Income ISAs for Over 50s

Looking for regular income?

Income ISAs for the over 50s may be investments designed to pay a level of income either monthly or quarterly, while taking a level of risk the investor is happy with. Risks with investments may vary, with structured income ISAs offering defined returns and sometimes a level of protection for capital, while income funds may invest in bonds or equities, which carry different levels of risk.

Changes to the ISA allowance in 2009 meant that over 50s were able to invest a higher amount in an ISA until the allowance was made the same for all savers in 2010. See ISA allowance for details on the current ISA allowance.

See the table below to compare income ISAs which may be income ISAs for over 50s depending on what you are looking for:

Structured Income ISAs
 Product NameISA OptionIncome YieldMore Info
FTSE 100 Enhanced Income Planyes


fixed income

More Info >
TAX FREE FIXED INCOME: 5 year investment plan paying a fixed monthly income of 0.35% (equivalent to 4.20% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer.
FTSE 100 Defensive Income Planyes


per annum

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A maximum 8 year investment plan paying a potential annual income of 7.20%. Also available for Stocks & Shares ISA and ISA transfer.
FTSE Monthly Contingent Income Planyes


per annum

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Maximum 10 year structured investment plan paying a potential monthly income of 0.50% (equivalent to 6.00% annually) and the opportunity to mature quarterly from year 2 onwards. Also available as a Stocks & Shares ISA investment and ISA transfer.
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Income Funds - Select Range
 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below. 

As well as stocks and shares ISAs, you can invest in a cash ISA during the same tax year as long as the total amounts do not exceed the current ISA allowance.

Compare leading cash ISA deals:

Cash ISAs

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.