Three quarters of over 50s do not know what their cash ISA allowance is, The Co-operative Financial Services (CFS) has found.
Despite the cash ISA allowance being increased from £3,600 to £5,100 last October, 32 per cent of savers aged over 50 wrongly believe the limit has not changed, while 22 per cent said they thought the limit was £1,800.
These findings, according to the CFS, highlight the fact that the recent increase has "further blurred" over 50s understanding of their entitlements.
Meanwhile, with ISA season now in full swing, the CFS has discovered that although many over 50s are confused by the increased ISA limit, it has not prevented them from saving.
It appears that over 50s are 18 per cent more likely to have invested in an ISA this year than savers aged under 50. In addition, they are also 51 per cent more likely to invest lump sums and 63 per cent less likely to be regular savers.
Commenting, Rod Bulmer, managing director of The Co-operative Financial Services said: "The research confirms that although over 50s understand what an ISA is and its multiple benefits, they are not fully aware of the level of ISA allowance.
"As a trusted financial service provider it is extremely important for us to ensure customers are aware of the current ISA limit so they can gain the benefits from their full tax free allowance."
© Fair Investment Company Ltd