Don't miss out on extra ISA allowance

Commenting on the changes to the Over 50s ISA limits due to be introduced from Tuesday 6th October, Richard Norman, director of savings, Post Office said: "The increase in ISA limits for over 50s from October is a great step towards encouraging people to save more. It is especially helpful for those approaching retirement and shows there are still rewards to be had for saving, even in the current low interest rate environment.

"However, there is still low awareness about ISA limits with 62 per cent of people aged 50 and over admitting to not knowing the new ISA limits. With many people feeling the financial squeeze, only one in five (20 per cent) savers over 50 plan to make additional contributions to an existing ISA and even fewer - one in ten (10 per cent) - plan to take out a new ISA and invest the new full allowance. When asked, two fifths (40 per cent) said they will not take up either of these options.

"With less than one in ten (8 per cent) of over 50s knowing the new limits (£10,200 total ISA contributions, £5,100 cash ISA contributions), it is vital that savers are made aware and make the most of this increase. At a time when savers are struggling more than ever, it is important they ensure their money is working as hard as possible for them by taking advantage of their tax free allowances."