- The average matured HL JISA in the 2024/25 tax year was worth £19,537.
- There were 12% more maturing HL JISAs in the 2024/25 tax year than a year earlier.
- Among HL clients with matured JISAs, the vast majority still have money invested a year later.
- Quarter of matured HL JISA clients have topped up a year after maturity (24%).
- Today’s 18-year-olds may also have a child trust fund – worth over £2,000 on average.
- 23% more HL LISA clients paid into it this tax year.
Sarah Coles, head of personal finance, Hargreaves Lansdown:
“Celebrating your 18th birthday might involve the time-honoured tradition of slightly sub-optimum decision making and mild regret. But when the dust has settled on the party, and everyone is feeling 100% again, these fresh-faced adults have a series of decisions to make about money. There are some huge opportunities to establish excellent habits that will stand them in good stead for the rest of their lives.
Your nest egg
If their parents set up a Junior ISA and paid into it regularly, it will provide them with an excellent start in life. The average matured HL JISA in the 2024/25 tax year was worth £19,537, which can make an enormous difference to anything from supporting studies to putting together a property deposit. For many it will also form the start of a lifelong investment habit.
The good news is that more people are falling into this bracket than ever. The JISA has been getting increasingly popular since it launched, and last year 12% more JISAs matured than a year earlier.
However, even if you don’t have a JISA, today’s 18-year-olds will still have some money with their name on it, in a Child Trust Fund. The average market value of those that matured this year and just stayed in the CTF is £2,053, so it’s well worth tracking it down.
If you’ve lost track of your CTF, you can track it down through the government website. You need to sign into the Government Gateway, or sign up for an account. Then you can fill out a form, and they will inform you of the provider holding your CTF. You just need to get in contact with them, prove your identity, and should be able to access the account.
Choosing what to do with it
Parents may be concerned that their offspring might be tempted to spend the money, or waste it, but there’s every sign that 18-year-olds have built enough understanding and appreciation of the money in a JISA by the time it matures that they make carefully considered decisions about it.
Among HL clients with matured JISAs, the vast majority still have money invested a year later. It’s not just that they’re not spending it: a quarter of matured HL JISA clients have topped up a year after maturity (24%). Given that not all 18-year-olds are working, and not all are in a position to build their investments, this shows real commitment from those who have the resources.
The opportunities go beyond stocks and shares ISAs, because at 18, people can also take advantage of the Lifetime ISA. Those who opt for a LISA can super-charge their investments, without any extra effort. By switching £4,000 from a matured JISA to a LISA, they will get a £1,000 top up from the government. This will then grow with the rest of the money invested, so if they saw 5% growth in the first year, they would be £1,050 better off than if they’d left it in the matured JISA – without putting any extra cash into their investments. They can continue this switch every year, so if they had £16,000 built up in a JISA, over the period of four years they could turn it into £22,693. It means that those who are saving towards a first property and have at least a year until they plan to buy, have the opportunity to take a major stride towards building a deposit that will give them a brilliant head start in adult life.”
