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News: Over-50s 'using increased Isa allowances' News: Over-50s 'using increased Isa allowances'

Over-50s 'using increased Isa allowances'

Fri 5 Mar 2010 - Published in Banking

Over-50s 'using increased Isa allowances'

More than three-quarters of the over-50s are planning to use the increased Isa allowance before the end of the current tax year, it has been found.

Research by Barclays Stockbrokers showed that 77 per cent of investors aged 50 and over intend to capitalise on the stocks and shares Isa limit being taken from £7,200 to £10,200.

The poll also revealed that 48 per cent of the group have already subscribed to the new maximum limit, while eight per cent have already gone above their previous allowance and 21 per cent will do so before the end of the year.

Barbara-Ann King, head of investments at Barclays Stockbrokers, says: "It is encouraging that all investors are continuing to shelter their savings in Isas and in particular that the over-50s have actively taken advantage of their increased tax-free allowance."

She also predicted that stocks and shares Isas will continue to increase in popularity in the coming months, as the returns on cash accounts remain low.

Claire Evans, unit trusts marketing director at Legal & General, claimed the end of the 2009/2010 tax year could see more people express an interest in stocks and shares products, as they often prove to be more profitable.