More than three quarters of investors over 50 are expected to take advantage of the increased ISA allowance before the end of the 2009/10 tax year, according to Barclays Stockbrokers.
As the end of the tax year draws nearer, the online stockbroker claims that tax-efficiency "remains crucial to investors' portfolios" as a significant proportion of over 50s have already or are looking to make full use of their ISA entitlement.
It has found that since the stocks and shares ISA allowance was raised from £7,200 to £10,200 for over 50s in October last year, 77 per cent of eligible investors have already invested or plan to invest before the tax year ends on 5 April.
However, despite the increased allowance enabling more money to be sheltered from the taxman, one in five investors aged over 50 have said they have no intention of making use of their new allowance.
Meanwhile, Barclays Stockbrokers has also revealed that there has been a 66 per cent increase in the total value of ISA contributions for the tax year to date.
Commenting, Barbara-Ann King, head of investments at Barclays Stockbrokers says it is encouraging to see over 50s taking advantage of their increased ISA allowance.
"With returns on cash savings rates remaining at an all-time low, investors are going to have to continue to work hard to get returns, and the trend towards investing in Stocks & Shares ISAs is likely to increase still further as we move into the next tax year," she said.
With the new ISA limit set to be rolled out to all eligible investors on 6 April – allowing up to £10,200 to be invested tax efficiently – Ms King is urging over 50s who have not already done so to use their allowance, as money exempt from income and capital gains tax "could quickly be built up".
"For those investors intending to take advantage of this year's ISA allowance, they should do so before the end of the tax year, or they will lose it," she added.
© Fair Investment Company Ltd
