Over 50's would use extra ISA savings allowance

In a survey to find out whether investors are likely to take up additional ISA allowances from 6 October this year, Legal & General questioned over 400 ISA and unit trust investors, all aged over 50, about the changes to the amount they could invest in a stocks and shares ISA.

The research shows that unprompted awareness of the increase in the ISA savings limits is highest among frequent investors in this age group - i.e. those who invest every year - at 53 per cent of those questioned.

When asked whether they were planning to invest up to their new £10,200 ISA limit, 44 per cent of over 50's said a definite "YES" with a further 32 per cent unsure, potentially waiting to see what their financial position is before commiting their money.

Claire Evans, Legal & General Savings Marketing Director said: "Whilst the Government could clearly do more to help to raise awareness of the change to ISA allowances for this age group it is reassuring to see that only a quarter of ‘active' savers (24 per cent) say they are not planning to invest. These investors recognise the valuable tax savings they are being offered and the majority are likely to use their allowance before the end of the tax year."

Claire added: "In times of financial uncertainty it is more important than ever for people to ensure that their savings are working as hard as they can. It makes sense for the over 50's to take advantage of the increase in ISA allowances if they have any savings in deposit accounts, which do not offer the same generous tax advantages. They should also consider using their extra tax free allowances to put aside a small amount in a stocks and shares or cash ISA each month as this could make the difference between coping or struggling through difficult financial times."