Over 50s make use of new ISA allowance

Category: Savings
Date: 3/8/2010

Financially savvy over 50s are planning to make the most of the recently increased ISA allowance limits, new research has revealed.

More than two fifths (41%) of silver savers have pledged to use their maximum ISA allocation in the forthcoming tax year, according to a new survey by Saga Personal Finance.

Those living in London were found to be the keenest to avoid paying tax on their savings, with 46% intending to use their full allowance.

The ISA contribution limits were increased to a maximum of £5,100 for a cash ISA and £10,200 for an investment ISA for those aged 50 and over in October last year.

The new allowances will become applicable to eligible ISA investors of all ages from 6 April 2010.

Almost all (95%) of over 50s claimed to be aware of the increased ISA limits, with over a third (37%) topping up their pot since the allowance increased.

Half of those surveyed who have not topped up their ISA this tax year, said they did not have the extra money to invest, whilst others invested their money in other ways.

Encouragingly, more than four fifths (81%) of over 50s were found to have an ISA.

"With low interest rates it is important that people make their money work hard for them, I am pleased to see that savvy over 50s are making the most of the increased ISA limits," said Andrew Goodsell, Saga's executive chairman.

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