interesting investment behaviour and attitudes to retirement savings. Overall, surveyed UK savers have low confidence that their current savings and / or investments will be sufficient. This concerned sentiment was particularly acute among those approaching retirement.

Key highlights:

  • 47% of those aged 40-54 and 36% of those 55-64 reported having “no confidence at all” in the critical decades before exiting the workforce.
  • Notably, these were also cohorts with low uptake rates for Stocks & Shares ISAs (both less than 10%).
  • Over half of those in these cohorts also said that they do not hold any form of ISA account.

Holgate comments: “Rather than looking at ISAs purely as savings vehicles, they could be considered as retirement income tools that bridge the gap between your chosen retirement date and your state pension. With the retirement age moving to 67 and the rules for other private pensions being scheme specific, it’s important to understand your retirement plan and cash flow requirements and mitigate any changes that might jeopardise your plan. Generally, if you are in a position to do so, you should be considering how you can maximise your ISA allowances this coming year before changes come into play.

For those in early to mid-career, developing a long-term retirement saving and investment habit lays the groundwork for funds to accumulate steadily. The best time to start saving and investing for retirement is right now. Even with the imminent allowance changes, ISAs remain an excellent vehicle for retirement at all career stages, and they can easily accommodate the bonuses and pay rises that come along the way.”

The important role of financial advice in helping savers achieve their financial goals

RBC Brewin Dolphin’s ISA survey also found that only 6% of respondents have consulted a financial planner on upcoming ISA changes, and only 7% plan to.

Holgate adds: “These findings above should not be interpreted as evidence of ambivalence over personal finance by UK households. Rather, they spotlight the opportunity for better and more tailored advice to unpick the benefits and drawbacks of the various tax-wrapper products available to savers, and better equip them to take a proactive approach.

A financial planner can aid clients in a holistic review of their current ISA holdings and help them decide whether assets are optimally allocated. Planners look at asset risk profile and tax liability, as well as the bigger picture of a client’s life – such as caring responsibilities, closeness to retirement, and inheritance.”

1 Survey conducted by RBC Brewin Dolphin and Find Out Now

About the survey

RBC Brewin Dolphin conducted two surveys, in partnership with Find Out Now, a nationally representative survey of approximately 2,000 individuals and a survey of approximately 2,000 ISA holders in March 2026. Respondents were adults between the ages of 18 and 75+, across all regions of the United Kingdom.

Disclaimers

The value of investments, and any income from them, can fall and you may get back less than you invested.

This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist.

Neither simulated nor actual past performance are reliable indicators of future performance.

Information is provided only as an example and is not a recommendation to pursue a particular strategy.

Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.

Opinions expressed in this publication are not necessarily the views held throughout RBC Brewin Dolphin.

Forecasts are not a reliable indicator of future performance.

Press information

For further information, please contact:

Georgia Embrey: Georgia.embrey@rbc.com / Tel: +44 (0) 7704 667 842

Olivia Ricketts: Olivia.ricketts@rbc.com / Tel: +44 (0) 792 628 7407

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The value of investments and any income from them can fall, and you may not get back what you invested.