Research from Skipton Building Society found that university, training and the costs of entering adulthood were increasingly taking priority over homeownership. Just over a quarter used matured JISA savings to help fund their education.
Almost a quarter (24%) used the money for everyday living costs, while 20% spent it on personal enjoyment.
Some 66% said they would rethink how they used their JISA savings. Skipton Building Society said this demonstrated demand for a clearer route from saving to homeownership.
Jazz Gakhal, CEO of Money at Skipton Building Society, said: “Following the government’s confirmation of the new First Time Buyer ISA, there is an opportunity to create a clearer pathway from childhood saving to homeownership.
“Giving eligible young adults the option to move some or all of their matured Junior ISA savings into the new First Time Buyer ISA could help more families turn years of careful saving into a meaningful step towards owning a home.
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“Junior ISAs launched in 2011, so the first cohort able to hold one from birth will turn 18 in 2029, the same year the new First Time Buyer ISA is due to launch. Putting this pathway in place from the outset would give those young people a clearer choice when their savings mature.”
The government confirmed that the annual Cash First Time Buyer ISA limit would count towards the overall £12,000 annual cash ISA limit. It also noted that transfers between cash ISAs and Cash First Time Buyer ISAs would be permitted.
