The research shows that most consumers take a short-term view for their savings, which is in stark contrast to their attitude toward borrowing, with most people not thinking twice about signing up for a 25-year mortgage. Skandia says that five years should be the minimum term for an ISA invested in shares rather than the maximum.
Young people are most at-risk in terms of their attitude - one in five of the 16- to 24-year-olds surveyed think long term is just three years or less. The 35-to-44 age group has the most realistic attitude toward long-term ISA investments, with 43 percent saying they consider long term as being 10 years or more.
"The problem with taking a short-term attitude toward equity ISA investments is that consumers expose themselves to short term falls in the stock market. Despite this, almost two in five people say they are not willing to take a risk with their equity ISA investments and that their main concern is the safety of their initial investment," says Ian Thomas, investment marketing manager at Skandia.
Only 13 percent of respondents to the survey are prepared to accept higher risk in the pursuit of higher investment growth. Overall, women are more cautious than men, with 43 percent saying their main concern is the safety of their investment compared to 31 percent of men.
"There seems to be a 'have it all now' mentality when it comes to saving, with little concern for long-term financial security," says Thomas. "Too many people have a short-term attitude toward saving while being happy to spread their borrowing over much longer periods in order to reduce the amount they have to repay each month. ISA investments are an excellent way for people to invest in shares for the long term, and this should be for a minimum of five years, not a maximum."