News
Oct 06
Good News for Savers Aged 50+
By Geoff Charles
Savers reaching the age of 50 before April 5 2010 can put £3,000 more into their ISAs thanks to a jump in the contribution limit from £7,200 to £10,200 as of 6 October 2009.
The full £10,200 can go into share ISAs or can be split between cash and shares. For cash ISAs the new maximum is £5,100. This means half the overall allowance can be funnelled into shares and half into cash. Alternatively, a smaller amount could be put into cash and the balance into shares.
Geoff Charles of Bower Retirement Services says: ‘The new rules have seen the introduction of a variety of new accounts and savers are advised to shop around for the best deal.’
Regular savers without cash ISAs may increase contributions to a share based ISA by £500 a month for the next six months to use up their full £3,000 increase.
ISAs replaced Personal Equity Plans (PEPs) and Tax-Exempt Special Savings Accounts (TESSAs) as of 6 April 1999 and form the Government’s primary tax advantaged savings vehicle outside pensions.
Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the south of England. For more information e-mail info@brsequity.co.uk or call 0800 4118668. Bower Retirement Services offers a free, no obligation initial consultation to homeowners considering Equity Release.