Over 55s more likely to use stocks and shares ISAs
New research from Standard Life has offered some interesting insights into the savings habits of people approaching retirement age in the UK. The study found that more than four times as many UK adults invest in cash ISAs (41%) than stocks and shares ISAs (9%).
According to the research, older investors are most likely to take risks and chase higher returns by saving in stocks and shares ISAs. Standard Life found that 11% of investors aged 55 plus use their ISA allowance to invest in stocks and shares, compared with just 7% of those in the 35-44 age group.
Investors can put up to £11,520 in a stocks and shares ISA in the current tax year, of which up to £5,760 is eligible for a cash ISA.
A comfortable retirement
If you’re approaching retirement age and are thinking about the future, a stocks and shares ISA that focuses on generating maximum income could be a good way to maximise your chances of a steady flow of cash in the years to come.
Standard Life’s Julie Russell said: “Cash held in an ISA or a savings account is often being eroded in real terms. So with the arrival of the new tax year and new ISA limits, it might be worth reviewing your approach, to see if you can take more risk with some of your cash. You could potentially invest in the stock market instead, through a tax efficient Stocks and Shares ISA, to try to beat inflation. However, it’s always sensible to keep some money in cash, where it is safe and you can get instant access to it.