Are your clients 'sleepwalking' through their ISA choices?

Introduction

Millions of UK savers could be unknowingly missing out on opportunities to maximise the growth of their money by failing to properly engage with their Stocks & Shares ISA, according to new research from Wesleyan Financial Services.

While ISAs remain one of the most popular and tax-efficient ways for clients to build long-term wealth, many investors are unknowingly undermining their own returns. But the issue isn’t the product. It’s the lack of engagement – and it’s where advisers can make a meaningful difference, particularly as we approach tax year-end and annual reviews.

The rise of the 'sleepwalking' ISA investor

The study found that many ISA holders are relying on their investments to meet major long-term goals, from wealth accumulation (42%) to retirement planning (28%). Yet their understanding and oversight of those investments is surprisingly limited.

Key findings include:

• 57% don’t know how much they pay in fees
• 8% don’t know what they’re invested in at all
• 67% have never switched provider
• 39% stay with their current provider simply because they assume it’s 'good enough'

For advisers, this paints a picture of clients who may be drifting off course without realising it.

Why this matters for advisers

A 'set and forget' mindset can leave clients exposed to:

• Misaligned risk levels as their circumstances change
• Underperforming or unsuitable investments
• Fee structures that erode long-term returns
• Missed opportunities to diversify or optimise portfolios

These are precisely the areas where professional advice adds tangible value. The research reinforces what many advisers already see in practice: clients often need prompting to review, question and understand their ISA choices, which makes this a great time to revisit conversations about ISAs.

A chance to deepen client conversations

This data gives advisers a strong platform to initiate proactive reviews, especially with clients who haven’t engaged with their ISA for years.

Potential conversation starters include:

• When did you last review your ISA fees?
• Do you know how your ISA is currently invested?
• Has your risk appetite changed since you opened your ISA?
• Are you aware you can split your ISA allowance across multiple providers?*

* 68% of ISA holders are aware that they can hold multiple Stocks & Shares ISAs in the same tax year (within the current £20,000 allowance).

Helping clients move from passive to purposeful investing

Katie Wadey, Chief Product and Commercial Officer at Wesleyan, said: "ISAs can be a powerful way to save and invest, but only if they’re aligned to your needs."

For advisers, this alignment is the heart of the value proposition.

Regular reviews, transparent fee discussions, and risk profiling check-ins all help ensure clients’ ISAs evolve with their lives — not just with the markets.

And for clients who are uncomfortable with volatility, advisers can introduce options such as With Profits ISAs, which aim to smooth returns while still targeting long-term growth.

What this means for your practice

This research reinforces several key opportunities for advisers:

• Re-engage dormant ISA clients who may be unaware of misalignment or inefficiencies
• Demonstrate clear value through fee transparency and portfolio optimisation
• Educate clients on ISA flexibility, including multi-provider strategies
• Support better long-term outcomes by preventing 'sleepwalking' investment behaviour

As advisers look ahead to tax year-end and annual client reviews, revisiting ISA conversations can be a simple but powerful way to strengthen relationships and outcomes.

For those wanting support in shaping these discussions or exploring ISA solutions in more depth, our Intermediaries team is on hand to help.