Over 50s 'stepping up ISA investments'

About one million people over the age of 50 will top up their stocks and shares this year under the government’s new ISA rules, according to a new report.

Research from Legal & General states that investments in the stocks and shares ISAs market from the over-50 age group will total £2.85 billion in the 2009-10 tax year.

The government’s new regulations have increased the amount people can save in ISAs each year from £7,200 to £10,200, with £5,100 permitted to be held in cash.

Claire Evans, unit trusts marketing director at Legal & General, said that 21 per cent of over-50s with stocks and shares ISAs intend to top up, but have not decided when they will do so.

’A fifth of the over-50s in this target group say they do plan to use their ISA limit but they do not know when,’ she commented.

’So there are many more over-50s out there, we would estimate around 870,000 investors, who might also invest up to the new limit given the right market conditions.’

The new ISA limit comes into effect from October 6th for people born on or before April 5th 1960 and will apply to everyone from the beginning of the next tax year in 2010.
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