41% of over 50s set to make most of ISA allowance

New research by Saga Personal Finance has revealed that almost half (41%) of over fifties with ISAs are planning to make the most of the recently increased ISA limits in the forthcoming tax year by using their maximum allowance, with four fifths (81%) of over 50s now having an ISA.

In October last year, 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. Almost all (95%) of over 50s are aware of the increased ISA limits, and over a third (37%) have topped up their pot since the limits increased in October.

Those living in London are the keenest to avoid tax on their savings, with 46% planning to use their full allowance. Half of over 50s who haven’t topped up their ISAs since this tax year, said they didn’t have the extra money to invest, whilst others invested their money in other ways.

Andrew Goodsell, Executive Chairman, Saga, said:

“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.”