SAVINGS BOOST FOR OVER-50s
Over 50s
Chancellor Alistair Darling introduced the new limits in this year's budget, of which up to £5,100 can be invested in a cash ISA and £5,100 in stocks and shares, or the entire £10,200 can be put into stocks are shares – up from the current limits of £3,600 apiece, or £7,200 in total.
Anyone aged over 50 who has already invested in their ISA this year up to the previous total can ‘top up' their holdings to the new limit.
Income from ISA investments is tax-free and cash ISA savings accounts generally offer higher rates than a standard instant-access account. For this reason, many investors have opted to use their full ISA allowance each year, since the accounts were introduced in 1999.
However, several surveys have shown that most older people are either unaware that allowances are being increased, or do not know when they are increasing and by how much.
Platinum Portfolios managing director Ian Blackburn said: “With historically low interest rates and turbulent stock markets, it has never been more important to maximise the return on your investments, and since the returns on ISAs are tax-free, most people would be well-advised to take advantage of them where possible.
“For the over-50s, who may be looking hard at their current pension plans and investments to see whether they have enough put by to enjoy the lifestyle they aspire to in retirement, adding a little extra to their ISA, in line with the new limits, may be a relatively painless way of doing this.”
For more information contact Platinum Portfolios Limited on 01323 642568 or visit www.platinumportfolios.co.uk.
Posted Tuesday January 19th 2010
By Platinum Portfolios