Majority of over 50s unsure of ISA allowance

Category: Savings
Date: 2/24/2010

The vast majority of over 50s don't know how much their annual ISA allowance (individual savings account) is, according to new research.

Some seventy-six per cent of over 50s are unaware of their annual cash ISA entitlement, which was increased to £5,100 by Alastair Darling in last year's Budget.

An additional limit of £5,100 can also be invested in equities.

The new limits will be rolled out to savers of all ages when the new tax year begins on 6 April.

One third of (32 per cent) savers aged 50 and over think that their cash allowance remains at £3,600, while almost a quarter (22 per cent) wrongly believes they can save just £1,800 a year, data from The Co-operative Financial Services shows.

"The research confirms that although over 50s understand what an ISA is and its multiple benefits, they are not fully aware of the level of ISA allowance," commented Ray Bulmer, managing director, Retail for The Co-operative Financial Services.

Earlier this week, National Savings & Investments revealed that a quarter of all ISA savers think that the limits are to stay the same this year, with the same proportion saying they know a change is being made but are unsure of specifics amounts.

Just 15 per cent said that were fully aware of the new limits.

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