Only a quarter of UK investors (25%) feel that they are, or will be, well prepared for retirement financially, with a small percentage (3%) saying they have no idea how they will fund their retirement, according to the TD Direct Investing Investor Poll.
The top ways in which UK investors plan to fund their retirement are through a government pension (57%), through their employers' pension (56%), through an ISA (52%), using their regular savings account (48%) or with a personal pension (44%).
Stuart Welch, CEO, TD Direct Investing comments: "With three quarters of the population admitting they do not feel prepared for retirement - and with the end of the tax year just a matter of weeks away - it's an ideal time for everyone to review their financial plans in order to get prepared."
In April this year, the overall amount UK investors can put into a Stocks and Shares ISA will increase to £11,520 - and according to TD's research, 52% of UK investors plan to fund their retirement through an ISA.
Stuart continues: "By having both a pension and an ISA, you can look to make the most of the differing tax advantages of each product. In addition, you get a little more flexibility when accessing your money. With a pension, you have a pot of money which can't be touched until retirement, so no risk of spending it beforehand. But by having an ISA as well, you can access your money should you need it for a life event or even just a rainy day."
The research also revealed encouraging news for those who are now choosing to manage their own Stocks and Shares ISAs investments, post the Retail Distribution Review. The research showed that UK direct (online) investors feel that they have performed somewhat (71%) or very (11%) successfully in relation to the stock market over the past two years.
When asked for the top three reasons for deciding to invest online, a third of investors said they liked the idea of being in control and managing their own investments while convenience (19%) and cost-effectiveness (18%) were also important factors.
Respondents to TD's survey also said that they saw online investment companies as having an edge when it comes to managing their funds because of the available research (57%) and the wide range of investment products available online (52%).
Stuart Welch concludes: "Last year we reported that Stocks and Shares ISAs had become more popular than cash ISAs for the first time - and now with the increase in the Stocks and Shares ISA limit and the availability and quality of online research tools, more people are choosing to take control of their own investments.
Stocks and Shares ISAs allow investors to access a wide range of investment opportunities including both UK and international equities, Unit Trusts, OEICs, REITs and Exchange Traded Funds (ETFs), meaning any risk can be mitigated with the help of a diversified portfolio"
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