New Junior ISA sales jump 12% in Q4 2024, despite economic uncertainty
The volume of new Junior ISA (JISA) policies opened across the UK in the last quarter was up 12% on the previous quarter, according to the quarterly Scottish Friendly Investor Index.
The Index, which uses the modern mutual’s own sales data to track trends in investor behaviour, shows the appetite for JISAs was particularly strong in the North West of England, which recorded a jump in new JISA sales of 22% on the last quarter. And in Wales, where JISA sales were up 17%.
Meanwhile, Scotland and the South East also beat the national average increase in new JISAs being opened, both recording a 13% quarter on quarter increase in Q4.
When it comes to the actual amount of money parents are putting into JISAs, that too shows the North West ahead of the pack with opening balances up 14% quarter on quarter. That compares to a UK-wide increase of 2%.
In the majority of regions, bar Wales, where there were marked increases in new JISAs quarter on quarter, the Investor Index also shows upward trends for the value of contributions. In Scotland, these were up 6% and in the South East they were up 7%.
Commenting on the growing appetite for JISAs, Jill Mackay, Head of Marketing and a savings specialist at Scottish Friendly, said: “Our research shows that six out of 10 parents worry that their child won’t be able to afford to leave home once they become adults, with over half concerned that the deposit for rented accommodation will be out of their reach.
“Taking a JISA out for your child is a practical and affordable way to help the next generation build a nest egg that enables them to spread their wings when the time comes. It’s great to see so many parents taking steps to help build greater financial resilience for the young adults of the future.”
The mutual, which would like to see the rules around who can set up a JISA relaxed to include grandparents, aunts and uncles, says that while you can’t put a price on the benefit of building greater financial resilience, you can put a pounds and pence number on the impact of delaying doing it.
Scottish Friendly has crunched the numbers on the cost of delaying, even by just a few years. And the price of delay is significant.
On average, new parents only get their heads around taking out a JISA for their child when they turn 3+ years old.
That equates to three ‘lost’ growth years and sees the child missing out on nearly £6,000 by the time they’ve reached 18. For every subsequent year’s delay, the loss is compounded. If parents wait until the child is 10 years old before taking out a JISA the child misses out on over £15,000 less by the time the child reaches 18.
Mackay concludes: “So perhaps it's no wonder that more parents are thinking about putting more away to help towards their child's future goals. It's great to see and could make a real difference towards the financial resilience of our young adults of the future.”
Contact for more information:
Kevin Brown, PR & Communications, Scottish Friendly
07512194336
Editor’s notes:
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.