The survey of 101 IFAs based in the UK also found that nearly a third of advisers believe the number of UK residents using investment ISAs this year will fall, while 44% predict it will stay the same.
However, nearly a fifth of IFAs were more optimistic, adding that they expect an increase in the take up of ISAs.
In addition, half of advisers believe more people would save or invest if the ISA allowance was raised.
Volatility
The figures show that 35% of financial advisers say the main reason UK residents will not invest this year is because they are worried about the impact of volatility on financial markets; while over a third say it is because of a lack of spare cash.
Stuart Dyer, chief investment officer at rplan, said: “No doubt the volatility in January and Brexit vote later this year are factors in making investors more cautious this year, although there are other issues around the world that need to be considered.”
Low interest rates and asset class
Showing more confidence, 41% of IFAs say that the main reason people will invest this ISA season is because interest rates are so low.
More than half of advisers also say UK equities are the most attractive asset class at the moment, with 39% citing European equities and 25% preferring US equities. Meanwhile, only 7% think cash is the most attractive option.
