The majority of young adults are choosing to stay invested rather than cash out their Junior ISA, says Hargreaves Lansdown.
Its data showed that 85% of JISAs that matured in tax year 2024/25 still had money invested a year later and one in four young adults added money to the pot.
Clare Stinton, senior personal finance analyst at Hargreaves Lansdown, said: “Young adults are navigating a tough financial landscape. There is the rising cost of university and the debt that comes with it, alongside higher rates of unemployment – not to mention the widely documented difficulties of buying your first home due to soaring house prices.
“Against this gloomy backdrop, it’s unsurprising that Junior ISAs are becoming increasingly popular. More parents and grandparents are looking for ways to give the next generation a financial head start – and perhaps also rethinking when and how they pass their wealth down to the next generation. But extended family and friends can also top up the nest egg.”
The average value of a maturing Hargreaves Lansdown JISA in 2025/26 was £21,265, an increase of 9% on the previous year.
Hargreaves Lansdown said if the nest egg was invested in their stocks and shares ISA for another decade, without any additional money going in, this figure could grow to around £35,000.
For those with goals such as getting on the property ladder, contributing £200 a month over the same 10-year period could see the total value of their nest egg rise to just over £66,000.
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